East Chicago woman sentenced to over one year in prison for wire fraud

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M. Scott Proctor U.S. Attorney for the Northern District of Indiana | Official website

East Chicago woman sentenced to over one year in prison for wire fraud

Rose Henderson, a 62-year-old resident of East Chicago, Indiana, was sentenced on Mar. 18 to 12 months and one day in prison after pleading guilty to wire fraud, according to United States Attorney Adam L. Mildred.

Henderson was also ordered by United States District Court Judge Gretchen S. Lund to pay $364,779 in restitution. The case highlights the consequences of defrauding government assistance programs intended for vulnerable individuals.

Court documents show that Henderson became her mother's representative payee for Social Security benefits in 1995 and continued collecting those benefits after her mother passed away the following year. For more than two decades, she submitted false paperwork to the Social Security Administration (SSA), claiming her mother was still alive and that she used the funds for her mother's benefit. Instead, Henderson spent the money on personal expenses such as cruises, trips to Las Vegas, and large cash withdrawals at casinos in northwest Indiana.

"Henderson stole hundreds of thousands of dollars from a government assistance program designed to help the most vulnerable members of society and used it for decades to support a lifestyle that is beyond the reach of many members of the community," said United States Attorney Mildred. "Through the hard work of the Office of the Inspector General of the Social Security Administration, and the United States Attorney’s Office, Northern Division, the Defendant was arrested, prosecuted, and sentenced.  We will, along with our law enforcement partners, will continue to hold accountable those who defraud government programs and put critical benefits at risk."

The investigation was conducted by the Social Security Administration's Office of Inspector General. Assistant United States Attorneys Steven J. Lupa and Zachary D. Heater prosecuted this case.