Connecticut Man Pleads Guilty to $218,000 Deceased Payee Fraud
From the U.S. Attorney’s Office, District of Connecticut:
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of theft of public funds.
According to court documents and statements made in court, NEWMAN’s grandmother was entitled to receive Social Security Administration (“SSA”) monthly benefit payments starting in 1980. The payments were made by direct deposit into a bank checking account. Although NEWMAN’s grandmother passed away in October 1996, the direct deposit payments continued until June 2014.
In March 2011, NEWMAN began accessing the funds in the account to make electronic payments on his credit card. From the time of his grandmother’s death until June 2014, approximately $220,729 of monthly benefit payments, net of Medicare premiums, were directly deposited into her bank account. NEWMAN used $218,079 of the funds for his own benefit.
Judge Hall scheduled sentencing for March 9, 2016, at which time NEWMAN faces a maximum term of imprisonment of 10 years, a fine of up to twice the amount of money stolen, and mandatory restitution to the Social Security Administration.
This matter is being investigated by the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anastasia Enos King.
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of theft of public funds.
According to court documents and statements made in court, NEWMAN’s grandmother was entitled to receive Social Security Administration (“SSA”) monthly benefit payments starting in 1980. The payments were made by direct deposit into a bank checking account. Although NEWMAN’s grandmother passed away in October 1996, the direct deposit payments continued until June 2014.
In March 2011, NEWMAN began accessing the funds in the account to make electronic payments on his credit card. From the time of his grandmother’s death until June 2014, approximately $220,729 of monthly benefit payments, net of Medicare premiums, were directly deposited into her bank account. NEWMAN used $218,079 of the funds for his own benefit.
Judge Hall scheduled sentencing for March 9, 2016, at which time NEWMAN faces a maximum term of imprisonment of 10 years, a fine of up to twice the amount of money stolen, and mandatory restitution to the Social Security Administration.
This matter is being investigated by the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anastasia Enos King.