Schenectady woman sentenced in Social Security fraud case

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ALBANY, N.Y. (NEWS10) -– Jody Lyons, 54, of Schenectady, was sentenced Friday to two years of probation for stealing Social Security benefits paid into her dead mother’s bank account.

The announcement was made by Acting United States Attorney Antoinette Bacon and John Grasso, Special Agent in Charge of the Social Security Administration (SSA), Office of the Inspector General, New York Field Office.

As part of her earlier guilty plea, Lyons is said to have admitted that beginning in January 2015, the month of her mother’s death, Lyons withdrew and spent Social Security benefits that continued to be deposited into her mother’s bank account until August 2018, when the SSA learned of the death and benefit payments stopped. 

Lyons also reportedly admitted that she withdrew and spent her mother’s Social Security benefits despite knowing that the benefits were intended for her mother, and that Lyons was not entitled to the money.

United States District Judge Mae D’Agostino also reportedly ordered Lyons to pay full restitution to the SSA in the amount of $95,961 and to complete 50 hours of community service.

The case was investigated by the SSA Office of the Inspector General and prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.

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