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Clinton Woman Sentenced for Social Security Fraud and False Statements

January 15, 2021

Office Affiliation: The Office of Investigations

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

BANGOR, Maine: A Clinton woman was sentenced today in federal court for Social Security fraud and making false statements, U.S. Attorney Halsey B. Frank announced.

U.S. District Judge John A. Woodcock, Jr. sentenced Katherine Prosper, 62, to four years of probation, with a condition of home confinement not to exceed six months. She was also ordered to pay $89,864.00 in restitution to the Social Security Administration (“SSA”). Prosper pleaded guilty on January 10, 2020.

According to court records, from about August 2006 through March 2019, Prosper, 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, she falsely represented to SSA that she was living alone and not receiving help or money from any other person during this time. During an interview with law enforcement agents, she admitted to concealing her living situation from SSA because she knew it would make her ineligible to receive SSI.

SSA’s Office of the Inspector General and the U.S. Postal Inspection Service investigated the case.

BANGOR, Maine: A Clinton woman was sentenced today in federal court for Social Security fraud and making false statements, U.S. Attorney Halsey B. Frank announced.

U.S. District Judge John A. Woodcock, Jr. sentenced Katherine Prosper, 62, to four years of probation, with a condition of home confinement not to exceed six months. She was also ordered to pay $89,864.00 in restitution to the Social Security Administration (“SSA”). Prosper pleaded guilty on January 10, 2020.

According to court records, from about August 2006 through March 2019, Prosper, 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, she falsely represented to SSA that she was living alone and not receiving help or money from any other person during this time. During an interview with law enforcement agents, she admitted to concealing her living situation from SSA because she knew it would make her ineligible to receive SSI.

SSA’s Office of the Inspector General and the U.S. Postal Inspection Service investigated the case.

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