On August 29, 2024, Richard Muehifarth pleaded guilty to disability fraud, in what federal prosecutors said cost the U.S. Social Security Administration $287,000. Muehifarth cried in court, while he acknowledged that he had fraudulently claimed on Department of Social Security disability applications that he could not do basic chores and needed a cane. Unfortunately for him, federal investigators had him under surveillance and found him doing yard work.
Muehifarth needed a professional to validate his fraudulent application for disability. Federal prosecutors say patients knew to visit the office of Thomas Hobbs, a supposed chiropractor, in order to fake disabilities and get big payouts. Beginning in 2011, Thomas G. Hobbs fraudulently assisted patients in receiving disability benefit payments through the Social Security Administration’s Disability Trust Fund. He would not only prepare disability forms, but he would coach them on how to lie to the Social Security Administration about their ability to perform basic daily tasks such as lifting standing, walking, sitting, remembering, and taking care of their personal needs. He also falsely claimed to have a medical license. But you don’t need a medical license to confirm fraudulent claims on a disability application. Muehifarth paid Hobbs more than $18,000 to validate his lies.
That clinic is now closed. It’s the former office of husband-and-wife chiropractors Thomas G. Hobbs and Vivian Carbone-Hobbs, who were sentenced to prison last year in a reported $20.7 million scheme. And the rest of the willing participants are beginning to have their time in court. Assistant U.S. Attorney Tracy Berry has prosecuted about a dozen co-conspirator cases just this year. It’s not over though. Over ninety individuals were identified as participants in this scheme. A scheme that cost the taxpayers more than $20 million.
The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation.
Today’s Fraud of The Day is based on article “Growing Disability Fraud Scheme Crackdown Nets 64-year Old Man” published by Fox News on August 28, 2024.
Federal prosecutors say patients knew to visit a certain Arnold chiropractic office—in order to fake disabilities and get big payouts. The clinic is now closed. It’s the former office of husband-and-wife chiropractors Thomas G. Hobbs and Vivian Carbone-Hobbs, who were sentenced to prison last year in a reported $20.7 million scheme.
Wednesday, another former patient pleaded guilty to disability fraud, in what federal prosecutors said cost the Social Security Administration $287,000 in that case alone.