Inmate And Daughter-In-Law Sentenced In Social Security Scam
David and Kathryn McPeters sentenced for defrauding Social Security of $250,000
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced that David R. McPeters and his daughter-in-law, Kathryn McPeters, were sentenced today in connection with their scheme to defraud the Social Security Administration.
Kathryn McPeters was sentenced to prison for a term of 36 months. Presiding Judge Janet T. Neff remarked that she selected a relatively severe sentence on Kathryn McPeters’ because she targeted a program to help the truly needy. Further, her false testimony during trial "strikes at the very integrity of the criminal justice system." David R. McPeters was sentenced to a term of 33 months, to be served consecutive to the two life sentences he is already serving in the Michigan Department of Corrections.
The two were convicted by a jury in March of defrauding the Social Security Administration between 2006 and 2015, taking in approximately $250,000 before the scheme was discovered. David McPeters has been an inmate of the Michigan Department of Corrections since 1983, when he received two life sentences for murder. Kathryn McPeters is a resident of Battle Creek,Michigan. As a prison inmate, David is prohibited by law from receiving benefits. Kathryn agreed to help him circumvent this rule by applying online for benefits using his name and other information, but hiding the fact that he was incarcerated. The plan was successful and SSA began sending funds to a bank account set up for that purpose by Kathryn. The proceeds were split between the two, with Kathryn receiving the majority of the benefits.
The case was investigated by the Grand Rapids Office of the Social Security Administration, Office of Inspector General. The case was tried by Timothy VerHey, Assistant United States Attorney.