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Press Release

Texas Man Pleads Guilty in New Mexico to Scheme to Defraud Social Security Administration

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

ALBUQUERQUE – Dannelly Labogin, 68, of Amarillo, Texas, pleaded guilty today in federal court in Las Cruces, N.M., to defrauding the Social Security Administration (SSA) of Social Security Child’s Insurance Benefits.  Under the terms of his plea agreement, Labogin will be required to pay $82,483.00 in restitution to the SSA.

Labogin was charged in a two-count indictment on Sept.22, 2015.  Count 1 of the indictment alleged that between June 2007 and Nov. 2013, Labogin executed a scheme to defraud the SSA by continuing to receive benefits on his daughter’s behalf even though the child had been adopted by others and was no longer in his care.  As a result of this scheme, Labogin fraudulently received an aggregate of $82,483.00.  Counts 2 through 36 of the indictment alleged that Labogin knowingly stole and embezzled an aggregate of $26,633.00 in Social Security Child’s Insurance Benefit payments from the SSA between Oct. 1, 2010 and Dec. 3, 2013.  Labogin was arrested in Amarillo on Dec. 4, 2015, and was transferred to the District of New Mexico on Jan. 5, 2016, to face the charges against him. 

During today’s plea hearing, Labogin pled guilty to Count 1 of the indictment.  In entering the guilty plea, Labogin admitted that from June 2007 through Nov. 2013, he received Child’s Insurance Benefits from the SSA on behalf of his biological daughter even though he did not have custody of his biological daughter at the time he applied for and received the benefits.

At sentencing, Labogin faces a statutory maximum penalty of five years in prison.  The sentencing hearing has yet to be scheduled. 

This case was investigated by the SSA, Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.

Updated February 23, 2016

Topics
Financial Fraud