Florida psychiatrist indicted for tax evasion and disability fraud

April 10, 2018

A federal grand jury has charged Florida psychiatrist Arthur John Kranz with tax evasion, mail fraud, wire fraud, theft of government funds, and Social Security disability fraud.

Beginning in 2002, Kranz allegedly began receiving disability payments from his insurance company and in December 2003, he applied for disability benefits from the Social Security Administration (SSA) which was approved.  

The indictment charges that between 2006 and 2013, Kranz worked as a psychiatrist at a hospital and earned over $1.6 million, but he did not report this to the SSA or his insurance company.  It is also alleged that he took steps to conceal his income from the insurance company, the SSA and the Internal Revenue Service.  Furthermore, it is alleged that while he was working, he submitted documents to the insurance company on which he falsely stated he was not in working order so he could continue receiving disability payments.  

In total, Kranz allegedly received over $700,000 in fraudulent disability payments from the SSA and the insurance company.

If convicted, Kranz faces a statutory maximum sentence of five years in prison for each count of tax evasion, 20 years in prison for each count of mail and wire fraud, 10 years in prison for theft of public money, and five years in prison for Social Security fraud.  

SOURCE: Department of Justice, Office of Public Affairs, "South Florida Doctor Indicted for Tax Evasion and Disability Fraud," Justice News, 5 Apr 2018, https://www.justice.gov/opa/pr/south-florida-doctor-indicted-tax-evasion-and-disability-fraud.