Charter Fishing Boat Captain Pleads Guilty to Defrauding Social Security Disability Program
U.S. Attorney’s Office, Western District of Washington
Tacoma – A 50-year-old resident of Westport, Washington, pleaded guilty today in U.S. District Court in Tacoma to Social Security Fraud, announced Acting U.S. Attorney Teal Luthy Miller. Derek Gochanour admitted that he failed to tell the Social Security Administration that he was able to work, and illegally collected $126,928 in benefits. Chief U.S. District Judge David G. Estudillo scheduled sentencing for June 9, 2025.
According to the plea agreement and civil settlement agreement, in April 2001, Gochanour applied for disability insurance benefits from the Social Security Administration (SSA) due to his diagnosis of mitochondrial myopathy – a form of muscle disease. In January 2003, a court found Gochanour was disabled, and he began collecting benefits. Just two years later, Gochanour obtained his Merchant Mariner Credential from the U.S. Coast Guard indicating that he was physically able to perform shipboard functions.
In January of 2012, the Coast Guard granted Gochanour a medical waiver that required him to submit neurological evaluations regarding the stability of his condition so that he could keep his Merchant Mariner Credential. Gochanour provided the Coast Guard with several of these evaluations.
In 2015, Gochanour and an associate purchased a 41-foot charter fishing boat. Gochanour served as the captain, piloting the boat and helping customers catch fish in the ocean waters off of Westport. However, no wages were ever reported for Gochanour’s work on the charter craft.
In the plea agreement, Gochanour admits that since at least 2015, his medication and lifestyle allowed him to work several months per year and he should have reported that to SSA. For example, in 2015 Gochanour sent the Coast Guard a letter from his neurologist stating that he was able to work and perform duties on the job. However, he never provided that letter to SSA, even though he had received a notice that he needed to inform the agency of any relevant changes – including if a doctor said his health had improved. In 2022, Gochanour submitted a Continuing Disability Review Report to SSA that did not disclose his improved health, his Merchant Mariner Credential, or his work as a charter ship captain.
Prosecutors have agreed to recommend a sentence of three months in prison followed by three months of home detention. Chief Judge Estudillo is not bound by the recommendation and can impose any sentence allowed by law. Social Security fraud is punishable by up to five years in prison.
In a parallel civil investigation, Gochanour has agreed to pay the government $253,856 of which $126,928 is restitution for the benefits he wrongly received. The remaining amount owed will settle civil claims.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG) and the Coast Guard Investigative Service (CGIS).
The criminal case is being prosecuted by Special Assistant United States Attorney Jessica M. Ly. The civil case was handled by Assistant United States Attorney Katie Fairchild.
Contact
Press contact for the U.S. Attorney’s Office is Communications Director Emily Langlie at (206) 553-4110 or Emily.Langlie@usdoj.gov.