A New York woman is accused of signing her dead mother-in-law’s name on checks for nearly 17 years while hundreds of thousands of dollars in Social Security and pension payments continued flowing into the woman’s bank account.
Kimberly Cardella, 59, of Rensselaer, pleaded not guilty in federal court this month to bank fraud, theft of government property and aggravated identity theft.
Her mother-in-law died in 2009. Neither the Social Security Administration nor the New York State and Local Retirement System had been notified of the death, according to the Times Union.
Prosecutors contend Cardella then continued using the account, signing her mother-in-law’s name to checks and taking more than $668,000 in government benefits before the alleged scheme was uncovered.
The Money Kept Coming
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The government alleges more than $530,000 came from Social Security and another $138,000 from the state retirement system.
An earlier CBS6 Albany report said prosecutors accused Cardella of writing checks from her mother-in-law’s account for her own use and signing the dead woman’s name.
The allegations cover a period stretching from the woman’s death in 2009 until nearly 17 years later.
The case was investigated jointly by the Social Security Administration’s Office of the Inspector General and the New York State Comptroller’s Office.
Cardella was arraigned Sept. 18 before U.S. Magistrate Judge Daniel J. Stewart and released on her own recognizance, CBS6 reported.
How It Lasted
The duration of the alleged scheme left another question: How could payments meant for a person who died in 2009 continue for so long?
Nelson Sheingold of the state comptroller’s office told CBS6 Albany that a person’s death does not necessarily become known to a retirement system automatically.
“Not every death is going to automatically become evident or be reported to the retirement system,” Sheingold said.
But investigators do not describe Cardella’s case as a simple failure to notify the agencies.
Sheingold said a scheme can remain hidden when someone goes to unusual lengths to preserve the appearance that the beneficiary is still alive, including maintaining bank accounts and forging signatures.
“When people take heroic and extreme efforts by keeping bank accounts open, by forging the identity and forging the signatures on checks and making all indications that the person is still alive, it takes deep analysis like we did here in investigation sometimes to find it,” he said.
In Cardella’s case, prosecutors allege she repeatedly signed her mother-in-law’s name on checks.
“It’s kind of hard to say that that’s an administrative error or that some sort of accident when you’re signing a deceased loved one’s name to check,” Sheingold said.
A Separate Identity Charge
The alleged signatures also figure into the aggravated identity theft charge.
CBS6’s earlier report quoted First Assistant U.S. Attorney John A. Sarcone III as saying prosecutors believe Cardella effectively assumed her mother-in-law’s identity to obtain money intended for eligible beneficiaries.
The government is also seeking forfeiture of $530,735 associated with the alleged Social Security theft.
The bank fraud charge carries a statutory maximum of 30 years in prison. Theft of government property carries up to 10 years, while aggravated identity theft carries a mandatory consecutive two-year term if Cardella is convicted of that offense.
Those figures describe the statutory maximum penalties and are not a prediction of any sentence.
The Times Union reported that attorney James C. Knox represents Cardella and did not immediately respond to that outlet’s request for comment.
Cardella has pleaded not guilty. The charges are allegations, and she is presumed innocent unless proven guilty.