Leaders of the House Ways and Means Committee hailed the Department of Justice announcement on Monday of a lawyer’s guilty plea for his role in a massive fraud case involving more than $550 million in Social Security disability payments.
Kentucky-based attorney Eric Conn pleaded guilty in federal court for a scheme involving the federal disability payments for thousands of claimants. Conn, along with a retired Social Security Administrative Law Judge and a psychologist, was indicted on April 5, 2016 in a Social Security disability fraud scam that took place from 2004 to 2016.
The case was highlighted in past years by former U.S. Sen. Tom Coburn (R-OK) in hearings and reports related to his multi-year review of the insurance disability system.
“Our seniors and individuals with disabilities rely on Medicare to receive their healthcare benefits and individuals who steal from them and the American taxpayer must be brought to justice,” said U.S. Rep. Pat Tiberi (R-OH), the chairman of the Subcommittee on Health. “I applaud the hard work of all the federal agencies involved in the investigation and prosecution of these individuals. I look forward to continuing to work with my colleagues on the Ways and Means Committee to further restore the integrity of our Medicare program for those who truly need it.”
Investigating and prosecuting people who fraudulently obtain Social Security disability benefits is a key part of restoring public trust and integrity in those programs, said Oversight Subcommittee Chairman Vern Buchanan (R-FL).
“Eric Conn and his associates were able to fraudulently enroll thousands of people in federal benefit programs, making millions for themselves,” Buchanan said. “I am glad to see that fraudsters are being held to account for their actions and I commend the law enforcement agencies involved in the investigation and prosecution of these criminals.”
Conn was an attorney working for a law firm in Kentucky for more than 20 years that primarily represented individuals seeking Social Security disability benefits. In his plea, Conn admitted to submitting falsified medical documents and to paying former SSA administrative judge David Daugherty $10,000 per month to award benefits to more than 1,700 claimants based on those falsified documents.
U.S. Rep. Adrian Smith (R-NE), the chairman of the Subcommittee on Human Resources, said rooting out fraud in Social Security disability insurance programs is about protecting current and future beneficiaries, in addition to going after bad actors like Conn.
“When benefits are paid to individuals who are not eligible for the program, it reduces resources for those who truly need access to these benefits and frustrates taxpayers who are expected to foot the bill,” Smith said. “I commend the Department of Justice for their efforts in this case and others as we aim to protect both beneficiaries and taxpayers.”
Meanwhile, U.S. Rep. Sam Johnson (R-TX), the chairman of the Subcommittee on Social Security, called Conn’s plea an important step in the fight against Social Security disability fraud.
“For years, Eric Conn broke the law to get people on disability benefits,” Johnson said. “Worse, some of his former clients deserve the benefits they receive but didn’t know they were working with a crooked lawyer. Americans have the right to expect that those in positions of trust, like lawyers, aren’t trying to cheat that system and that disability benefits only go to those who deserve them.”