NewburyportNews.com, Newburyport, MA

Local News

June 29, 2013

Port man pleads guilty to fraud

NEWBURYPORT ­­— A Newburyport man has pleaded guilty to stealing $169,000 from Social Security, by collecting benefits that were intended for his deceased mother.

John “Jay” Flaherty, 61, is required to pay back the money, and will be sentenced in October.

Court documents state that Flaherty’s mother, Eileen Flaherty of Woburn, died on June 3, 1999. She had been receiving widows benefits through the Social Security Administration. By law, survivors are required to contact the administration so that the benefit payments will stop.

But that didn’t happen in this case, and the Social Security Administration continued to deposit money into her account. A year later, the administration received a request to deposit the funds into a joint bank account held by Jay Flaherty and his mother. Over the course of the next 12 years, some $168,830 was deposited into the account.

Court documents don’t make clear how the administration discovered that Flaherty was fraudulently collecting benefits. The benefits were halted in August, 2012.

1
Text Only | Photo Reprints

Port Pics
AP Video
Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction Malaysian PM: Stop Fighting in Ukraine Cantor Warns of Instability, Terror in Farewell Ravens' Ray Rice: 'I Made a Huge Mistake' Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN
Special Features