The Social Security Administration provides monthly payments to people with limited income and resources who are 65 or older, blind, or have a disability. However, children younger than age 18 are eligible if they have combination of medical and financial conditions that meet Social Security’s definition of disability. Mistie Lynn Knapton received these Supplemental Security Income benefits on behalf of five of her children. As a single mom with child support as the only income, Mistie met the financial conditions for SSI benefits. Too bad she left out a lot of details in the application.
In May of 2009, Mistie told SSA that she paid rent of $1,400 a month and that the father of her children, Travis, did not live with them. In truth, Mistie and Travis jointly owned the house, and Travis was very much a part of the household. Facts that were discovered in a redetermination of benefits conducted by SSA in September of 2020. SSA analyzed the Knapton’s assets and determined that from April 2011 through February 2024, the Knapton children would not have qualified for SSI benefits and had fraudulently received $196,575 in SSI benefits.
The SSI income was paid into separate bank accounts for each child and managed by Mistie. Mistie frequently shared and transferred these fraudulently obtained proceeds into Travis’ bank account. Travis then used the stolen money to purchase homes and vehicles, pay for general living expenses and other items for himself and his family like ATVs, a motorcycle, and a jet ski.
On September 16, 2024, Mistie Lynn Knapton and her husband, Travis Ray Knapton each pleaded guilty to theft of government money.
The U.S. Attorney’s Office is prosecuting the case. The SSA Office of Inspector General and Montana Division of Criminal Investigation conducted the investigation.
Today’s Fraud of The Day is based on article “Kalispell couple admit defrauding Social Security Administration” published by KPAX News on September 16, 2024.
A Flathead County couple has admitted to stealing nearly $200,000 from the Social Security Administration by falsely reporting their living and financial situation. U.S. Attorney Jesse Laslovich said in a news release that Mistie Lynn Knapton, 49, and her husband, Travis Ray Knapton, 50, of Kalispell each pleaded guilty to theft of government money in separate hearings.
Mistie Knapton pleaded to a felony charge and faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Travis Knapton pleaded to a misdemeanor charge and faces a maximum of one year in prison, a $100,000 fine and one year of supervised release.
