DOJ: North Braddock Man Charged with Carrying Out Six-Year Social Security Fraud

• Wallar allegedly misused payments as a representative payee from June 3, 2019, to May 30, 2025.
• The indictment includes charges of theft of public money and representative payee misuse.

A federal grand jury in Pittsburgh indicted Daniel M. Wallar, 70, for social security fraud after he allegedly converted payments intended for another individual while acting as their representative payee. The indictment was unsealed following Wallar’s arrest.

Wallar faces two counts: theft of public money and representative payee misuse. The Social Security Administration Office of the Inspector General investigated the case, and the prosecution is led by Executive Assistant United States Attorney Carolyn J. Bloch.

• 10 years maximum prison term for theft of public money
• $250,000 maximum fine for each count

• Review representative payee accounts for misuse typologies as described in the DOJ indictment.
• Cross-check Social Security benefit payments from June 3, 2019, to May 30, 2025, for unauthorized conversions.
• Update internal controls to detect theft of public money and representative payee misuse per DOJ guidance.

This case highlights the risks of fraud involving representative payees and public benefit accounts, which are often targeted for misuse. Compliance officers must ensure robust controls and monitoring to detect unauthorized conversions and theft of public money. The indictment underscores the importance of reviewing benefit payment flows and representative payee activities, as well as collaborating with agencies like the Social Security Administration Office of the Inspector General to prevent and respond to such fraud.