$585K Disability Case Ends in Prison

Empty courtroom with wooden benches and judge's bench — Photo: B Brown / Shutterstock

Federal prosecutors say a New Jersey funeral director took more than $585,000 in disability benefits while working and skiing around the world, and now he is going to prison.

Story Highlights

A federal jury convicted Steven D. Stankovits of fraud; a judge sentenced him to a year and a day in prison.
Prosecutors say he claimed he could not work or sit for long, yet worked as a funeral director and took ski trips.
Court records say he received about $585,000 in benefits from 2010 to 2022.
The case spotlights growing scrutiny of disability fraud and improper payments in federal programs.

What The Jury Decided And The Judge Ordered

On March 5, 2026, a federal jury found Steven D. Stankovits, 57, guilty of four counts of wire fraud and one count of making false statements to the Social Security Administration. On September 21, a federal judge sentenced him to a year and a day in prison. The court also ordered restitution tied to the benefits he wrongfully drew. Prosecutors say the scheme lasted for years and drained taxpayer funds meant for people who truly cannot work.

According to the U.S. Attorney’s Office for New Jersey, Stankovits won disability benefits starting in 2010, retroactive to 2007. Prosecutors say he claimed he could not work, could not sit comfortably for more than 15 minutes, could not bend to dress, and even struggled to lift a carton of milk. Yet investigators say he continued working as a licensed funeral director at two funeral homes while drawing payments.

Evidence Cited By Prosecutors

Federal filings state that Stankovits repeated those claims for about a decade through reports and statements to the Social Security Administration. Prosecutors say he also took long flights for ski trips to Cortina in Italy, Lake Tahoe, and Park City, and bought a season pass in Killington, Vermont. They say he did heavy tasks at work, including carrying 160-pound caskets down stairs and climbing a ladder to install a sign, which clashed with his claimed limits.

An indictment filed in March details the government’s theory of the case. It says he applied for disability in 2007, claimed he had not worked since 2006 due to a spinal injury and other conditions, and then received about $585,629 from 2010 through early 2022. It also alleges he made false statements on a 2020 Disability Update Report. A jury weighed that record and returned the guilty verdicts this spring.

Why This Case Resonates Beyond One Verdict

Many Americans on both the right and left worry that federal systems too often reward insiders and miss obvious abuse. Cases like this deepen that distrust. The Social Security Administration’s watchdog has told Congress that many improper payments come from people not reporting work while on benefits, which strains the program and public faith in it. Strong oversight helps protect taxpayers and people who rely on disability to get by.

At the same time, the rules are complex. Some beneficiaries can try working under specific limits. That is why the line between “working while disabled” and “fraud” depends on earning levels and truthful reporting. In this case, prosecutors brought detailed records, travel proof, and work activity to show deceit. A jury agreed. The sentence sends a message that lying to obtain federal benefits can bring prison time and large restitution.