A Westport, Washington resident has pleaded guilty to Social Security Fraud in U.S. District Court in Tacoma. Derek Gochanour, aged 50, admitted to illegally collecting $126,928 in benefits by not informing the Social Security Administration (SSA) of his ability to work. Acting U.S. Attorney Teal Luthy Miller announced the plea.
Gochanour's case dates back to April 2001 when he applied for disability insurance benefits due to mitochondrial myopathy, a muscle disease. By January 2003, he was deemed disabled and began receiving benefits. However, two years later, he obtained a Merchant Mariner Credential from the U.S. Coast Guard, indicating physical capability for shipboard functions.
In January 2012, Gochanour received a medical waiver from the Coast Guard requiring him to submit neurological evaluations regarding his condition's stability. These evaluations were provided multiple times.
By 2015, Gochanour had purchased a charter fishing boat with an associate and served as its captain without reporting any wages for his work on the vessel. He acknowledged that since at least 2015 his health and medication allowed him to work several months per year—a fact he did not disclose to SSA despite receiving notices requiring such updates.
In a Continuing Disability Review Report submitted in 2022, Gochanour failed to reveal his improved health status or his employment as a charter ship captain. The plea agreement includes prosecutors recommending three months in prison followed by three months of home detention; however, Chief U.S. District Judge David G. Estudillo can impose any lawful sentence.
Additionally, Gochanour agreed to pay $253,856 under a civil settlement with $126,928 designated as restitution for wrongly obtained benefits. The remaining amount addresses other civil claims against him.
The investigation involved both the Social Security Office of Inspector General (SSA-OIG) and the Coast Guard Investigative Service (CGIS). Special Assistant United States Attorney Jessica M. Ly is handling the criminal prosecution while Assistant United States Attorney Katie Fairchild manages the civil proceedings.