Kansas City Woman Pleads Guilty to Social Security, Bankruptcy Fraud Schemes

Friday, January 31, 2020
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From the U.S. Attorney's Office, Western District of Missouri:

KANSAS CITY, Mo. – A Kansas City, Missouri woman pleaded guilty in federal court today to a Social Security and bankruptcy fraud scheme.

Carol L. Dille, 67, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of wire fraud and one count of bankruptcy fraud.

Dille married Gerald A. Sanders in November 1988; they separated in 2009. Dille admitted today that she filed an online application for retirement insurance benefits in September 2013, using the identity – including the name, date of birth, and Social Security number – of Sanders.  

Dille, representing herself as Sanders, provided her own address, phone number, and email address as contact information. Dille, while still representing herself as Sanders, indicated benefits should be direct deposited into the bank account of “Alliance of Divine Love Chapel 1202,” of which she was the sole authorized signor on the account.

On May 7, 2015, Dille filed for Chapter 13 bankruptcy. She claimed $500,001 to $1 million in estimated liabilities, but failed to list – effectively concealing – the Alliance of Divine Love bank account. Dille’s bankruptcy case was dismissed on Oct. 5, 2015, because she failed to make required payments.

On March 9, 2016, Dille again filed for bankruptcy. Dille again failed to list – effectively concealing – the Alliance of Divine Love bank account. This case was dismissed on May 5, 2016, because Dille again failed to make required payments.

During the summer of 2016, Dille communicated with Sanders (who had moved to Indonesia) via email about helping him set up his retirement insurance benefits. She told him she had set up his benefits to begin depositing into a credit union. In August 2016, following a move from Indonesia to Guam, Sanders went into a Social Security Administration field office in Guam. Sanders was told the Social Security Administration had been paying retirement benefits for him since 2013. Sanders stated that he was not aware he had been receiving benefits since 2013, and that he had moved to Indonesia in 2009.

From October 2013 through November 2017, the Social Security Administration paid a total of $76,601 in monthly retirement payments earmarked for Sanders. Due to Dille’s fraudulent application and her subsequent concealment of the bank account, she fraudulently obtained at least $54,752 in retirement insurance benefits under Sanders’s name.

Under federal statutes, Dille is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Social Security Administration, Office of Inspector General.