Attorney General Loretta Lynch’s Department of Justice, already facing the possibility that the long-awaited FBI report may recommend an indicting former Secretary of State and current candidate for the Democrat nomination for the presidency Hillary Clinton, will be handling a major Social Security fraud case stemming from a two-year Congressional investigation triggered by a whistleblower.
A federal indictment was issued charging three men with receiving more than $10 million from a conspiracy to defraud the Social Security Administration.
Senators Tom Coburn (R-OK), who is also a physician, and John McCain (R-AZ) led the effort to uncovered a long-term conspiracy between an attorney, physicians and an administrative judge that netted the trio millions in fraudulently filed disability claims.
The 160-page report from the Department of Homeland Security Committee found that the attorney who spearheaded the fraud ring, “used his law practice to exploit key vulnerabilities in a critical federal safety net program and became wealthy in the process.”
The report has forced the government to admit that rampant fraud is prevalent in the disability benefit program.
In one meeting of the committee, the ringleader was accused by senators of shredding 26,000 pounds of documentary evidence during the investigation.
The scheme involved Eric C. Conn, a Kentucky attorney who prepared and submitted more than 2,000 fraudulent claims with falsified medical documentation provided by several physicians who were in on the conspiracy.
Federal administrative judge, David B. Daugherty, would assign hundreds of the bogus files to his own docket and approve them in what the indictment termed “assembly line fashion” and Conn would recover a portion of the disability payment as a fee, which was shared among the conspirators.
Many of those whose applications were approved by Judge Dougherty are still receiving disability payments from the Social Security Administration.
The Committee found that applicants with legitimate claims who retained Conn as counsel, had been directed by him the doctors he recommended, and were innocent victims in the scheme.
Via US Herald