Salt Lake City, Utah — A 69-year-old West Jordan man is facing serious federal charges after prosecutors say he spent nearly two decades living under another person’s identity to fraudulently collect more than $1 million in government and private disability benefits.
According to federal court records unsealed this week, Terry Lynn Reynolds has been charged with wire fraud, mail fraud, theft of government property, and aggravated identity theft in connection with a scheme that allegedly began more than 20 years ago and continued until early 2025.
Federal Charges Filed in Utah
The case is being prosecuted by the U.S. Attorney’s Office of Utah, which alleges that Reynolds unlawfully assumed another individual’s identity to receive monthly payments from both the federal government and a private insurance provider.
Prosecutors say the fraud involved repeated communications, falsified representations, and the long-term diversion of funds meant for a legitimately disabled individual.
How the Identity Theft Scheme Allegedly Began
Court documents state that around 1998, Reynolds lived near a person who had become disabled several years earlier. That individual—identified only as Person 1 in court filings—was receiving:
- Monthly disability payments from a private insurance policy
- Federal benefits from the Social Security Administration
Investigators allege Reynolds had access to Person 1’s name, Social Security number, and signature, allowing him to later impersonate the individual.
Alleged Fraud Spanning Two Decades
According to the indictment, the scheme formally began in November 2004, when Reynolds allegedly started presenting himself as the disabled individual to claim benefits that were not legally his.
Federal prosecutors say Reynolds:
- Submitted false statements and misrepresentations
- Concealed material facts from benefit administrators
- Communicated repeatedly with benefit agencies to maintain the fraud
- Diverted disability payments for personal use
The indictment alleges that Reynolds continued operating under the stolen identity until about March 2025, allowing the scheme to persist for nearly 20 years.
More Than $1 Million in Illicit Benefits
Through the alleged misuse of the other person’s identity, Reynolds is accused of obtaining over $1 million in combined benefits from federal and private sources.
Prosecutors allege that much of the fraud was sustained by written correspondence and documentation sent through mail and electronic communication—forming the basis for the wire fraud and mail fraud charges.
What Prosecutors Say
In charging documents, federal authorities allege Reynolds defrauded benefit providers:
“Through false statements, misrepresentations, deception and omissions of material facts, and thereafter diverted the money for his own uses.”
Officials say the prolonged duration of the scheme significantly increased the financial impact on both government programs and private insurers.
Upcoming Court Appearance
Reynolds is scheduled to make his initial appearance in federal court on January 13, where he will formally hear the charges against him. If convicted on all counts, he could face substantial prison time, restitution orders, and additional penalties tied to aggravated identity theft.
As with all criminal cases, Reynolds is presumed innocent unless and until proven guilty in court.
Why This Case Matters
Federal authorities have increasingly focused on long-term identity theft schemes, particularly those involving Social Security benefits. Such cases highlight vulnerabilities in benefit systems and underscore the importance of safeguarding personal identifying information.
Officials routinely urge individuals to monitor benefit statements, report suspicious activity, and protect Social Security numbers to prevent similar fraud.
Conclusion
The charges against Terry Lynn Reynolds outline what prosecutors describe as a rare and prolonged identity theft operation that allegedly lasted two decades and resulted in more than $1 million in losses. The case now moves to federal court, where its full scope will be examined.
If you have thoughts on this case or concerns about identity theft and benefit fraud, share your experiences in the comments below.
