Punxsutawney Woman Pleads Guilty to Social Security Fraud

JOHNSTOWN, Pa. – A resident of Punxsutawney, Pennsylvania, pleaded guilty in federal court to a charge of violating federal fraud laws, United States Attorney Eric G. Olshan announced today.

Patty Merlo, 66, pleaded guilty to Count One of the Indictment before United States District Judge Stephanie L. Haines.

In connection with the guilty plea, the Court was advised that, from in and around May 2016 to in and around January 2022, Merlo embezzled and converted for her own use approximately $91,300 in Social Security benefit payments to which she knew she was not entitled.

Judge Haines scheduled sentencing for March 26, 2025. The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Social Security Administration - Office of the Inspector General conducted the investigation that led to the prosecution of Merlo.