Three people have been indicted for defrauding over 750 elderly and disabled Tucson people while operating a representative payee business; they are also accused of embezzling money from the accounts of the recently deceased.
The Attorney General’s Office says Robert Lee Skaggs, 57, Jo Ann Skaggs, 53, and Ray T. Skaggs, 41 have been charged with Conspiracy, Mail Fraud, theft and Embezzlement of Social Security Funds by a federal grand jury in Tucson.
The indictment alleges that the Robert Lee Skaggs was the owner of Scope Payee Services, which misused over $5 million of beneficiary funds and created a variety of false documents to hide the misuse. Jo Ann Skaggs and Ray T. Skaggs allegedly worked as payee coordinators.
The Attorney General’s Office also accuses the three of embezzling money from accounts of people who died while Scope was their representative payee.
“Over 750 elderly and disabled people relied upon the business operated by the Defendants to act as their representative payee, to hold their money in trust,” says United States Attorney Dennis K. Burke. “The alleged misuse of these funds resulted in losses of over 1.3 million dollars from people who were among the most vulnerable in our society.”
If convicted, the defendants could face up to 20 years in prison and a $1,000,000 fine. The three are scheduled to appear in U.S. District Court on Nov. 5.
Source: KVOA.com, Tucson Channel 4, NBC Television Affiliate
Credit to: Arizona Daily Star who first broke this story.
Social security recipients are now in big trouble. One mentally ill person owes over $1200 to Cox cable since Scope did not pay his bills. Will these companies step up and help ?