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Wisconsin Woman Sentenced for Social Security Fraud

June 05, 2015

Office Affiliation: The Office of Investigations

From the U.S. Attorney's Office, Western District of Wisconsin:

MADISON, WIS. -- John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Grimhilde Hanni Schwinn, 51, Marshfield, Wis., was sentenced today by U.S. District Judge James D. Peterson to three years’ probation and ordered to pay $31,205.80 to the Social Security Administration (SSA) in connection with her misappropriation of funds that were designated for her son. Schwinn pleaded guilty to this charge on March 18, 2015.

Schwinn acted as a Representative Payee for her son who had been receiving Social Security Disability Benefits. In 2010, he received a five year prison sentence and was incarcerated. Under SSA regulations, he became ineligible for benefits. Also, under SSA regulations, a Representative Payee is required to inform SSA of any change in the beneficiary’s status, including incarceration. The investigation found that instead of informing SSA of the incarceration status of her son, she continued to receive the disability payments which she used for her own benefit.

The case was investigated by the Office of Inspector General, Social Security Administration. The prosecution of this case was handled by Assistant U.S. Attorney Peter M. Jarosz.

From the U.S. Attorney's Office, Western District of Wisconsin:

MADISON, WIS. -- John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Grimhilde Hanni Schwinn, 51, Marshfield, Wis., was sentenced today by U.S. District Judge James D. Peterson to three years’ probation and ordered to pay $31,205.80 to the Social Security Administration (SSA) in connection with her misappropriation of funds that were designated for her son. Schwinn pleaded guilty to this charge on March 18, 2015.

Schwinn acted as a Representative Payee for her son who had been receiving Social Security Disability Benefits. In 2010, he received a five year prison sentence and was incarcerated. Under SSA regulations, he became ineligible for benefits. Also, under SSA regulations, a Representative Payee is required to inform SSA of any change in the beneficiary’s status, including incarceration. The investigation found that instead of informing SSA of the incarceration status of her son, she continued to receive the disability payments which she used for her own benefit.

The case was investigated by the Office of Inspector General, Social Security Administration. The prosecution of this case was handled by Assistant U.S. Attorney Peter M. Jarosz.

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