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Klamath Falls man charged in $458,000 Social Security fraud

A Klamath Falls business owner has been charged with defrauding the federal government for more than three decades by collecting Social Security benefits in the name of an aunt who died in 1971.

George William Doumar, 76, owner of Frontier Parcel & Fax service in Klamath Falls, faces charges of mail theft and theft of public funds accusing him of collecting his aunt’s Social Security benefits since at least 1989 and arranging for her checks to be mailed to the business he’s owned since 1990, according to a press release issued by the U.S. Attorney’s Office and a document filed Tuesday in U.S. District Court in Medford.

Doumar’s aunt, whose name is redacted in an affidavit filed by the Social Security Administration’s Office of Inspector General’s Salem office, was born in August 1905 in New York City and died March 7, 1971, in Brooklyn, according to a death certificate issued by the New York City Department of Health and Mental Hygiene.

Federal investigators say Doumar gave his aunt a Klamath Falls address in July of 1989 and the following month added his aunt’s name to a joint checking account that also included Doumar and his wife. The bank account was used to make payments on a home mortgage, car loans and to cover utility, TV and internet bills.

Doumar allegedly admitted the fraud July 14 when federal investigators questioned him.

Doumar allegedly told investigators that he helped manage his aunt’s finances in the late 1960s while she lived in a Brooklyn nursing home. He allegedly told investigators that he tried to call Social Security to report that his aunt was deceased, and the checks stopped for several years, but they started appearing in the mail in the mid to late 1970s and he’d been cashing them ever since.

From the 1970s until 1989, Doumar allegedly told investigators, he’d cash her checks through a New York business he owned.

In 1989, Doumar moved from New York to Klamath Falls, and allegedly told investigators that he forged his aunt’s signature to add her onto his bank account in 1989.

Investigators say his aunt’s Social Security checks were mailed to a false apartment number at the address of his mailbox business.

Doumar allegedly instructed his daughter, who runs the mail business in the 3900 block of South Sixth Street in Klamath Falls, to keep any mail addressed to his aunt in a separate drawer for Doumar to collect later.

“Doumar maintained he never told his daughter, nor did they ever discuss, what was inside the envelopes or why he wanted [his aunt’s] mail set aside,” the affidavit stated.

The Social Security Administration estimated Doumar’s fraud to be worth $458,992.30, which the U.S. Attorney’s Office calls “one of the largest deceased beneficiary frauds in Social Security Administration history.” That amount does not include a $1,200 CARES act stimulus check that Doumar allegedly cashed in his aunt’s name in May.

U.S. District Court records show Doumar’s next court date has not yet been scheduled as of Tuesday afternoon. Doumar is not an inmate at the Klamath County Jail or the Jackson County Jail, records show.

Reach reporter Nick Morgan at 541-776-4471 or nmorgan@rosebudmedia.com. Follow him on Twitter @MTCrimeBeat.