$550 Million Scheme to Defraud SSA Leads to Guilty Plea

View this article online at https://www.fedsmith.com/2017/03/28/550-million-scheme-defraud-ssa-leads-guilty-plea/ and visit FedSmith.com to sign up for free news updates
By on March 28, 2017 in Court Cases with 0 Comments

A Social Security disability lawyer recently pleaded guilty in federal court for his role in a scheme to fraudulently obtain $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.

According to the plea, from October 2004 to April 6, 2016, Eric Christopher Conn participated in a scheme with former SSA administrative law judge David B. Daugherty and multiple doctors that involved the submission of thousands of falsified medical documents to the SSA. As a result of the scheme, Conn and his co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants for these fraudulent submissions.

According to documents filed in connection with the guilty plea, Conn admitted that from December 2004 through April 2011, he paid Daugherty approximately $10,000 a month to award disability benefits to claimants for whom Conn submitted falsified medical documents.

As part of his plea, Conn admitted that he submitted the falsified medical documents, and Daugherty authored decisions granting disability benefits, in well over 1,700 claimants’ cases. Conn admitted that he paid medical professionals to sign medical forms that he fabricated before evaluations of claimants took place.

Also according to his plea, Conn admitted that he routinely prepared and medical professionals signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of the claimants’ actual physical or mental conditions. Conn admitted that he received more than $5.7 million in representative fees from the SSA based upon these fraudulent claims.

Conn and Daugherty were indicted last year and charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme. Several agencies are currently investigating the case. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Want to see more articles like this one? Sign up for FedSmith's free email lists!

© 2019 Ian Smith. All rights reserved. This article may not be reproduced without express written consent from Ian Smith.

Tags:

About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.

Top