FORT SMITH – A sitting justice of the peace and her husband have admitted Social Security fraud.
Justice of the peace Rebekah Schwartz and husband Stephen Schwartz pleaded guilty in the Western District of Arkansas to felony theft of government funds and aiding and abetting the theft of government funds related to fraudulently accepting Social Security disability benefits while also operating a business, according to a news release from Attorney General Leslie Rutledge on Monday.
Schwartz, of 5606 Park Ave. in Fort Smith, represents District 12 on the Quorum Court.
The couple faces up to 10 years in prison.
In November 2020, the Little Rock Cooperative Disability Investigations Unit received a tip a Title II-Disability Insurance Benefit program participant, Stephen Schwartz, was working and simultaneously receiving disability benefits, according to the release.
From June 2016 to September 2016, he began employment with Liberty Roofing of Fort Smith, but had his paychecks issued under his wife's name in order to conceal he was working despite claiming a disability. Additionally, the investigation revealed he was employed from December 2016 to July 2017, at a countertop business in Fort Smith until he and his wife started their own business, Schwartz Quartz and Stone, according to the release.
On Aug. 19, 2019, Stephen Schwartz was sworn in as a Justice of the Peace for District 12 after being appointed by the Gov. Asa Hutchinson. He remained in this position until December 2020 when his term expired, which includes the time that he was defrauding the Social Security Administration. After his term ended, Rebekah Schwartz was elected to the District 12 seat, a position she presently holds.
The case is being prosecuted by Assistant U.S. Attorney Kyra Jenner. A sentencing date hasn't been set by the court.