Montana Couple Defrauds Social Security of Nearly $200,000

Missoula, MT (KGVO-AM News) - A Kalispell couple, 49-year-old Mistie Lynn Knapton and her husband 50-year-old Travis Ray Knapton, pleaded guilty in Missoula Federal Court to stealing nearly $200,000 from the Social Security Administration over a 15 year period starting in 2009.

I spoke to Montana’s U.S. Attorney Jesse Laslovich about the case.

Kalispell Married Couple Plead Guilty to Social Security Fraud

“A Kalispell married couple plead guilty to a federal felony for one of the defendants and a misdemeanor for the other, for theft of government money,” began Laslovich. “They stole nearly $200,000 from the Social Security Administration. All federal agencies are funded with taxpayer dollars, and so anytime we have allegations that someone is stealing from the taxpayer through these agencies, then we're going to be really aggressive and trying to hold them accountable.”

Laslovich provided just a few examples of the fraudulent activities admitted to by the defendants.

They Spent the Social Security Funds on Cars, Trucks and ATV's

“We found out that, in fact, what they had been representing to the Social Security Administration was false,” he said. “Instead of using this money for kids, they bought cars and trucks and ATVs, a motorcycle, a jet ski, and, of course, an inappropriate use of the money.”

In addition to being required to repay the money to the Social Security Administration, Laslovich related the possible sentences for the couple.

READ MORE: Missoula News - Crime Reports

The Felony Sentence Could be Up to Ten Years in Federal Prison

“The U.S. Probation Office will do a pre-sentence review,” he said. “They'll have an estimate of the sentencing guidelines, as you and I have discussed other times in the federal system. What I can tell you is that it's up to 10 years in federal prison, a $250,000 fine, and then they'll have to be on supervision for three years, regardless of the sentence imposed.”

Laslovich said the Social Security Administration will use the funds to help those who qualify for the assistance.

“They will use the money that it's intended,” he said. “Social Security, as we all know, is important as a safety net for folks who have put money into it, and they deserve the benefits, so this is important that we're returning it to them and then it can be used appropriately.”

Mistie Knapton pleaded guilty to the felony charges, while her husband Travis entered a guilty plea to the misdemeanors.