East Chicago woman sentenced to prison for wire fraud involving social security benefits

Adam L. Mildred, United States Attorney
Adam L. Mildred, United States Attorney
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Rose Henderson, a 62-year-old resident of East Chicago, Indiana, was sentenced on Mar. 18 to 12 months and one day in prison after pleading guilty to wire fraud, according to United States Attorney Adam L. Mildred.

Henderson was also ordered by United States District Court Judge Gretchen S. Lund to pay $364,779 in restitution. The case highlights the risks and consequences associated with fraudulent use of government assistance programs.

Court documents show that Henderson’s mother began receiving social security benefits in August 1989. In 1995, Henderson became her mother’s representative payee and was responsible for using the funds for her mother’s care. After her mother passed away the following year, Henderson did not inform the Social Security Administration (SSA) of her death and continued collecting benefits for over twenty years.

During this period from September 1996 until March 2021, Henderson submitted false paperwork claiming her mother was still alive and spent the funds on herself. Expenditures included multiple cruises, frequent trips to Las Vegas, and large cash withdrawals at casinos in northwest Indiana.

“Henderson stole hundreds of thousands of dollars from a government assistance program designed to help the most vulnerable members of society and used it for decades to support a lifestyle that is beyond the reach of many members of the community,” said United States Attorney Mildred. “Through the hard work of the Office of the Inspector General of the Social Security Administration, and the United States Attorney’s Office, Northern Division, the Defendant was arrested, prosecuted, and sentenced.  We will, along with our law enforcement partners, will continue to hold accountable those who defraud government programs and put critical benefits at risk.”

The investigation into this case was conducted by the Social Security Administration’s Office of Inspector General. Assistant United States Attorneys Steven J. Lupa and Zachary D. Heater prosecuted this case.



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