West Chester Man Defrauds Social Security of $82,000

The U.S. Attorney’s office announced today that West Chester resident Gregory Butcher was sentenced to 18 months in prison after he defrauded the Social Security Administration of over $82,000.

According to the U.S. Attorney’s office, Butcher received disability insurance benefits for a period of almost nine years while working and earning an income.

Butcher was part of a statewide crackdown on Social Security fraud that will result in over $1.7 million in restitution payments.

Butcher himself has been ordered to pay $82,621 in restitution to the Social Security Administration.

“Every year fraudsters steal millions of dollars from the Social Security without any concern for those actually entitled to benefits under the program,” said United States Attorney Zane Memeger in a press release. “Indeed, nearly two million dollars in restitution was ordered last year in this district for fraud schemes involving Social Security.  My office will continue to vigorously prosecute these cases so that taxpayer money is used for the purpose intended, that is, providing needed assistance to retirees, disabled workers, and immediate family members of deceased workers.”

The press release continues:

In addition to the more than $1.7 million dollars in restitution ordered in the last fiscal year, during fiscal year 2010, ordered restitution to the Social Security Administration was $255,341.94, and was $857,844 in fiscal year 2011. 

Nationally, in Fiscal Year 2011, there were more than 103,000 allegations of Social Security fraud, with more than 7,000 criminal investigations resulting in 1,374 convictions and more than $410 million in recoveries, fines, restitution, judgments, settlements, and savings.