Middlesex County woman pleads guilty to social security fraud totaling over $150,000

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Vikas Khanna, U.S. Attorney | U.S. Attorney's Office for the District of New Jersey

Middlesex County woman pleads guilty to social security fraud totaling over $150,000

A Middlesex County resident has confessed to defrauding the Social Security Administration over an extended period by collecting her deceased mother's retirement benefits. Deborah Bailey, 68, from Piscataway, New Jersey, pleaded guilty to theft of public money. The admission was made in the federal court in Trenton before U.S. District Judge Robert A. Kirsch.

U.S. Attorney Alina Habba revealed that Bailey had been improperly receiving Social Security benefits for more than eight years. These benefits belonged to her deceased mother and were directly deposited into the mother's bank account. After the mother's death in 2016, Bailey continued to withdraw funds from this account until 2024, accumulating approximately $150,903.

The charge Bailey faces could result in a maximum sentence of 10 years in prison and a fine up to $250,000. Sentencing is set for August 19, 2025.

The investigation, led by the Social Security Administration - Office of the Inspector General under Special Agent in Charge Amy Connelly, was instrumental in reaching the guilty plea. The case is being prosecuted by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.

Bailey is represented by defense counsel David Holman, Esq.