An Illinois man has been convicted of defrauding a public retirement system by continuing to collect pension payments on behalf of deceased beneficiaries. According to the Illinois Attorney General’s Office and state investigators, the defendant failed to report multiple deaths and actively concealed beneficiary status to keep monthly payments flowing into bank accounts he controlled.
Over several years, investigators say more than $450,000 in improper pension payments were issued. The scheme relied on outdated beneficiary records, delayed death notifications, and limited cross-checking between pension systems and vital records databases. In some cases, the defendant submitted falsified affidavits to confirm continued eligibility.
The fraud came to light after a routine audit identified payments issued to individuals whose Social Security numbers appeared in death records. Further investigation revealed repeated discrepancies between pension rolls and state vital statistics data.
“Public retirement systems depend on accurate data to protect both beneficiaries and taxpayers,” said Illinois Attorney General Kwame Raoul. “This case highlights the real cost of delayed verification.”
Officials emphasized that pension and retirement systems face heightened risk when identity validation and life-status checks are not performed continuously.
Today’s Fraud of the Day is based on reporting from the Illinois Attorney General’s Office regarding public pension fraud.
