A 73-year-old man in Phoenix was sentenced to five years of supervised probation for social security fraud dating back to 2010 on March 25.
Walter Kruljac pleaded guilty as part of a plea deal, admitting he collected social security under a false identity given to him by his brother in prison.
In 1993, Walter Kruljac’s brother and codefendant in the case, Edward Kruljac, began living under the false identity of “Steven Connie,” to evade an arrest warrant charging him with child molestation.
Edward Kruljac fled Arizona to Las Vegas and began using the false identity to illegally receive insurance and income through social security. Eventually, Phoenix Police received a tip from his former spouse, Janet Schafer, revealing his identity. He was arrested in Las Vegas and extradited back to Arizona in 2009 where he spent 11 years in prison.
Edward Kruljac admitted to police the “Steven Connie” identity was fake, however the Social Security Administration remained unaware and continued to make payments throughout his incarceration. Walter Kruljac assumed the role of collecting the payments, still under the identity of “Steven Connie.”
“This brother wasn’t the one who initiated the SSA benefits scheme.” State Prosecutor Phillip Grove said. “But at least as of 2013, Mr. Walter Kruljac was basically in charge of that identity and taking advantage of it.”
Kruljac was also ordered to pay $54,075.80 in restitution to the United States Social Security Administration.
Walter Kruljac’s attorney, David Cutrer, claimed all of the money Walter Kruljac illegally collected from the SSA he gave either to his brother in prison, or to his mother.
“Mr. Kruljac wasn’t ‘getting well’ by any stretch of the imagination on these monies.” Cutrer said. “He has been working full time his entire life and is through today.”
Kruljac accepted responsibility for the crime and said it was a lapse in judgement.
“I’m really sorry that this happened, just a monumental lapse in judgement on my part,” He told Maricopa County Superior Court Judge Justin Beresky. “There’s no excuse no matter how I try to slice it.”
Walter Kruljac said he has not worked in six months and has been suspended pending the outcome of his trial. He told Beresky he will be notified whether he is reinstated after a review by FedEx, where he is part time employee. Due to his concern, Beresky lowered Walter Kruljac’s probation fee and told him he hopes it gives him a chance to focus on paying as much of the restitution back as possible.
“If you come into money, it would be beneficial for you to pay that.” Beresky told Walter Kruljac, referring to the restitution.
Beresky listened to Kruljac’s apology but deferred to the prosecution’s recommendation in his sentencing.
“I’ve read and considered the stipulations in the plea as well as the criminal history.” Beresky said.
By pleading guilty, Walter Kruljac had his prison sentence suspended and was instead placed on supervised probation. Walter Kruljac originally faced five felony charges for his role in the scheme but had four of them dismissed as part of his plea deal. The remaining charge, fraudulent schemes and artifices, carries a maximum ten-year prison sentence. If he is unable to pay the assigned restitution by the end of his probation, he may have his probation extended.
Edited by Shi Bradley
