Local Man Convicted In Social Security Fraud Scheme

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TRENTON — A Monmouth County man has been found guilty of defrauding the Social Security Administration out of more than half a million dollars in disability benefits, federal prosecutors said.

Steven D. Stankovits, 57, of Matawan, was convicted following a four-day trial in federal court in Trenton. A jury found him guilty of four counts of wire fraud and one count of making false statements related to his receipt of Social Security Disability Insurance benefits. The case was heard before U.S. District Judge Zahid N. Quraishi.

Evidence presented at trial showed Stankovits was approved for disability benefits in 2010, with payments retroactive to 2007, after claiming severe physical limitations that prevented him from working. Prosecutors said those claims included assertions that he could not sit comfortably for more than 15 minutes, struggled with basic tasks like dressing himself, and was unable to lift light objects or participate in activities such as skiing.

Authorities said those statements were false and were repeatedly reinforced by Stankovits over the next decade through additional submissions to the agency.

In reality, prosecutors said, Stankovits worked as a licensed funeral director at two funeral homes, performing physically demanding tasks such as lifting heavy caskets, shoveling snow and climbing ladders. Evidence also showed he traveled extensively for ski trips, including visits to Italy, California and Utah, and purchased a season ski pass in Vermont.

As a result of the fraudulent claims, the Social Security Administration paid him more than $585,000 in benefits, officials said.

“For nearly 15 years, Steven Stankovits exploited the Social Security Administration’s disability insurance program,” U.S. Attorney Robert Frazer said in a statement. “This conviction sends a clear message that those who obtain government benefits through deception will be held accountable.”

Michelle L. Anderson, a senior official with the Social Security Administration’s Office of Inspector General, said the verdict underscores efforts to protect programs intended for those in genuine need.

Stankovits now faces up to 20 years in prison on each wire fraud count and up to five years on the false statement charge. He could also be ordered to pay significant financial penalties.

The investigation was conducted by the Social Security Administration Office of Inspector General and the agency’s Cooperative Disability Investigations Unit in New Jersey. The case is being prosecuted by Assistant U.S. Attorneys Eli Jacobs and Alison Thompson.