NASHVILLE – Cathleen Caraballo, 48, of Mt. Juliet, Tennessee, was sentenced to 37 months in federal prison and ordered to pay $575,855.09 in restitution. The announcement was made by Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Caraballo had previously pleaded guilty to charges of federal wire fraud, health care fraud, and making false statements. Her crimes involved a long-running identity theft scheme wherein she used a stolen identity to apply for and obtain government benefits from Social Security and Medicare. “This sentence holds the defendant accountable for stealing money from taxpayers and lining her pockets with funds intended for those who rely on Medicare and Social Security,” stated United States Attorney Henry C. Leventis. “I commend our law enforcement partners for their tireless efforts to end the defendant’s scheme and to bring her to justice.”
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According to court documents, Caraballo obtained a state-issued driver’s license using a victim’s name and information, but with her own picture. She then impersonated the victim. In 2009, Caraballo submitted forms to the Social Security Administration, falsely claiming to be the victim, and began receiving Social Security Disability Insurance (SSDI) payments in the victim’s name. After a year, she was approved to receive Medicare benefits, which then paid for her health care expenses based on her false claims. For over a decade, Caraballo received SSDI payments and had her health care expenses covered by Medicare, all under false pretenses. The scheme was uncovered in 2019 when the real victim attempted to apply for government benefits.
When approached by law enforcement, Caraballo lied about her identity and presented fraudulent documents, even signing a statement affirming she was the victim. Further investigation revealed her decade-long fraud scheme, leading to her confession. Caraballo obtained $152,913.20 in SSDI payments and $422,941.89 in Medicare payments as a result of her fraudulent actions. As part of her plea agreement, she agreed to pay restitution of these amounts.
The investigation was conducted by the U.S. Department of Health and Human Services – Office of Inspector General, and the U.S. Social Security Administration, Office of Inspector General. Assistant United States Attorney Chris Suedekum prosecuted the case.
Source: Read Original Release
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