Update: Ceres woman who stole from Social Security recipients also took from the dead
A Ceres woman convicted of stealing over half a million dollars from Social Security took not only from the living but the dead, court documents revealed.
Lorene Deanda, 64, was sentenced Dec. 11 to three years and one month in federal prison for a scam she ran from about 2003 to 2015, The Bee previously reported.
Deanda worked for a faith-based charitable organization in Modesto that helped people who received Social Security and state benefits. The organization is not named in federal court documents but is referred to as “Entity #1.”
Authorities did not say why it was unidentified. However, KXTV Channel 10 in Sacramento reported that she worked for Catholic Charities Diocese of Stockton. A call to Catholic Charities on Friday afternoon reached a message that it is closed for Christmas.
Through what’s known as a “representative payee program,” the charity helps those who cannot physically, or are otherwise unable to, manage their own finances. This program’s aim is to provide the basic needs of its clients and advocate on their behalf, the court documents read.
Some of the organization’s clients also received benefits from the Veterans Administration, Railroad Retirement funds and California State Teachers’ Retirement System funds.
In 2006, Deanda became the office manager and representative payee for the Modesto office of the unidentified organization.
Once she took this position, she had almost total power over these recipients’ funds, according to court documents. It also meant she was in charge of communicating with SSA regarding these funds and the clients’ continued eligibility to receive them.
She could open bank accounts on their behalf, or transfer, withdrawal and deposit funds at her will. Deanda did just that, but would often pocket the money – transferring the funds directly to herself or to an account under her sister’s or mother’s name.
Deanda used “various methods” to move the money from her clients’ accounts to herself, which included accessing the “online bill pay portal” of their accounts and having the checks be delivered directly to her Ceres residence. She used this money to pay for personal bills, credit card bills and her mortgage.
“Deanda would also make bank counter cash withdrawals and obtain cashier’s checks as a further means of fraudulently obtaining funds from beneficiaries’ accounts,” read her plea agreement documents.
In cases where a beneficiary died, Deanda would empty their accounts of remaining funds and then spend them on herself, instead of returning the money back to the relevant agency.
“At all relevant times, the defendant acted with intent to defraud. As a result of the defendant’s conduct, federal and state agencies, including SSA and beneficiaries, lost more than $550,000,” read the documents.
In addition to the three years and one month in prison, Deanda was sentenced to three years of supervised release. The case was investigated by the SSA and the FBI. The case was prosecuted and defended by federal attorneys — neither were immediately available for comment on Friday afternoon.
