Woman Pleads Guilty to Defrauding Government of $80,000

Memphis, TN – A woman who defrauded the government of $80,000 by utilizing her deceased boyfriend’s retirement insurance benefits for personal expenses has pleaded guilty to theft of government money. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.

According to information presented in court, Marcia Daniels, 58, of Memphis, Tennessee, continued to receive her boyfriend’s retirement insurance benefits subsequent to his death.

James Henry Johnson died on June 2, 2011. Daniels was listed as the informant on Johnson’s death certificate. At the time of his death, Johnson was receiving approximately $1,800 in Title II Retirement Insurance Benefits (RIB) via monthly checks mailed to a P.O. Box in Memphis. The checks continued to be deposited into Johnson’s First South Credit Union account after his death.

Bank tellers identified Daniels as the one who deposited Johnson’s checks. Bank records reflect that between July 1, 2011 and March 3, 2015, approximately $80,000 of Social Security Administration (SSA) checks were deposited and cash withdrawals were made from ATMs in Memphis and at several casinos in Tunica, Mississippi. The checks were endorsed with an "X" for Johnson’s signature (his signature card on file with the bank reflected X as his signature), with Marcia Daniels signed beneath the X.

On Wednesday, March 16, 2016, Daniels pled guilty before U.S. District Judge Samuel H. Mays Jr. to one count of theft of government funds.

Daniels is scheduled to be sentenced on Thursday, June 16, 2016. She faces up to 10 years imprisonment.

This case is being investigated by SSA – Office of the Inspector General.

Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.