Former Hamilton Man Sentenced on Felony for Lying to Receive More Than $70,000 in Social Security Administration Benefits

Jun 28, 2023

From the U.S. Attorney’s Office, District of Montana:

MISSOULA — A former Hamilton man who admitted to making false statements to receive more than $70,000 in disability payments from the Social Security Administration was sentenced today, U.S. Attorney Jesse Laslovich said.

Aaron Lee Grossman, 51, of Washington, Utah, and formerly of Hamilton, pleaded guilty in February to false statements to a government agency.

U.S. District Judge Donald W. Molloy presided. The court sentenced Grossman to three years of probation, with three months to be spent on electronic location monitoring, imposed a $20,000 fine, ordered $71,456 restitution to the Social Security Administration and required Grossman to perform 150 hours of community service.

In court documents, the government alleged that in 2011, Grossman applied for Social Security Disability Insurance (SSDI) payments from the Social Security Administration. The agency approved Grossman’s application and advised him of his legal obligation to notify it if he experienced a change in his ability to work, returned to work or if his medical condition improved. In February 2020, the Social Security Administration learned Grossman had started a new business and not reported it as required. Additionally, the agency learned that Grossman received $36,210 from Lynch Insulation in 2019 for work he performed through Grossman Consulting, LLC. The agency then directed Grossman to update a Work Activity Report. Grossman did so but did not report making any money from Lynch Insulation. Had he reported the income, Grossman would have been ineligible for SSDI benefits. When confronted, Grossman lied to agents and claimed his wife earned those wages. However, records from Lynch Insulation indicted that Grossman, in fact, completed the work. In an interview in 2021, Grossman admitted he concealed his income from Lynch Insulation so he could maintain his government benefits. Grossman also underreported the value of his work for another company, owned by his father, from 2019 to 2021. Grossman’s father disclosed that Grossman’s hourly wage was set so low so he could maintain his disability payments.

Assistant U.S. Attorney Karla E. Painter prosecuted the case. The Social Security Administration Office of Inspector General conducted the investigation.

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