Former Amherst Resident Convicted of Social Security Fraud

CONCORD, NH – A former resident of Amherst has been convicted in U.S. District Court of Social Security fraud and theft of public funds on June 13, 2016, according to a press release from U.S. Attorney Emily Gray Rice. 

Judith Bayly, 64, applied for Social Security disability benefits in August 2008. Eligibility for disability benefits under the Supplemental Security Income program is based, in part, on the applicant having limited income and resources.  

"At the time she applied, Bayly was receiving monthly alimony payments from her former spouse in an amount that would have rendered her ineligible for any benefits, but she failed to disclose this income to Social Security," Rice stated.  "As part of a review of her claim by Social Security in February 2013, Bayly underreported the amount of alimony she received and falsely reported that her alimony payments had begun one month prior in order to continue to receive disability benefits."  

Bayly concealed the true value of her alimony payments from the Social Security Administration from the time of her application in 2008 until her fraud was uncovered by an investigation in March 2014.  As a result of her concealment, Bayly fraudulently received $17,728 in Supplemental Security Income benefits that she would not have received if she had truthfully reported her receipt of alimony. She is scheduled to be sentenced on Oct. 4, 2016.  She was released on conditions pending sentencing.       

This case was investigated by the Social Security Administration’s Office of the Inspector General and prosecuted by Special Assistant United States Attorney Karen Burzycki.