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Oct 06, 2026

Lyons woman sentenced for Social Security fraud

Posted Oct 06, 2026 11:45 AM
Federal Courthouse, Wichita (Courtesy U.S. District Court, District of Kansas)
Federal Courthouse, Wichita (Courtesy U.S. District Court, District of Kansas)

MARC JACOBS
Hutch Post

WICHITA, Kan. — A Lyons woman has been sentenced to two years of probation and ordered to pay more than $316,000 in restitution after admitting she collected her incarcerated husband’s Social Security benefits for nearly a decade.

Carolyn Phillips, 79, pleaded guilty to one count of unauthorized acquisition of benefits, according to the U.S. Attorney’s Office for the District of Kansas. She was ordered to pay $316,570 in restitution to the Social Security Administration.

Court documents show Phillips’ husband was incarcerated from August 2014 until August 2024 for criminal offenses. Before entering prison, he had been receiving Social Security retirement benefits.

In March 2015, Phillips applied to become her husband’s representative payee, which allowed her to receive his Social Security benefits on his behalf. The application required Phillips to notify the Social Security Administration if her husband was confined in a jail, prison or other correctional facility.

Prosecutors said Phillips did not disclose his incarceration. Instead, she falsely reported that her husband had a mental impairment and that the couple lived together, with Phillips serving as his caretaker.

The Social Security Administration approved the application.

From 2015 through 2024, Phillips fraudulently received $316,570 in Social Security benefits, according to court documents. Records also showed $2,437 was deposited into her husband’s prison account between 2014 and 2024.

“The government doesn’t allow incarcerated individuals to continue receiving public benefits like Social Security because taxpayers are already footing the bill for their housing, meals, and healthcare while they are inmates,” U.S. Attorney Ryan A. Kriegshauser said.

Kriegshauser said the Justice Department’s National Fraud Enforcement Division is focused on identifying and prosecuting fraud involving federal programs.

The Justice Department announced the creation of the division April 7 as part of a broader federal effort to combat fraud, waste and abuse in government benefit programs.