Woman Sentenced After Stealing From Dead Mother

HAMMOND, Ind. (WOWO) — An East Chicago woman who spent more than two decades collecting her deceased mother’s Social Security benefits to fund a lavish lifestyle of cruises and casino trips has been sentenced to federal prison.

Rose Henderson, 62, was sentenced Wednesday by U.S. District Court Judge Gretchen S. Lund to 12 months and one day in prison after pleading guilty to wire fraud. In addition to her prison term, Henderson was ordered to repay $364,779 in restitution to the Social Security Administration (SSA).

According to federal court documents, the fraud began nearly 30 years ago. Henderson’s mother originally began receiving benefits in 1989. In 1995, Henderson was appointed as her mother’s “representative payee,” a role that gave her a legal and fiduciary duty to ensure the funds were used solely for her mother’s care.

When her mother passed away the following year, in 1996, Henderson failed to notify the SSA. Instead, she continued to collect the monthly payments for the next 25 years.

To keep the scheme alive, Henderson periodically submitted fraudulent paperwork to the government, swearing that her mother was still alive and that the money was being used for her support.

Cruises, Vegas, and Casinos

While the funds were intended for elderly care, investigators found the money supported a lifestyle far beyond the reach of the average citizen. Between September 1996 and March 2021, Henderson used the stolen $364,779 to fund:

Multiple vacation cruises.

Frequent trips to Las Vegas.

Large cash withdrawals at Northwest Indiana casinos.

United States Attorney Adam L. Mildred characterized the crime as a direct hit on a program meant to protect the public’s most vulnerable members.

“Henderson stole hundreds of thousands of dollars from a government assistance program… and used it for decades to support a lifestyle that is beyond the reach of many members of the community,” **Mildred said.** “We will continue to hold accountable those who defraud government programs and put critical benefits at risk.”

The investigation was led by the Social Security Administration’s Office of the Inspector General.

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