LITTLE ROCK — A Forrest City attorney and an employee in his office have been indicted on federal Social Security fraud charges, the U.S. Attorney for the Eastern District of Arkansas said.
Barry Michael Easley, 62, and Marie Diane Douglas, 61, are both facing charges of aiding and abetting Social Security fraud and aiding and abetting theft of government property. Douglas is also charged with one count of making a false statement.
Douglas reportedly began working at Easley's law office in August 2002, a year after she began receiving Social Security disability payments that limited the amount of money she could earn.
According to the indictment, portions of Douglas' salary were paid to other individuals for her benefit to avoid going over and a $100,000 bonus paid to her was structured so it appeared to be a civil settlement.
Authorities allege Douglas collected more than $57,000 improperly through the setup.
“The payment of Social Security Disability benefits is contingent upon an individual’s inability or diminished ability to earn wages because of physical or mental infirmity," U.S. Attorney Jane Duke said in a news release. "To claim such benefits while simultaneously earning the amounts of wages and bonuses that Ms. Douglas did, is just fraudulent.”
The social security fraud count carries of penalty of up to 5 years in prison and a fine of up to $250,000. The theft charge carries a penalty of up to 10 years in prison and a fine of up to $250,000.