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Maine Woman Pleads Guilty to Social Security Fraud and False Statements

January 15, 2020

Office Affiliation: The Office of Investigations

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

Bangor Maine: A Clinton woman pleaded guilty on Friday in federal court in Bangor to Social Security fraud and making false statements, U.S. Attorney Halsey B. Frank announced.

According to court records, from about August 2006 through March 2019, Katherine Prosper, 61, a recipient of Supplemental Security Income (“SSI”), concealed the presence of her husband in her household in order to maintain her eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled, or elderly. Prosper’s husband had sufficient income to render her ineligible for the benefits she received during that period. In multiple reviews of her eligibility for benefits, Prosper falsely represented to the Social Security Administration (“SSA”) that she was living alone and not receiving help or money from any other person during this time. At an interview with law enforcement agents, Prosper admitted to concealing her living situation from SSA because she knew it would make her ineligible to receive SSI.

Prosper faces up to five years in prison and a fine of up to $250,000 on both charges, and up to three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.

The investigation was conducted by SSA’s Office of the Inspector General and the U.S. Postal Inspection Service.

Bangor Maine: A Clinton woman pleaded guilty on Friday in federal court in Bangor to Social Security fraud and making false statements, U.S. Attorney Halsey B. Frank announced.

According to court records, from about August 2006 through March 2019, Katherine Prosper, 61, a recipient of Supplemental Security Income (“SSI”), concealed the presence of her husband in her household in order to maintain her eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled, or elderly. Prosper’s husband had sufficient income to render her ineligible for the benefits she received during that period. In multiple reviews of her eligibility for benefits, Prosper falsely represented to the Social Security Administration (“SSA”) that she was living alone and not receiving help or money from any other person during this time. At an interview with law enforcement agents, Prosper admitted to concealing her living situation from SSA because she knew it would make her ineligible to receive SSI.

Prosper faces up to five years in prison and a fine of up to $250,000 on both charges, and up to three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.

The investigation was conducted by SSA’s Office of the Inspector General and the U.S. Postal Inspection Service.

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