According to court documents, Cathleen Caraballo obtained a state-issued driver’s license using a victim’s name and information, but with her own picture, of course. Because collecting driver’s licenses isn’t a hobby for fraudsters. It is a means to an end. And for Caraballo, she meant to impersonate that victim for her own financial benefit on the taxpayer’s dollar. In 2009, Caraballo submitted forms to the Social Security Administration, falsely claiming to be the victim, and began receiving Social Security Disability Insurance (SSDI) payments in the victim’s name. After a year, she was approved to receive Medicare benefits, which then paid for her health care expenses based on her false claims. For over a decade, Caraballo received SSDI payments and had her health care expenses covered by Medicare, all under false pretenses.
Caraballo’s scheme could have gone on indefinity. Except the victim attempted to apply for her own government benefits in 2019. One of the unfortunate parts about being the victim, is proving whose identity is who. And Caraballo wasn’t going to go down without a few more lies. When Caraballo was first approached by law enforcement investigators, she lied about her true identity and also presented fraudulent documents to the investigators in an attempt to mask the stolen identity. She even signed a statement claiming that she herself was the victim.
Luckily for the true victim, law enforcement didn’t give up. Caraballo finally admitted to carrying out the fraud scheme for over a decade. As a result of the scheme, Caraballo obtained $152,913.20 in SSDI payments from the Social Security Administration, and Medicare made payments for Caraballo’s health care in the amount of $422,941.89. As part of her plea agreement, Caraballo agreed to pay restitution of these amounts along with three years in prison.
Great job by the U.S. Department of Health and Human Services – Office of Inspector General in this case.
Today’s Fraud of the Day is based on article “Mt. Juliet Woman Sentenced for Health Care Fraud” published by TN Reporter on August 2, 2024.
Cathleen Caraballo, 48, of Mt. Juliet, Tennessee, was sentenced to 37 months in federal prison and ordered to pay $575,855.09 in restitution. The announcement was made by Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Caraballo had previously pleaded guilty to charges of federal wire fraud, health care fraud, and making false statements. Her crimes involved a long-running identity theft scheme wherein she used a stolen identity to apply for and obtain government benefits from Social Security and Medicare. “This sentence holds the defendant accountable for stealing money from taxpayers and lining her pockets with funds intended for those who rely on Medicare and Social Security,” stated United States Attorney Henry C. Leventis. “I commend our law enforcement partners for their tireless efforts to end the defendant’s scheme and to bring her to justice.”
