Las Vegas Chiropractor/ Boxing Judge Sentenced to 1.5 Years in Prison for Defrauding Social Security Administration
Las Vegas, Nev. – A man who fraudulently collected over $400,000 in Social Security disability benefits while he was working as a chiropractor and boxing judge, was sentenced today to 1.5 years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Paul G. Smith, 66, of Las Vegas, was sentenced by U.S. District Judge Philip M. Pro to 18 months in prison, three years of supervised release, and ordered to pay $435,674 in restitution. Smith pleaded guilty on August 26, 2010, as originally charged, to one count of social security fraud.
Smith received Social Security disability benefits from about September 1994 to December 2005, totaling about $400,000, based on a claim he filed stating that a back injury had affected his ability to work as a chiropractor. While receiving these benefits, Smith continued to act as the owner/manager of a chiropractic business he solely owned in Las Vegas, Rainbow Chiropractic Center. During this time, Smith worked at the business on a regular basis as a manager and supervisor, and regularly withdrew revenues for personal expenses. Smith sold the business for $325,000 in December 2002. Smith also worked as a licensed boxing judge in Nevada on a consistent and ongoing basis for 20 years, from January 1987 until December 2007, and judged approximately 189 fights and received approximately $133,025 in income. Smith failed to provide information about his employment to the Social Security Administration for the purpose of defrauding the government.
Smith was permitted to self-report to prison by July 20, 2011.
The investigation is sponsored by President Barack Obama's Financial Fraud Enforcement Task Force. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
The case was investigated by the Office of Inspector General for the Social Security Administration and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Rob MacDonald.