Social Security Fraud – 42 U.S.C. § 408
Federal Charges for Social Security Fraud
Social Security fraud is a federal offense involving false statements, misrepresentations, or concealment of information to obtain benefits from the Social Security Administration (SSA).
Federal prosecutors commonly charge these cases under 42 U.S.C. § 408, a statute that criminalizes various forms of fraud related to Social Security benefits and records.
Social Security disability benefits, retirement benefits, and Supplemental Security Income (SSI) are all subject to strict federal eligibility requirements.
When someone intentionally provides false information or fails to disclose relevant facts affecting eligibility, federal authorities may investigate the matter as fraud.
Federal agencies such as the Social Security Administration Office of Inspector General (OIG) and the Department of Justice investigate suspected violations. If sufficient evidence exists, prosecutors may file charges in federal court.
Your best chance for a favorable outcome in a white-collar crime is with an experienced California criminal defense attorney at the Hedding Law Firm. To schedule a consultation, call (866) 986-2092 or use the contact form here.
What Does 42 U.S.C. § 408 Prohibit?
42 U.S.C. § 408 makes it illegal to knowingly engage in fraudulent conduct related to Social Security programs. The law prohibits numerous deceptive actions intended to obtain benefits or manipulate Social Security records.
Examples of prohibited conduct include:
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Making false statements to obtain Social Security benefits
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Submitting false information in a disability application
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Using another person's Social Security number
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Concealing information that would affect benefit eligibility
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Falsely representing identity to the Social Security Administration
Under the statute, a person may be charged if they knowingly and willfully attempt to obtain payments to which they are not legally entitled.
Key Provisions of the Federal Social Security Fraud Statute
The statute outlines several types of criminal conduct. It prohibits individuals from knowingly making false statements to increase benefit payments or obtain unauthorized payments.
The law also criminalizes misrepresentations made in connection with disability determinations and the intentional use of false identity information when dealing with the Social Security Administration.
These provisions are designed to protect the integrity of federal benefit programs and ensure that benefits are paid only to eligible recipients.
Common Examples of Social Security Fraud
Social Security fraud can take many forms. The key element is that the conduct must be performed knowingly and intentionally.
Examples include:
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Applying for benefits using a false name or Social Security number
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Providing false information to establish or maintain Social Security records
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Falsely representing a number as your Social Security number
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Entering misleading or false information on tax forms
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Claiming an incorrect number of dependents to increase payments
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Creating or altering a counterfeit Social Security card
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Using a fraudulently obtained Social Security number to increase benefits
Additional examples include:
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Continuing to collect benefits after returning to work without reporting income
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Using someone else's Social Security number to obtain benefits
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Making false statements in applications for Social Security or SSI benefits
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Failing to report employment income that affects eligibility
Examples involving beneficiaries or representatives include:
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A representative payee misusing funds intended for a beneficiary
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Using benefit payments for personal expenses
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Failing to spend the funds for the beneficiary's care
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Another common example involves failing to report a change in disability status.
For instance, someone may receive Social Security disability benefits after suffering an injury. If that person later recovers and returns to work but intentionally fails to report the change to the Social Security Administration, they could be investigated for Social Security fraud.
Importantly, a person may still face prosecution even if the government has not yet paid benefits based on the fraudulent claim.
Related Federal Laws Involving Social Security Fraud
Several federal statutes address fraud and misconduct involving Social Security programs.
42 U.S.C. § 1383a – Fraud Involving Supplemental Security Income
This statute criminalizes fraud connected to Supplemental Security Income (SSI) benefits. It addresses false statements, concealment of information, and misuse of SSI funds.
42 U.S.C. § 1307 – Penalties for Fraud
This law provides penalties for individuals who knowingly make false statements or representations in connection with Social Security programs.
18 U.S.C. § 1001 – False Statements to Federal Authorities
This statute criminalizes knowingly making false statements to federal agencies during investigations or administrative proceedings.
18 U.S.C. § 641 – Theft of Government Funds
Federal prosecutors sometimes charge this offense when someone unlawfully receives government benefits.
Penalties for Social Security Fraud
A conviction for Social Security fraud can lead to serious penalties in federal court.
Possible consequences include:
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Criminal fines ranging from $500 to $10,000
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Federal prison sentences range from 5 to 15 years
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Restitution for improperly obtained benefits
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Supervised release following incarceration
Professionals who knowingly assist in fraudulent claims—such as representatives, doctors, or other individuals submitting false documentation—may also face criminal liability.
Potential penalties for these individuals include:
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Up to ten years in federal prison
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Significant criminal fines
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Professional disciplinary consequences
Federal sentencing often depends on factors such as:
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The total amount of financial loss
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The duration of the fraudulent conduct
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The defendant's criminal history
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Whether multiple victims were involved
Defending Against Federal Social Security Fraud Charges
Like other fraud offenses, Social Security fraud requires the government to prove criminal intent beyond a reasonable doubt.
To secure a conviction, prosecutors must show that the accused knowingly made a false statement or misrepresentation with the intent to obtain benefits they were not entitled to receive.
Common defense strategies include:
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Lack of intent to defraud
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Honest misunderstanding or mistake
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Insufficient evidence of false statements
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Statements that did not affect benefit eligibility
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Reliance on incorrect advice from a third party
For example, a person may reasonably believe the information they provided in an application was accurate at the time it was submitted. In other cases, a false statement may have been made but did not actually affect eligibility for benefits.
These issues can be critical when defending against federal fraud allegations.
Speak With a Federal Criminal Defense Lawyer
Social Security fraud investigations often involve extensive financial records, benefit applications, and medical documentation. Early legal representation can be critical when facing federal allegations.
An experienced federal criminal defense attorney can evaluate the evidence, identify weaknesses in the prosecution's case, and develop a strategic defense.
The Hedding Law Firm represents individuals accused of federal fraud offenses in Los Angeles and throughout California. Contact our office for a free case evaluation.
Frequently Asked Questions
What qualifies as Social Security fraud?
Social Security fraud occurs when someone intentionally provides false information or conceals important facts to obtain benefits from the Social Security Administration.
Can you go to prison for Social Security fraud?
Yes. Depending on the law violated and the amount of financial loss, federal prison sentences can range from several years to more than a decade.
What agencies investigate Social Security fraud?
Investigations are typically conducted by the Social Security Administration Office of Inspector General and the Department of Justice.
Is failing to report income considered Social Security fraud?
Yes, if someone intentionally fails to report employment income or other information that affects eligibility for benefits.
Can you be charged even if benefits were never paid?
Yes. Attempting to obtain benefits through false statements or fraudulent representations may still result in federal criminal charges, even if the Social Security Administration never issued payments.
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