Rensselaer Woman Indicted in $668,884 Social Security and NYS Pension Fraud Scheme

Kimberly Cardella, 59, of Rensselaer, NY was arraigned September 18, 2026, in Albany, NY before U.S. Magistrate Daniel J. Stewart on multiple counts including bank fraud, theft of government property and aggravated identity theft. A federal grand jury indicted Cardella on September 3, 2026. The charges arise from a joint investigation involving the Social Security Administration's Office of the Inspector General and the New York State Comptroller's Office. According to the indictment, Cardella's mother-in-law was a Social Security beneficiary and a NYS pensioner who passed away in 2009. Because neither the Social Security Administration nor the New York State and Local Retirement System had been made aware of the death, both agencies continued to fund the dead mother-in-law's checking account. Cardella wrote checks for her personal use against that account, signing the checks in her mother-in-law's name for nearly 17 years after the death. This caused a loss of more than $530,000.00 to the Social Security program and more than $138,000.00 to the NYS pension fund. This action is part of an ongoing effort of the Trump Administration's Fraud Task Force aimed at eliminating fraud across the country.

First Assistant United States Attorney John A. Sarcone III, Amy Connelly, Special Agent in Charge, Boston/New York Field Division, Social Security Administration Office of the Inspector General (SSA-OIG), and New York State Comptroller Thomas P. DiNapoli made the announcement.

First Assistant United States Attorney John Sarcone stated, "The fact that this defendant openly signed her own dead mother-in-law's name on checks that did not belong to her, in effect adopting her mother-in-law's identity to obtain public funds intended for those in genuine need, as alleged, is simply shocking. The fact that she continued this scheme for nearly seventeen years underscores the need for continued robust oversight and enforcement in our public benefits programs. Hat's off to the SSA-OIG and the New York State Comptroller's investigators who jointly investigated this case. My office stands ready to enforce laws against self-interested fraudsters like this who shamelessly convert public funds away from programs for the elderly and those who are truly in need."

"Diverting more than half a million dollars in Social Security benefits is an egregious crime that directly harms the beneficiaries these programs are meant to support," said Amy Connelly, Special Agent in Charge, Social Security Administration Office of the Inspector General, Boston-New York-Philadelphia Field Division. "Working alongside the U.S. Attorney's Office and the New York State Comptroller's Office, we will continue to pursue those who exploit federal and state benefit programs and ensure these vital funds remain protected for the individuals they are intended to serve."

New York State Comptroller Thomas P. DiNapoli stated "Kimberly Cardella allegedly scammed the state and federal governments out of nearly $670,000 over a 17-year period by taking money meant for her deceased mother-in-law. Thanks to the work of my investigators and partners in the federal government, her brazen fraud has been exposed, and she will be held accountable."

The charges filed against Cardella carry a maximum sentence of 30 years in prison and a $1 million fine for bank fraud, 10 years for theft of government property, and a mandatory 2 years for aggravated identity theft; with additional fines of up to $250,000, and a term of supervised release of up to 5 years. Cardella may also be ordered to pay restitution to the United States of America and to New York State. In addition, the government is seeking forfeiture of $530,735.00 lost to fraud in this case. A defendant's sentence is imposed by a judge based on the statutes the defendant is convicted of violating, U.S. Sentencing Guidelines and other factors. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

SSA-OIG and the NYS Comptroller's Office are investigating the case. Special Assistant U.S. Attorney Arne Soldwedel is prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.