Two charged in alleged Social Security fraud

Two individuals have been charged in separate incidents where they allegedly schemed the Social Security Administration out of thousands of dollars in disability and retirement benefits.

Nassau County District Attorney Anne Donnelly opened charges against Markus Effinger, 55, of Uniondale and Gloria Sevilla, 58, of Valley Stream. Both are charged with grand larceny and pleaded not guilty at their respective arraignments. If convicted, both face up to 15 years in prison.

Sevilla allegedly netted $137,000 in fraudulently acquired retirement benefits. Effinger bagged upwards of $72,000 in fraudulent disability benefits.

“Millions of people rely on Social Security disability and retirement benefits every day to make ends meet,” said Donnelly. “These defendants allegedly took advantage of a system designed to protect the most vulnerable from financial stress and stole tens of thousands of dollars of benefits to which they were not entitled. We must protect these vital services for the people who need them most.”

“These arrests demonstrate that my office will continue to pursue those who obtain, or retain, Social Security benefits fraudulently,” said Gail S. Ennis, Inspector General for the Social Security Administration. “Our duty is to protect taxpayers’ funds for those who are truly entitled to receive them. I appreciate the Nassau County District Attorney’s Office for their work and support of our investigation.”

Beginning January of 2015 until 2022, Effinger was collecting Supplemental Security Income for “retinal detachment” and other vision issues.

Individuals are eligible to collect SSI benefits “if they are deemed to have a disability and the applicant has less than $2,000 in monthly resources, and recipients are required to report any income or asset changes,” according to SSA regulations.

Effinger allegedly lied about his financial situation to gain eligibility benefits including that he lived with family, paid $500 in monthly rent, and had just over $100 in his bank account.

An investigation revealed that Effinger and his fiancée were 50% managing members of a company called Dash Xpress, where they were also drivers.

Sevilla allegedly “jointly controlled” a bank account belonging to a dead woman and failed to report her death in 2015 while nabbing roughly $137,000 from that time to Oct. of 2022. Investigators found withdrawals made from the account to pay for debit card charges to purchase items for Sevilla’s home improvement business at Home Depot, Aboff Paints, and local lumberyards.