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Press Release

Scottsbluff Man Sentenced for Theft of Government Funds

For Immediate Release
U.S. Attorney's Office, District of Nebraska

United States Attorney Deborah R. Gilg announced that Frank A. Sanchez, Jr., 42, formerly of Scottsbluff, Nebraska, was sentenced today in Lincoln, Nebraska, to 90 days of home confinement by United States District Judge John M. Gerrard, for theft of government funds.  Along with the home confinement, Sanchez was ordered to make restitution in the amount of $92,064.00, perform 150 hours of community service and to serve a term of five years on supervised release. 

Frank Sanchez, Jr., was employed by Burlington Northern Santa Fe (BNSF) from August of 2004 through July of 2007, before filing for a Railroad Retirement Disability Annuity in November , 2007.  The disability was based on numerous medical conditions and, after review, the U. S. Railroad Retirement Board (RRB) approved his claim and Sanchez began receiving an annuity.

In June of 2009, Sanchez completed a “Continuing Disability Report” at the request of the RRB.  On that form, Sanchez stated there had been no change in his condition and that he had not returned to work.  Sanchez then signed and submitted that report to the RRB.  In April of 2012, Sanchez was again asked to complete a “Continuing Disability Report”.  He failed to return the form to the RRB and he was notified in May of 2012 that his benefits would be discontinued. 

Upon further investigation, the RRB discovered that Sanchez had indeed returned to work in August of 2009 and was currently employed again by BNSF.  Once contacted, Sanchez admitted to receiving the disability annuity, provided a statement admitting his actions to the investigators, and demonstrated a willingness to make restitution in full.  Sanchez’s disability annuity was officially discontinued in August of 2009.  Computations by investigators determined that during the period he was receiving the disability annuity he fraudulently received $92,064.00.

The case was investigated by the Office of the Inspector General of the Railroad Retirement Board.

Updated February 12, 2016

Financial Fraud