MINNEAPOLIS—Yesterday in federal court,
a 51-year-old Hermantown man pleaded guilty to stealing more than $144,000 in
Social Security disability benefits. James William Smith pleaded guilty to one
count of theft of government funds in connection to the crime. Smith, who was
indicted on April 16, 2012, entered his plea before United States District
Court Judge John R. Tunheim.
In his plea agreement, Smith admitted
that on March 16, 2006, he applied for Social Security benefits, claiming he
suffered from memory loss that made it impossible to work. Smith also admitted
that during a medical evaluation, he falsely reported his medical condition,
altering his speech, writing, and appearance. Based on that evaluation, Smith
received a diagnosis of early-onset Alzheimer’s disease and began receiving
disability payments from the Social Security Administration (SSA).
For his crime, Smith faces a potential
maximum penalty of 10 years in federal prison. Judge Tunheim will determine his
sentence at a future hearing, not yet scheduled. This case is the result of an
investigation by the SSA-Office of Inspector General, the Federal Bureau of
Investigation, and the Hermantown Police Department. It is being prosecuted by
Assistant U.S. Attorney Clifford B. Wardlaw.
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