Man takes advantage of admin error allowing him to collect his deceased father's pension for 15 years – CSN News

Administrative errors by the government are a constant possibility. In Spain, a social security mistake allowed a man 15 years to collect his father’s pension after his mother died. After her husband’s passing, she was entitled to a widow pension. While acknowledging that the social security system was negligent, the court found the son guilty for not reporting the error and collecting funds from his parents’ joint accounts, which he became co-owner of.

The Supreme Court then sentenced him to two-years in prison plus a fine exceeding 400,000 euros, and civil liability exceeding 230,000 euros.

According to the court case the father received his pension from 17 February 1998. The benefit was paid out in 14 annual installments. The benefit was paid in 14 annual payments.

The widowed mother applied to Social Security for widow benefits after her husband’s death, and provided the death certificate. She was able to receive the money through the same account after her entitlement had been recognized. The social security staff continued to pay her retirement pension. This meant that she received two types of benefits.

After the death of his mother, the son was made the joint account holder with Caixabank. He was aware of the payments but did not notify the social security system nor the bank about the termination of his parents’ right to benefit or their death.

‘Patrimonial enrichment’

The bank also failed to fulfill its duty of monitoring the father’s situation and the funds entered as usual. The son used the money for personal purchases, including food, clothes, entertainment, and bills, up until the end of the retirement pension payments on 6 July 2015 When the bank upgraded its controls and informed the social security officials about the death, the son continued to use the funds for his personal purchases. He bought food, clothes, entertainment and bills until the retirement pension payments ended on 6 July 2015.

The total amount of the unjustly paid amounts was 317,465.19 Euros. From this sum, the bank refunded 79,682.36 Euros to the Social Security System for payments that were made four years before the notification of death.

The Santa Cruz de Tenerife Provincial Court sentenced the defendant to two-years in prison plus a fine worth 400,000 euros, and the return of all outstanding amounts after Caixabank had paid. The defendant appealed claiming his mother had informed the institution about the death. The High Court of Justice of the Canary Islands recognized this and overturned the conviction. They acquitted the defendant of the crime, stating that he did not commit fraud but had only profited from an administrative mistake that was not corrected.

The Supreme Court ruled that the Social Security System did not accept the ruling. The new decision recognized the negligence on the part of the social insurance, which had failed to cancel pensions after the widow informed them of the death of the retired gentleman. But the judge considered that defendant’s silent silence had exacerbated the issue. The son was also aware that he had been benefiting from the money for many years. The original conviction was therefore upheld.

In a dissenting view, one of the judges argued that the administration should and could have corrected the mistake. According to him, the defendant’s conduct was reprehensible but did not amount to active concealment but rather, prolonged silence. He proposed a more lenient punishment, as he believed that the failure to report a death was not of the same severity as premeditated fraudulent conduct.