$550M Fraud Scheme Catches Up To Former Administrative Law Judge

By on May 15, 2017

May 16, 2017

A former administrative law judge for the Social Security Administration has admitted to taking part in a scheme to fraudulently claim more than $550 million in federal disability payments. David Black Daugherty pleaded guilty to two counts of receiving illegal gratuities; the 80-year-old will be sentenced in August. Daugherty served as an administrative law judge for more than 20 years, focusing primarily on adjudicating disability claims. He admits that from November 2004 to April 2011 he accepted more than $609,000 in cash from a Social Security disability lawyer for awarding benefits to claimants in approximately 3,100 cases. Daugherty would seek out the cases for Eric Christopher Conn, then contact Conn and tell him what type of medical evidence to submit in support of disability findings. He would then award benefits without holding hearings. Conn received at least $7.1 million in representative fees from the SSA.

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