A 57-year-old Indianapolis woman allegedly kept her late husband’s disability payments flowing into a shared bank account for nearly four years, collecting more than $95,000 before the money trail drew scrutiny. She now faces a felony theft charge, even as investigators work to recover tens of thousands of dollars that remain unpaid.
Court documents reviewed by Fox 59 accuse Nikki Dayton of receiving $95,785.50 in disability benefit payments between March 2021 and January 2025. Dayton was charged in Marion Superior Court 27 with theft of more than $50,000, and a warrant was issued; Fox 59 reported she had not been booked into jail as of publication.
Payments Continued After Her Husband’s Death
The Social Security Administration says funeral homes generally report deaths, but deaths can also be reported directly to the agency when necessary. Any payment actually owed after a beneficiary’s death is handled through a priority system that can include a qualifying surviving spouse, children, parents or the deceased person’s estate, according to the Social Security Administration.
According to the documents detailed by Fox 59, Dayton’s husband died March 19, 2021, at a hospital in Danville, and the payments continued landing in a bank account shared by the couple. Dayton allegedly received $2,466 per month, although SSA records showed she was employed and not disabled and investigators said she was not eligible for the monthly benefits as a surviving spouse; bank records allegedly showed the money was moved to other accounts soon after each deposit.
The Social Security Administration began investigating in January 2025 after receiving a tip about the husband’s death, the documents reportedly say. Dayton allegedly acted surprised when investigators asked about the payments, while the U.S. Treasury later reclaimed more than $22,000 in incorrect payments and court records listed $73,451.21 as still outstanding.
Level 5 Felony Could Mean Up To Six Years
Indiana’s Level 5 felony sentencing range is one to six years, with a three-year advisory sentence, according to the Indiana Department of Correction. The potential maximum is not a prediction of what Dayton would receive if convicted, and the charge remains an allegation until resolved in court.
The case echoes a 2025 federal prosecution involving a Kokomo woman who admitted collecting more than $231,000 in her deceased husband’s Social Security retirement benefits after falsely claiming he was still alive. The U.S. Attorney’s Office for the Southern District of Indiana said that woman received probation and was ordered to repay the money.
