Retired judge wanted in disability fraud case arrested in S.C.

The retired federal judge wanted in connection with a massive disability fraud case involving a Kentucky attorney has been arrested in South Carolina.

According to court documents, Former Social Security Judge David Daugherty was arrested April 5 and held until Thursday over concerns he might be a flight risk.

On Thursday, Daugherty was released on $50,000 bond and placed in the custody of Mary Lee Daugherty. According to court documents, Daugherty is ordered to a mental evaluation.

Attorney Eric C. Conn was indicted Monday along with Daugherty and Dr. Alfred Bradley Adkins who was a clinical psychologist who worked for Conn. They are accused in a scheme to fraudulently obtain more than $600 million in federal disability payments for thousands of social security claimants.

When arraigned Tuesday, Conn and Adkins both pleaded not guilty to the 18 count indictment. Adkins was released on bond during the hearing. Conn was denied bond and remains in federal custody.