A Kansas woman was sentenced to two years of probation and ordered to pay $316,570 in restitution for defrauding the Social Security Administration (SSA) by not reporting that her husband was in prison and illegally collecting his benefits for a decade.

According to the Department of Justice,  Carolyn Phillips, 79, of Lyons pleaded guilty to one count of
unauthorized acquisition of benefits.

Phillips’ husband was incarcerated from August 2014 to August 2024 for criminal offenses. Prior to going to prison, he was receiving Social Security retirement benefits. In March 2015, Phillips asked SSA to designate her as her husband’s payee allowing her to receive benefits on his behalf. The request form explicitly states the applicant must report if the claimant is “confined to jail, prison, penal institution or correctional facility”. Phillips did not report that her husband was incarcerated. Instead, she falsely indicated that her husband had a mental impairment and that they lived together with her as his caretaker.

SSA approved her request.

From 2015 to 2024, Phillips admits she fraudulently received $316,570 in SSA benefits. Records show $2,437 was deposited into her husband’s prison account from 2014 until 2024.

“The government doesn’t allow incarcerated individuals to continue receiving public benefits like Social Security because taxpayers are already footing the bill for their housing, meals, and healthcare while they are inmates,” said U.S. Attorney Ryan A. Kriegshauser. “The DOJ’s National Fraud Enforcement Division was created to help root out people who have been getting away with scamming the system for years.”
The Social Security Administration-Office of Inspector General (SSA-OIG) investigated the case.