Inmate and daughter-in-law found guilty in Social Security scheme

Posted at 8:51 PM, Mar 24, 2016
and last updated 2016-03-24 20:51:19-04

David McPeters, courtesy image from Michigan Department of Corrections. Taken December 2013.

WEST MICHIGAN — A federal inmate and his daughter-in-law were convicted of conspiring to defraud the social security system.

On Thursday, David McPeters, 80, and Kathryn McPeters, 57 were found guilty of conspiracy to defraud the Social Security Administration by a federal grand jury, according to U.S. Attorney Pat Miles.

It was found during the three-day trial that the pair netted $250,000 using David’s name and personal information. Officials said Kathryn applied for retirement benefits online and kept the majority of the profited gains.

“Social Security retirement benefits are an important safety net for all of us when we retire McPeters is already serving his retirement at taxpayer expense at the Michigan Department of Corrections. The money he and his daughter-in-law swindled should have gone to those retired individuals who have been hardworking taxpayers all their lives,” said Miles.

David is serving a life sentence in prison for a 1982 murder conviction. Officials said his daughter-in-law is out on bond awaiting a sentencing hearing.

The conspired scheme reportedly took place between 2006-2015.