Jason Cato

Jul. 14, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- The money arrived from the Social Security Administration around the third of each month, deposited directly into Mary Whetsell's account at Citizens Bank.

The government had no way of knowing the 70-year-old woman was dead, buried in the backyard of a Turtle Creek rental home where she died four years ago.

But Kenneth Zang knew.

Whetsell's longtime caregiver said he dug the shallow grave and buried his roommate. He had access to her government benefit payments -- armed with her account number and online banking.

"I was just being stupid," said Zang, 56, who otherwise makes money through odd jobs. "Inside of me, I felt like I was doing something wrong, but it wasn't penetrating me. It wasn't like there was a person tapping me on my shoulder telling me I was doing wrong."

That tap might come soon in the form of criminal charges, police said. Whetsell's death and crude burial came to light last week.

"I know I've got to pay it back," he said. "I know I did wrong, and I feel real bad about it."

The increasing popularity of automatic deposits and online banking, as well as the sheer volume of more people retiring, is sure to increase the number of instances in which people cash in on the benefits of deceased loved ones, said Ted Siedle of Ocean Ridge, Fla., a pension expert and former Securities and Exchange Commission lawyer.

"It's a growing problem across the country ... and it's going to get worse," Siedle said. "As the population grows older and people haven't saved enough, people are going to look at retirement savings as a place to steal."

Though Zang might face state charges for abuse of corpse, federal prosecutors generally handle benefit fraud cases. Between 2003 and 2007, the Social Security Administration opened more than 4,550 criminal cases in which someone was suspected of collecting a dead person's benefits. The cases led to 644 convictions.

At least 11 such federal cases have been brought in Western Pennsylvania since 2004. In two cases, payments were made to recipients through direct-deposit.

Laurie Davin, 47, of Beechview is accused of fraudulently accepting more than $35,600 in VA benefits sent to her dead mother. Michael Vasalech, 27, of Monaca is accused of taking nearly $11,500 in Social Security payments deposited into the account of his wife's grandmother.

The Social Security Administration says it has no way of measuring the impact of electronic banking on benefit fraud. The administration encourages beneficiaries to sign up for direct deposit, said Terri Lewis, a spokeswoman in the agency's Philadelphia office.

"It is the safest, most reliable and most expedient method of payment," Lewis said.

About 85 percent of the 49 million people who receive Social Security payments use direct deposit, Lewis said.

Even with predictions that automatic deposits could make it easier, people are still perpetuating benefit fraud the old-fashioned way.

Robert B. Crye, 68, of the North Side pleaded guilty last month in federal court to stealing more than $26,000 from the Western Pennsylvania Electrical Workers' pension fund. Prosecutors said Crye took checks intended for his late mother, who died in August 1997, and deposited them into the bank for nearly six years.

Police said two men in New York City were arrested in January after they wheeled a corpse in an office chair to a check-cashing store in an effort to cash the dead man's Social Security check.

Newstex ID: KRTB-0288-26632575