Hobe Sound doctor sentenced to over 4 years in prison for tax evasion and disability fraud
By Sara Marino
April 30, 2019
HOBE SOUND— A Hobe Sound doctor was sentenced to over four years in prison for disability fraud and other fraud charges.
Arthur Kranz of Hobe Sound was sentenced to four years, three months in prison Monday for tax evasion, wire fraud and Social Security disability fraud, according to a news release from the U.S. Attorney’s Office for the Southern District of Florida.
Along with serving the time in prison, the doctor was ordered to pay $1,013,284 restitution and spend three years on supervised release.
More: Port St. Lucie ranks No. 9 in the state for fraud
Kranz claimed disability through his own insurance company in 2002 and began receiving money from the policy, according to Sarah Schall, public information officer for the federal office’s Southern District of Florida in Miami.
In 2003, he then submitted an application to the Social Security Administration for disability benefits and began receiving them, as well.
Kranz was required to notify his insurance company and the Social Security office if he returned to work, which he did not do when he began working as a psychiatrist in a hospital from January 2006 to March 2013.
The psychiatrist earned over $1.6 million in income and failed to report the income. Instead, Kranz directed his income to other people and sham corporations he had created to receive it without having to report it, Schall wrote in an email.
He also filed false personal tax returns and continued to tell his insurance company he wasn’t working, according to the news release.