Donald Felix Zampach received more than $830,000 in social security and military retirement from his mother. He faces 25 years in prison.
A California man faces 25 years in prison after pleading guilty to money laundering and social security fraud in federal court this week.
Originally from Poway, north of San Diego, Donald Felix Zampach concealed the death of his mother for more than thirty years, while collecting his Social Security and military retirement benefits.
In total, the man received more than 830,000 dollars in public funds (equivalent to 760,000 euros), explained Randy Grossman, the attorney general for the Southern District of California, in a statement published last week.
“This crime is considered the longest and largest fraud of its kind in this district,” the magistrate said.
“Defendant did not just passively cash checks sent to his deceased mother. This is an elaborate fraud that spans more than three decades and required aggressive actions and deception to maintain the ruse,” he wrote.
A 33-year-old scam
The scam began in 1990, when Donald Felix Zampach’s mother died in Japan. Just before his disappearance, the now 65-year-old transferred ownership of the family home in Poway to himself and filed for bankruptcy without reporting either ownership or government benefits.
After his mother’s death, he kept her bank accounts and forged her signature on certificates of eligibility. The goal? Continue to collect her widow’s pension from the Social Security Administration and an annuity from the Financial Accounting Service of the US Department of Defense.
Donald Felix Zampach also said he used the identity of the deceased to open credit accounts with at least nine financial institutions, which earned him more than 28,000 dollars (about 25,500 euros), reports USA Today. He said he laundered the money to pay off the mortgage on his Poway home.
“He filed false tax returns, posed as his mother and signed her name on numerous documents, and when investigators caught up with him, he continued to claim she was still alive.” said Randy Grossman.
As part of the plea deal, the man agreed to pay back $830,000 and have his home confiscated as restitution. He was released on bail pending a sentencing hearing on September 20.
“We will continue to pursue and hold accountable those who defraud the Social Security Administration,” said its inspector general, Gail S. Ennis.
According The Guardianthe United States had nearly 70 million Social Security beneficiaries in 2020. The administration says the rate of fraudulent incidents is less than 1%.
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2023-07-04 10:48:49
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