CHICAGO — Federal authorities arrested an employee of the Social Security Administration and four others in Chicago Wednesday for allegedly handing out nearly $2 million in fraudulent benefits in exchange for bribes, according to a press release from federal prosecutors.
Jayson Cruz, a 39-year-old benefits authorizer who worked at the Social Security Administration’s Great Lakes Program Service Center in Chicago, was charged with 10 counts of wire fraud for handing out extra benefits to about 154 people, the press release said, citing the recently unsealed federal indictment.
U.S. attorneys also charged four of Cruz's alleged colleagues — 41-year-old Monica Knox-Sumrell; 33-year-old Vonzell White; 37-year-old Michael Elarde; and 36-year-old Jerry Brown Jr. — each with two counts of wire fraud. All five are Chicago residents.
The indictment alleges that the four employees "recruited recipients" of social security benefits to receive additional payments on top of what they were actually owed. Then, they allegedly collected most of the extra money back from them.
Cruz made fraudulent payments to the four others by representing them as relatives of deceased beneficiaries who were owed Social Security money, according to prosecutors.
In order to avoid scrutiny from supervisors, the indictment alleges, Cruz made all of his payments in amounts slightly under $6,000. Based on Social Security Administration rules, Cruz would need approval from a supervisor to authorize a payment above $6,000, according to prosecutors.
All five defendants pled not guilty Wednesday, and they were released without bail, the press release said.
Prosecutors are seeking the return of $1,981,290 allegedly stolen from the government as well as a residential property in Chicago. On top of that, each count of wire fraud carries a maximum sentence of 20 years in prison.
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