Belleville man stole thousands in government benefits from his wife’s dead grandma

A Belleville man admitted Tuesday to embezzling thousands of dollars in government benefits from his deceased wife’s dead grandmother.

Scott C. Gunnarson, 47, pleaded guilty to single count of theft of government funds in the federal court for the Southern District of Illinois.

According to court documents, Gunnarson’s grandmother-in-law received social security checks via direct deposit to her bank account, as well as funds from the Office of Personnel Management’s Civil Service Retirement and Disability Fund as the beneficiary of her deceased husband.

When she died in April of 2018, neither agency was notified and deposits totaling $86,622 continued until July of 2020. Nearly $79,000 in “unauthorized debits” were subsequently made from her account at U.S. Bank, court records state.

Gunnarson gained access to the account in at least July of 2019 when his wife, Jennifer Gunnarson, died. As part of his plea bargain, Scott Gunnarson admitted to withdrawing $17,319.42 from the grandmother’s bank account.

The crime for which Gunnarson was charged carries a maximum prison sentence of up to 10 years, up to three years of supervised release and fines of up to $250,000. But, according to court documents, prosecutors agreed to request “the lower range” of the sentencing guidelines in exchange for Gunnarson’s guilty plea.

Sentencing is scheduled for 10:30 a.m. on May 2.

“By failing to notify the government of a loved one’s passing and continuing to collect their benefits, individuals commit felony theft,” said U.S. Attorney Rachelle Aud Crowe. “Defrauding benefit agencies is a serious offense, and relatives tempted to swindle funds face going to federal prison.”

The Social Security Administration Office of the Inspector General and the Office of Personnel Management contributed to the investigation. Assistant U.S. Attorney Peter Reed is prosecuting the case.