Elder Fraud – Rupert Morga sentenced to prison for VA and Social Security fraud

January 18, 2015

Rupert Morgan has been sentenced to two years, and three months in federal prison for theft of VA and Social Security funds paid to a beneficiary who died in 1997.

Social Security Logo“Morgan stole more than $400,000 to which he was not entitled,” said United States Attorney Sally Quillian Yates.  “This case is particularly troubling because he had a successful and lucrative career in the legal profession during the entire time period that he was committing this fraud on the United States government.”

Special Agent in Charge Monty Stokes, U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) – Southeast Field Office, said “this sentencing is a testament to the excellent interagency cooperation with VA OIG, Social Security Administration, and the Department of Justice.  We are committed to aggressively pursuing those who commit fraud against our nation’s veterans, the Department of Veterans Affairs and its programs.”

“The Social Security Office of the Inspector General is committed to pursuing those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits, sometimes for many years. We are working closely with Social Security and the Department of Justice to identify and prosecute these people and recover stolen funds, as one of our many efforts to protect the integrity of Social Security’s programs for those who rely on them now and into the future,” said Thomas Caul, Special Agent-in-Charge of the SSA OIG’s Atlanta Field Division.

According to United States Attorney Yates, the charges and other information presented in court: In December 1996, Morgan was a paralegal who has been employed by various law firms in the Atlanta area, and R.V., a VA disability and Social Security Administration (SSA) retirement beneficiary, was a patient at a personal care home owned and operated by Morgan’s now ex-wife.  Morgan and R.V. opened a joint SunTrust bank account into which R.V.’s benefits were deposited.  R.V. died in November 1997.  After R.V.’s death, the defendant kept the joint bank account open while VA and SSA benefits continued to be deposited into the account.

In 2007, ten years after R.V.’s death, the defendant opened a second joint bank account in both his and R.V.’s names.  He then frequently transferred money from the original joint account to the second joint account. Morgan often let large sums of money accumulate in the accounts before he spent it.  When the SSA discovered the fraud, it was able to reclaim over $101,000 that was sitting in the defendant’s and R.V.’s joint bank account.   In total, the defendant stole $258,045.00 from the VA and $142,372.00 from the SSA.

Morgan, 53, of Atlanta, Ga., has been sentenced to two years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $299,164.75.  Morgan was convicted of these charges on September 26, 2014, after he pleaded guilty.


Social Security Fraud – Gaylynne Gale faces up to 10 years in federal prison…ouch…heavy price for a small benefit.

August 1, 2011

A 63-year-old Longview, Texas woman has pleaded guilty to social security fraud charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.  Facing up to 10 years in prison, Gaylynne Gale pleaded guilty to theft of government property charges today before U.S. Magistrate Judge Chad Everingham.

According to the indictment, from February 2004 until June 2010, Gale intentionally concealed her living arrangements with her ex-husband in order to receive more than $47,000 from the Social Security Administration in the form of Social Security Supplemental Security Income payments.  Her misrepresentation also caused a significant loss to the Texas Medicaid Program.  Gale was indicted by a federal grand jury on Sep. 1, 2010.

The Social Security Administration’s Supplemental Security Income (SSI) program is a federally administered cash assistance program designed to provide a floor of income for the aged, blind, or disabled who have little or no income or resources.  The Texas Medicaid program helps pay for reasonable and necessary medical procedures and services provided to individuals who are deemed eligible under state low-income programs.

YOUR COMMENTS ARE WELCOME!


Social Security Fraud Could Earn 27 Year Old Shawn R. Johnson Prison Time!

May 19, 2008

So you think you can pull the wool over the eyes of the government? Not so fast. Every choice has a consequence and one of the things that some of us learn the hard way is – what you do in the dark will be brought to the light. In other words, if you do something that is wrong it will be discovered.

You reap what you sow! I know. I sowed bad seeds and reaped the consequences. And now it seems that the same may be true for a young 27 year old.

Shawn R. Johnson, of Fayette County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of Social Security Fraud.

The one-count indictment named Shawn R. Johnson, age 27.

According to the indictment, Johnson failed to disclose to the Social Security Administration employment with and earned income from Polito Custom Carpet, located in Hopwood, Pennsylvania, and that such events affected his continued right to receive Supplemental Security Income benefits.

COMMENT: Now I can assure my readers that the minor benefit that Johnson received is not worth the cost he will pay. Facing up to 5 years in prison, a fine of $250,000, or both, Johnson will soon understand that cost of wrong choices is substantial.

Every choice has a consequence is a comment I make in most presentations. As a white collar crime speaker, I speak from first hand experience about the truth about consequences. Reality is – no one escapes the consequences of their choices. While Johnson may have enjoyed the money for a time and avoided the consequences – they did not avoid the consequences all together. Prison is no fun and Johnson is facing several years plus substantial restitution for this conviction. Likely he will serve time and that will prove to be a dramatic change from his prior activities. You do reap what you sow.

White Collar Crime Speaker – Chuck Gallagher – signing off…


Mortgage Banker Rose Shaw Sentenced to Prison for Fraud – Comments by Ethics Speaker Chuck Gallagher

January 17, 2008

As the housing market was booming in late 2005, Rose A. Shaw applied for a loan to purchase real estate in Missouri. The problem was – the date she submitted on the application for the loan was – well false – to say the least.

She submitted false information on the application:

  • She had false income records for 2005;
  • False financial statements for 2004;
  • A false federal income tax return for 2004;
  • She created a false bank account to inflate her purported monthly income

Based on the false information, she was granted a loan. But beyond her fraudulent actions above, Shaw also received monthly social security disability checks from January 1985 through March 2006. She claimed that she was mentally retarded and suffered from schizophrenia.

I think she was retarded, but not in a medical sense. Rather, she made choices that would eventually have a consequence. Operating as Rose Shaw Enterprises, LLC and Shaw Brokerage Real Estate Investment Firm, LLC, Shaw made more dumb choices that would have an ultimately negative effect than most of us could think of.

To top off her choices which would take her to prison, Shaw forged the signature of the Chief United States Bankruptcy Judge Barry Schermer’s signature.

prison-hands.jpg

So, forgery, social security fraud, and mortgage fraud combined earned Rose Shaw a place in Federal prison for 33 months. (The sentence was amazingly low considering the combination of the crimes). In addition to the prison sentence, Shaw was ordered to make mandatory restitution in an amount in excess of $225,000.

What are your thoughts on the sentence for Rose Shaw?

Business Ethics Speaker, Chuck Gallagher (See Demo Video on YouTube) signing off.