Can You Go to Jail for Not Reporting Income to the Government While on Disability?

We often associate theft with a physical act such as an armed robbery. But as far as the law is concerned, theft can also be the result of non-violent fraudulent activity. For example, if you obtain someone else’s property by making false statements or promises, that is considered theft by deception, and it is still subject to criminal prosecution.

Georgia Man Received 27 Months for Failing to Report Post-Disability Income

Of particular note, a Georgia resident is likely to face criminal charges arising from theft by deception if their alleged victim is the government itself. State and federal prosecutors often go after individuals suspected of accepting government benefits they are not legally entitled to. This includes situations where someone initially qualified for such benefits but later became ineligible through a change in circumstances that was not reported to the government.

Here is a recent example of what we are talking about. In United States v. Hill, federal prosecutors in Georgia charged a former railroad employee with “theft of government property” for illegally receiving disability benefits. The defendant started receiving such benefits in 2021 after the Railroad Retirement Board (RRB) determined he had a disability and was therefore “unable to perform substantial gainful activity.”

RRB benefits are conditioned on a recipient reporting any change in their employment status. This includes acquiring an ownership interest in a family business. In this case, the defendant helped his ex-wife start a janitorial business. The defendant did not report this business interest, or the income earned from it, to the RRB. This prompted a federal investigation and ultimately the theft of government property charge. A grand jury also indicted the defendant with making false claims and wire fraud.

At trial, the government presented evidence showing the defendant was not simply a passive investor in his ex-wife’s business. He was an active participant, serving as the company’s chief financial officer. Furthermore, he reported substantial income from the business when applying for a loan. However, he never reported this income to the RRB.

A federal jury convicted the defendant on all charges. The trial judge sentenced the defendant to 27 months in prison. The United States 11th Circuit Court of Appeals subsequently rejected the appeal of the defendant’s conviction and sentence. Specifically, the 11th Circuit held the evidence presented at trial was sufficient to support the jury’s guilty verdict. Put simply, the government proved the defendant earned enough money from the cleaning business such that he was no longer eligible for disability benefits. By failing to notify the government of this fact, the defendant committed theft.

Contact Hawkins Spizman Trial Lawyers Today

Even when you are not dealing with the government, the use of fraud or deception to obtain money from any person or private business can still land you in serious trouble with police and prosecutors. If you find yourself dealing with such charges, it is best to speak with a qualified Atlanta theft lawyer right away. Contact Hawkins Spizman Trial Lawyers today. We serve clients throughout Georgia including Atlanta, Dunwoody, Alpharetta, Cobb County, Fulton County, Gwinnett County, Johns Creek and Sandy Springs.

Source:

media.ca11.uscourts.gov/opinions/pub/files/202310289.pdf