A Westport, Washington resident has pleaded guilty to defrauding the Social Security Disability program. Derek Gochanour, 50, admitted in U.S. District Court in Tacoma that he failed to inform the Social Security Administration (SSA) of his ability to work and illegally collected $126,928 in benefits. Acting U.S. Attorney Teal Luthy Miller announced the plea.
Gochanour initially applied for disability insurance benefits from SSA in April 2001 due to mitochondrial myopathy, a muscle disease. By January 2003, a court deemed him disabled, allowing him to collect benefits. However, two years later, Gochanour obtained a Merchant Mariner Credential from the U.S. Coast Guard indicating his physical capability for shipboard duties.
In 2012, Gochanour received a medical waiver from the Coast Guard requiring neurological evaluations on his condition's stability to maintain his credential. He provided several evaluations over time.
By 2015, Gochanour and an associate had purchased a charter fishing boat where he served as captain off Westport's coast without reporting any wages for this work. In his plea agreement, Gochanour acknowledged that since at least 2015, his medication and lifestyle permitted him to work several months annually—a fact he failed to report to SSA despite being notified of the requirement.
Gochanour submitted a Continuing Disability Review Report in 2022 that omitted details about his improved health and work as a charter ship captain.
Prosecutors have recommended three months in prison followed by three months of home detention for Gochanour. Chief U.S. District Judge David G. Estudillo will sentence him on June 9, 2025. Social Security fraud carries a maximum penalty of five years imprisonment.
In parallel civil proceedings, Gochanour agreed to pay $253,856 to settle claims with $126,928 designated as restitution for wrongly received benefits.
The investigation was conducted by the Social Security Office of Inspector General (SSA-OIG) and the Coast Guard Investigative Service (CGIS). Special Assistant United States Attorney Jessica M. Ly is prosecuting the criminal case while Assistant United States Attorney Katie Fairchild handled the civil case.
