A woman from St. Peters, Missouri has pleaded guilty to a fraud scheme in which she obtained more than $231,000 in disability payments intended for her mother. The woman’s mother died nearly 50 years ago. 68-year-old Marsha Gail Coy pleaded guilty to a federal information charging her with one count of bank fraud.
Coy’s mother worked for the Kirkwood, Missouri R-VII School District until she retired with the Public School Retirement Systems of Missouri in 1968. The non-Social Security contributory system provides retirement, disability and survivor benefits. Coy’s mother died on September 23, 1696.
Nevertheless, PSRS unwittingly continued making disability benefit payments to her bank account. Before learning that she had passed away on May 1, 2018, PSRS made 584 disability benefit payments. The payments totaled $382,933. Coy’s father was admitted to a long-term care facility in April of 1996. He lived there until the last few days prior to his death in 1999.
According to the guilty plea, Coy admitted to engaging in a fraud scheme from April 1996 to May 1, 2018. Under the terms of the plea agreement, Coy will forfeit $231,148 to the government. Coy will face a maximum sentence of 30 years in federal prison without parole. Further details have been made available here.