Ohio Man Sentenced to 31 Months for $536K Health Fraud Scheme

UPDATE: An Ohio man, Michael W. Honaker, was sentenced to 31 months in prison for fraudulently obtaining over $536,000 in government benefits by faking health issues. The U.S. District Court in Cleveland delivered the verdict on October 20, 2023, following Honaker’s guilty plea to wire fraud and theft of government property.

This urgent case highlights alarming misuse of taxpayer-funded programs. Honaker, aged 55 from Windham, Ohio, had been collecting workers’ compensation benefits since 1998 and Social Security disability benefits from 1999. His fraudulent actions extended to housing benefits from the U.S. Department of Housing and Urban Development (HUD) starting in March 2012.

Investigators revealed that Honaker repeatedly misrepresented his physical condition, even feigning the need for crutches and a wheelchair during medical appointments.

“He had no problem going to great lengths to hide his deceitful behavior and reap the benefits from programs that are meant for people who truly need them,”

stated United States Attorney David M. Toepfer.

The collaborative efforts of the Ohio Bureau of Workers’ Compensation and various local and federal agencies were crucial in uncovering Honaker’s extensive scheme. Shawn Rice, Special Agent in Charge at HUD, emphasized,

“HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”

Honaker’s actions not only defrauded government agencies but also jeopardized resources intended for low-income families. In a related development, Nichole E. Johnson, an accomplice in the scheme, received a sentence of 24 months probation for making false statements regarding Honaker’s health to the SSA. Johnson, who was living at the fraudulent address since 2016, was also ordered to pay restitution of $4,624.

This case underscores the importance of vigilance against fraud in government programs, ensuring that resources are allocated to those who genuinely need assistance. The investigation, led by Special Assistant United States Attorney Jason W. White, involved multiple agencies, including HUD-OIG and the Windham Police Department.

As this story develops, the focus remains on safeguarding public funds and addressing fraud effectively to protect vulnerable populations.