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Iowa Man Sentenced to 15 Months in Prison for Social Security Fraud

February 02, 2016

Office Affiliation: The Office of Investigations

From the U.S. Attorney’s Office, Southern District of Iowa:

DAVENPORT, IA – On January 29, 2016, James Clayton Bailey, 67, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 15 months in prison for theft of government property, announced Acting United States Attorney Kevin E. VanderSchel. Bailey was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Bailey was also ordered to pay restitution in the amount of $52,441 to the Social Security Administration (SSA).

Bailey pleaded guilty to theft of government property on October 26, 2015. According to the plea agreement, Bailey began receiving Social Security disability benefits in 2003. On October 29, 2009, Bailey was incarcerated in the Iowa Department of Corrections for a sexual abuse conviction. He was released from prison on May 9, 2014. During his incarceration, Bailey failed to notify SSA he was incarcerated and continued to receive his disability payments, knowing he was not qualified to receive such benefits. Bailey received over $52,000 in benefits while he was in prison.

This matter was investigated by the Social Security Administration, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

DAVENPORT, IA – On January 29, 2016, James Clayton Bailey, 67, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 15 months in prison for theft of government property, announced Acting United States Attorney Kevin E. VanderSchel. Bailey was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Bailey was also ordered to pay restitution in the amount of $52,441 to the Social Security Administration (SSA).

Bailey pleaded guilty to theft of government property on October 26, 2015. According to the plea agreement, Bailey began receiving Social Security disability benefits in 2003. On October 29, 2009, Bailey was incarcerated in the Iowa Department of Corrections for a sexual abuse conviction. He was released from prison on May 9, 2014. During his incarceration, Bailey failed to notify SSA he was incarcerated and continued to receive his disability payments, knowing he was not qualified to receive such benefits. Bailey received over $52,000 in benefits while he was in prison.

This matter was investigated by the Social Security Administration, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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