KLAMATH FALLS, Ore. – A Klamath Falls man stands accused of one of the largest Social Security frauds in history.
The Department of Justice said back in February, the Social Security Administration’s anti-fraud program flagged what appeared to be a 114-year-old benefit recipient, the second oldest person in the system. Records showed the woman began to receive benefits when she retired in 1977. Suspiciously, the woman’s information hadn’t been updated in over 30 years. In light of these facts, the SSA began to suspect the woman was dead.
Eventually, two of the woman’s nieces were contacted by investigators. They both recalled attending their aunt’s funeral sometime in the 60s or 70s. They also said she didn’t have a husband or children when she died. But her nephew, George Doumar, was close to their aunt and he was the sole beneficiary of her life insurance payout.
Investigators learned Doumar—himself a Social Security recipient—lived just outside of Klamath Falls. He also owns Frontier Parcel & Fax Service on S. 6th Street in Klamath Falls.
On June 14, investigators were able to confirm the woman was dead after they received her death certificate from New York, dated March 7, 1971.
In July, Doumar was confronted by investigators and he admitted to collecting his aunt’s checks. Over the years, they added up to over $458,000.
Prosecutors said Doumar will appear in a federal court soon to face charges of mail theft and theft of public funds. If convicted, he would face a maximum of 10 years in prison, a $25,000 fine, and 3 years of post-prison supervision.
The U.S. Attorney’s Office will seek restitution on the SSA’s behalf.
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