The Social Security Administration paid Lori Vallow-Daybell nearly $23,000 between October 2019 and January 2020. The money was meant for her children — Tylee Ryan, 16, and J.J. Vallow, 7, long after police believed they had died.
Vallow-Daybell received monthly Social Security payments of $5,740 for months long after police believed the children had died. Social Security paid both children $1,951 a month in benefits while also giving Vallow-Daybell a “Mother Child Care” allotment of around $1,900 a month.
Various witnesses presented evidence of fraud during Chad Daybell’s triple murder trial on Wednesday at the Ada County Courthouse. Daybell is married to Vallow-Daybell and has been since Nov. 5, 2019.
Chad Daybell is charged in the murders of Tylee and J.J. He is also accused in the death of his first wife, Tammy Daybell. Additional charges include insurance fraud where investigators say Chad accepted $430,000 in life insurance payments from two insurance policies following Tammy’s death. He also faces grand theft charges involved with the Social Security funds.
Wednesday’s hearing focused on the finances of Lori and Chad as well as the Social Security money meant for Tylee and J.J.
Rexburg Police Detective Sgt. Chuck Kunsaitis was the first to take the stand Wednesday morning. He told of joining the investigation on Nov. 27 with fellow officer Ray Hermosilla in conducting search warrants at apartments where Vallow-Daybell, her brother Alex Cox, and niece Melanie Boudreaux Pawlowski lived on Pioneer Road.
Kunsaitis noted how in one apartment they found “evidentiary items,” one of which was a printed invoice for a Rexburg storage unit. Kunsaitis obtained a search warrant for the storage unit where officers found a tote bin, a baseball glove, ice skates, bicycles and a scooter.
Kunsaitis secured a warrant for a post office box at the Sugar City Post Office. He told Madison County Prosecutor Rob Wood the Gilbert, Arizona, Police Department had informed them Vallow-Daybell was renting a post office box in Sugar City.
“There was a large bundle of unopened mail, approximately 100 pieces or so,” Kunsaitis said. “(Mail was) addressed to both Lori Vallow, and her husband, Charles Vallow, who was deceased.”
There was also some mail there for Cox, Kunsaitis said.
“Was there anything of interest to the investigation?” Wood asked.
Kunsaitis said there were several pieces of mail from financial institutions, cellphone bills, and IRS and Social Security Administration letters.
Vallow-Daybell’s apartment manager had also informed investigators there was some mail remaining in the apartments, Kunsaitis said.
“We served subpoenas to different financial institutions, the cellular device companies,” he said.
Wood asked what the purpose of obtaining the financial records was.
“In a missing person case, a lot of info you can glean from going through financial records,” Kunsaitis said. “(You) look through and see if it’s a regularly used business account, savings account. (You) get a peek into how people spend their money, eating out a lot or paying bills, it’s understanding how people go about their daily lives.”
Kunsaitis focused on the various accounts the family had. He noted that Tylee was very active with her bank account.
“She is spending money. She is receiving death benefit stipends from her father Joe Ryan who passed away April 3, 2018,” he said. “Tylee was receiving death benefits that were regularly deposited into this account.”
Tylee also used her account to pay for her 2018 Jeep Wrangler her stepfather Charles Vallow had purchased for her. She also spent money at “brick and mortar” stores but also relied on the internet to make purchases.
During the middle of August, Vallow-Daybell contacted Social Security and had Tylee’s monthly stipends transferred to Vallow-Daybell’s account. On Sept. 1 the family moved to Idaho.
The last time Tylee was seen alive was on Sept 8, 2019, Kunsaitis said.
“There was a photograph where she was in Yellowstone on the eighth of September,” he said.
Purchases were made with Tylee’s Social Security money at Costa Vida on Sept. 17, 2019, and again on Oct. 7, 2019, Kunsaitis said.
Wood asked what was significant about those dates.
“Just a complete opposite (of Tylee’s spending habits) up until this point,” Kunsaitis said. “Everything is done online. The money’s coming in from Lori’s account. She would make deposits into Tylee’s account. Those moneys would then be Venmoed to Colby Ryan, who was Lori’s son.”
On Sept. 18, two deposits from the Social Security Administration were made, one for $3,902 and the second for $4,157, Kunsaitis said.
“Is there anything significant about that deposit date for you?” Wood asked.
It was near the date when J.J. was last seen, said Kunsaitis, who choked up at the memory.
“J.J. was killed a few days later,” he said. “At or around the 22nd or 23rd.”
Chad’s finances were also under scrutiny during the hearing. FBI Forensic Accountant Michael Douglas served as a witness to Daybell’s spending.
Douglas reported that Chad and Tammy Daybell ran the Spring Creek Book Company where they published and sold books. He noted two credit cards were used for the company.
On Sept. 8, Tammy Daybell increased her life insurance, Douglas reported. He also noted Chad Daybell bought a prepaid phone. That month he also initiated a refinance with Wells Fargo. The next day police believe that Cox tried to kill Tammy Daybell. Ten days later, Tammy died.
“On Oct. 24, Chad filed with the life insurance Prime America and canceled the refinance with Wells Fargo,” Douglas said. “On Oct. 30 (Chad) received life insurance (benefits) with LifeMet.”
Eleven days later, and on Nov. 5, 2019, Chad married Lori in Hawaii. On Nov. 19, the newlyweds took Chad’s children to Knott’s Berry Farm.
“On December 20, I also noted Chad had transferred $1,000 each to three of his children — the three that lived near him,” Douglas said.
The following month during the first search of Chad Daybell’s property, Chad transferred $1,500 to a son’s account. On June 9, 2020, Chad sent $8,000 each to his three older children who lived in the area.
“It was the same day of the search and the day we located J.J. and Tylee’s bodies on the property,” Douglas said.
On Wednesday morning, Boyce left the courtroom startled when he suddenly called for a sidebar with Chad Daybell’s attorney John Prior and Wood. When Boyce returned, he assured the jury that none of the attorneys had done anything wrong.
“We were concerned (there was) some unauthorized recording,” Boyce said. “No unauthorized recorded is permitted. If you have a device doing that, you’ll be required to leave (or) be held in contempt of court.”
Testimony continues Thursday.
(0) comments
Welcome to the discussion.
Log In
We welcome comments, however there are some guidelines:
Keep it Clean: Please avoid obscene, vulgar, lewd, racist or sexual language. Don't Threaten: Threats of harming another person will not be tolerated. Be Truthful: Don't lie about anyone or anything. Be Nice: No racism, sexism or any sort of -ism that is degrading. Be Proactive: Report abusive posts and don’t engage with trolls. Share with Us: Tell us your personal accounts and the history behind articles.