Kalispell couple admits fraud to Social Security Administration

MISSOULA – A Flathead County couple has admitted to stealing nearly $200,000 from the Social Security Administration by making false statements about their livelihood and financial situation.

U.S. Attorney Jesse Laslovich said in a news release that Mistie Lynn Knapton, 49, and her husband Travis Ray Knapton, 50, of Kalispell pleaded guilty to theft of government funds in separate hearings.

Mistie Knapton pleaded guilty and faces up to ten years in prison, a $250,000 fine and three years probation.

Travis Knapton pleaded guilty to a misdemeanor and faces up to one year in prison, a $100,000 fine and one year of probation.

The government alleged in court documents that the Knaptons received benefits from the Social Security Administration (SSA) through the Supplemental Security Income (SSI) program on behalf of their five children.

The government further claimed that Mistie was the representative payee for her children enrolled in SSI. In May 2009, Mistie wrote to the SSA that Travis was no longer living with her and her children.

Mistie frequently reported to the SSA that she and the children paid rent for their housing, that Travis was not a member of the household, and that her only income was the child support that Travis paid to Mistie.

However, from 2009 to the present, Travis owned the homes where Mistie and the children lived, frequently lived with them, and used his income to pay for vehicles, groceries, and other living expenses for the family. In addition to the homes, Travis owned several cars, trucks, ATVs, a motorcycle, and a jet ski.

The SSA reassessed benefits for one of the children in September 2020 and found that Mistie had not listed Travis as a household member and told the SSA that she was paying $1,400 per month in rent.

Mistie also confirmed that “no one in the household was a parent or child of the landlord or his spouse.” In fact, Mistie and Travis owned the home jointly, and Travis was part of the household at the time.

The SSA analyzed the Knaptons' assets and concluded that if the SSA had known the truth about the Knaptons' living and financial situation, the Knaptons' children would not have been eligible for SSI benefits from April 2011 through February 2024.

The SSA calculated that Knapton's children received $196,575 in SSI benefits they were not entitled to.

SSI earnings were paid into a separate bank account for each child. Mistie often divided the money stolen from the United States and transferred it to Travis' bank account.

Travis then used the stolen money to buy houses and cars and to pay for general living expenses and other things for himself and his family, the press release states.

U.S. District Judge Donald W. Molloy presided over the case. Sentencing for both defendants – who were released pending further proceedings – was set for January 9, 2025.

The U.S. Attorney's Office is prosecuting the case. The SSA Office of the Inspector General and the Montana Bureau of Criminal Investigation are conducting the investigation.