Former Funeral Director Sentenced for Disability Fraud
Steven D. Stankovits received a one-year prison term for defrauding the Social Security Administration.
Updated on Sept. 21, 2026 in Financial Crime
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On July 21, 2026, a federal judge in Trenton sentenced Steven D. Stankovits to one year and one day in prison for disability fraud. Stankovits, a licensed funeral director, had claimed inability to work while performing physical labor and skiing.
Why it matters
The case highlights the enforcement of federal disability programs against individuals who maintain employment while collecting benefits. Stankovits defrauded the Social Security Administration out of over $585,000 during a decade-long period of false claims.
Judge Zahid N. Quraishi ordered the defendant to pay $50,000 in fines and $585,629.80 in restitution. Stankovits must also forfeit $480,968 in proceeds following his March 5, 2026, conviction on wire fraud and false statement charges.
The players
Steven D. Stankovits
He is a licensed funeral director from Matawan, New Jersey, who was convicted of federal wire fraud.
Zahid N. Quraishi
He is the federal judge who presided over the sentencing hearing in Trenton.
Social Security Administration
This is the federal agency that administers the Disability Insurance Benefits program.
The details
Stankovits claimed he could not work due to disability while secretly working as a funeral director, where he lifted 160-pound caskets. Prosecutors also presented evidence that he vacationed to ski in Italy, California, and Utah while receiving federal benefits.
Timeline
Stankovits began receiving retroactive disability benefits in 2007.
The defendant was found eligible for disability benefits in May 2010.
A jury convicted Stankovits on March 5, 2026.
Judge Quraishi sentenced Stankovits on July 21, 2026.
Legal Context
This case follows a pattern set by federal investigations into widespread disability benefits fraud. It marks a continued effort by authorities to identify and prosecute individuals who maintain gainful employment while simultaneously collecting disability payments.
Residents in the local community and beyond are reminded that benefits fraud triggers rigorous federal audits and criminal prosecution. This sentence serves as a warning that agencies utilize diverse evidence, such as travel and employment records, to verify eligibility.
The takeaway
Maintaining transparency with federal disability documentation is essential to avoiding severe legal and financial consequences. Intentional misrepresentation of physical capabilities can lead to significant restitution orders and mandatory prison time.
Further reading
For more on how local authorities address complex white-collar offenses, visit Financial Crime.
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