Retired Railroad Worker Sentenced For Disability Fraud

David E. Hunnicutt, age 58, of Macon, Georgia was sentenced September 16, 2015 by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia. Mr. Hunnicutt was sentenced to 12 months and a day imprisonment, he was ordered to pay $273,060.52 in restitution to the Railroad Retirement Board (RRB), and he was ordered to serve one (1) year on supervised release following imprisonment. On April 2, 2015, Hunnicutt pled guilty to an indictment which charged him with the offense of “False Statement,” a violation of 18 U.S.C. § 1001(a)(3). The maximum penalties for violation of this law are five (5) years imprisonment, a $250,000 fine, three (3) years supervised release, and a $100 mandatory assessment fee.          

The RRB takes the place of Social Security for railroad workers and their families. Mr. Hunnicutt was employed as a brakeman for Norfolk Southern Corporation railroad from September 1979 through December 2001. On August 8, 2002, he filed for disability with the RRB.  He reported no self-employment to the RRB on his application. At the time of his application, Hunnicutt was informed that he had a responsibility to report earnings and employment to the RRB, and he was informed that it is a crime to make a false statement to the RRB in order to receive disability benefits. Mr. Hunnicutt was granted disability and received payments from the RRB beginning September 2002 through 2013.           

An investigation by the RRB Office of Inspector General established that Hunnicutt was the incorporator of Mid-Georgia Tractor Service, Inc. (MGTS) in 1997. MGTS was a domestic profit corporation, the business of which was landscape design, lawn maintenance, and irrigation. In addition to being the incorporator of this business, evidence showed that from 1997 through 2013 Hunnicutt was an active participant in the business, that he listed himself as owner of the business on a company internet website, that he was an officer and agent of the business, and that he wrote checks on the business account and received income from the business. On January 16, 2012, Hunnicutt filed a “Continuing Disability Report” with the RRB in which he falsely stated to the Board that he had no self-employment from June 1, 2002 through January 16, 2012.

“Disability payments are a great benefit for those who need them, often meaning the difference between making ends meet and facing personal financial ruin,” United States Attorney Michael Moore said. “The system is geared to help those who need it, not serve as a means of additional income for those who are not truly disabled. Mr. Hunnicutt failed to be honest about his situation. These types of claims put the disability compensation program in jeopardy by draining funds meant to help those who need it. In the Middle District of Georgia we will continue to use our resources to investigate and prosecute fraud with the hopes that these programs continue to be available for those who lawfully seek assistance.”

The case was investigated by the Railroad Retirement Board, Office of the Inspector General. Assistant United States Attorney Paul McCommon prosecuted the case on behalf of the Government.                      

Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.