Based upon the information you have given I will answer your questions but also ask questions of my own.
1. My question is this SSD (Social Security Disability) fraud? Maybe, but maybe not. True, there are rules against working and receiving SSDI benefits. However, there are rules that allow working and receiving SSDI benefits. These rules were designed to help individuals get off the benefits and back to work. Of course, one has certain responsibilities when receiving Disability benefits, and reporting a return to work is one of them. So, if the individual reported to SSA, returned to work, and has not worked more months than allowed in the trial work period, this is not fraud. The SSA website states: "During your trial work period, you will receive your full Social Security benefits regardless of how much you are earning as long as you report your work activity and you continue to have a disabling impairment." Notice that the amount earned in those trial work months does not have a maximum, and depending precisely on the amount per month it may not count as a "trial work period" month if the amount is small enough.
2. Should I report this? This is a very serious charge with dire consequences. If you feel that fraud is being committed, then yes, report it. Fraud is a crime, it is serious, and flagrant violations should be reported.
You seem very sure of your facts: age, monthly income, location of work, status as current recipient of SSDI benefits ... are you sure? Are any of these "assumptions" or "estimates" or "beliefs." Are you sure that this person has not complied with the rules referenced above? This link will let you know the steps to take and the information necessary to report fraud to the SSA.
3. If it is fraud what are the consequences of committing this fraud? First, there is an investigation. Only IF fraud is determined to have occurred by the investigators is a notice issued by SSA, requiring repayment of benefits. The individual accused has rights to appeal, and to continue to receive benefits if they so request with the knowledge that repayment of those additional benefits will be required if all appeals are unsuccessful.
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