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Waldoboro Man Sentenced for Social Security Fraud

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 PORTLAND Maine: A Waldoboro man was sentenced today in federal court for Social Security fraud, Acting U.S. Attorney Donald E. Clark announced.

Chief U.S. District Judge John D. Levy sentenced Wayne Flaherty, 53, to three years of probation, with a condition of 240 hours of community service. He was also ordered to pay $141,214.00 in restitution to the Social Security Administration (“SSA”). Flaherty pleaded guilty on January 26, 2021.

According to court records, from about February 2000 through May 2018, Flaherty, a recipient of Supplemental Security Income (“SSI”), concealed his receipt of money from another individual to maintain his eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled or elderly. Flaherty was reportedly receiving at least $1,500 per month from this individual at the time he applied for benefits, but the amounts increased over the years, with Flaherty receiving a total of at least $846,615.18 from February 2012 through July 2017. The individual also provided Flaherty with a home in February 2012.

Flaherty did not notify SSA that he was receiving these payments at any point during the time he was receiving SSI payments, despite knowing he was required to report them. At an interview with law enforcement agents, he admitted to concealing this information from SSA because he was afraid his benefits would have stopped.

SSA’s Office of the Inspector General, the Maine Department of Health & Human Services, the Lincoln County Sheriff’s Office and the Knox County Sheriff’s Office investigated the case.


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