Derek Gochanour, 50, of Westport, Washington, pleaded guilty to Social Security fraud on Monday after admitting to illegally collecting more than $126,000 in disability benefits while actively working. According to the U.S. Attorney’s Office for the Western District of Washington, Gochanour failed to inform the Social Security Administration (SSA) that his medical condition had improved, allowing him to work.
Gochanour first applied for disability benefits in 2001 after being diagnosed with mitochondrial myopathy, a rare muscle disease. By 2003, a court declared him disabled. However, just two years later, Gochanour received a Merchant Mariner Credential from the U.S. Coast Guard, certifying that he was physically capable of performing shipboard duties.
In 2015, Gochanour and an associate purchased a 41-foot charter fishing boat. Gochanour worked as the captain, piloting the vessel and assisting customers but did not report any of his wages or income to the SSA. That same year, he submitted a letter to the Coast Guard from his neurologist affirming his fitness for duty but failed to provide this information to the SSA, as required.
Under the terms of a plea agreement, Gochanour agreed to pay $253,856 to cover both criminal restitution and related civil penalties. Social Security fraud carries a potential sentence of up to five years in prison.