tdiu Oig July 2014 Highlights -

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Department of Veterans Affairs

Office of Inspector General

July 2014 Highlights

http://www.va.gov/oig/pubs/highlights/VAOIG-highlights-201407.pdf

Some crazy stuff here:

CRIMINAL INVESTIGATIONS

Veteran’s Widow Arrested for Murder

A veteran’s widow was arrested for first degree murder and conspiracy to commit first

degree murder. A VA OIG, Social Security Administration (SSA) OIG, Tennessee

Bureau of Investigation, and District Attorney’s Office investigation revealed that the

defendant and her current spouse conspired to murder her previous husband, a combat

veteran and VA beneficiary, by forcing him to overdose on prescription drugs and then

staging a crime scene to make it appear that he committed suicide. The defendant later

applied for Dependency and Indemnity Compensation (DIC) benefits and falsely

claimed that her husband’s drug overdose was related to his service-connected

post-traumatic stress disorder. The defendant’s current spouse has pled guilty to

conspiracy to commit first degree murder and has agreed to fully cooperate with the

prosecution against his wife in exchange for a reduced sentence. The loss to VA is

over $100,000.

Training Center Owners Arrested for Theft

Two owners of a training center were arrested for grand theft, organized scheme to

defraud, and conspiracy. An OIG investigation revealed that the defendants owned and

operated a school that billed VA between $5,750 and $7,750 for courses taken by

veterans as part of their Post-9/11 G.I. Bill benefits, while charging non-veterans

between $249 and $645 for the same courses. The loss to VA is $635,465.

Augusta, Georgia, VAMC Nurse Pleads Guilty to Assault

An Augusta, GA, VAMC nurse pled guilty to assault and agreed to surrender his nursing

license. An OIG and VA Police Service investigation revealed that the defendant

entered a patient’s room, while two other staff members attempted to treat the patient,

and punched the patient causing serious bodily injury.

VA Office of Inspector General 10July 2014 Highlights

Veteran Convicted of Assault of Miami, Florida, VA Physician

A veteran was convicted at trial of assault on a VA physician. An OIG investigation

revealed that the defendant became angry at how long he had to wait for his

appointment for pain medication and subsequently assaulted his Miami, FL, VAMC

physician.

Veteran Sentenced for Making Bomb Threats to VA

A veteran was sentenced to 3 years’ probation and ordered to attend special counseling

pertaining to education, employment, and self-help after pleading guilty to aggravated

harassment. An OIG investigation revealed that the defendant made bomb threats

against a VAMC because of a reduction in benefits and a wage garnishment letter he

received in the mail.

Veteran Arrested for Making Threats to VA

A veteran who threatened to blow up VA, put his guns to use, and also threatened the

Postal Service was arrested after fleeing for 10 days from his residence in Delaware.

The veteran was located and arrested in another state and is awaiting extradition.

Fiduciary Sentenced for Misappropriation

The fiduciary of a 100 percent service-connected incompetent veteran pled guilty to

theft, misappropriation by fiduciaries, and Social Security representative fraud. A VA

OIG and SSA OIG investigation revealed that the fiduciary failed to provide fiduciary

accountings as required and misappropriated $321,512 in VA and Social Security funds.

Former Fiduciary Pleads Guilty to Misappropriation

A former VA fiduciary pled guilty to misappropriation by a fiduciary. An OIG

investigation determined that the fiduciary stole $28,305 in VA funds that should have

been paid to a nursing home on behalf of the veteran. The defendant embezzled the

funds for use in a failed construction business.

Las Vegas, Nevada, VAMC Employee Convicted of Seeking Sexual Relationship

with Young Girl

A Las Vegas, NV, VAMC employee was convicted at trial of coercion and enticement.

An OIG and local police investigation revealed that the defendant used VA computers to

post ads on Craig’s List stating that he was seeking a sexual relationship with a young

girl. The employee corresponded with an undercover officer, who he believed was a

14-year-old girl, and was subsequently arrested when he arrived at a meeting location.

West Palm Beach, Florida, VAMC Employee and Husband Sentenced for Drug

Trafficking

A West Palm Beach, FL, VAMC employee and her husband were sentenced to a

combined 71 months’ incarceration and assessed $160,292 in fines and court fees after

pleading guilty to trafficking oxycodone and the sale of marijuana. These sentences

stemmed from a 7-month OIG and local drug diversion task force investigation.

Operation Tango Vax focused on combating the sale and distribution of illicit and

controlled prescription pharmaceutical drugs at the West Palm Beach, FL, VAMC

VA Office of Inspector General 11July 2014 Highlights

and the surrounding community. The investigation identified that the majority of all

criminal activity occurred at the medical center and resulted in the seizure of over

3,000 oxycodone pills, two vehicles, and $180,920 in cash.

VAMC Employees Arrested for Drug Diversion

A Mountain Home, TN, VAMC nurse was indicted and arrested for theft of a controlled

substance. An OIG and VA Police Service investigation revealed that on numerous

occasions the defendant diverted oxycodone tablets from a psychiatric patient. The

defendant subsequently confessed to stealing the veteran’s narcotics. Administrative

action is also pending against the defendant. In addition, a Gainesville, FL, VAMC RN

was arrested for fraudulently acquiring controlled substances. An OIG investigation

revealed that on multiple occasions the defendant removed hydromorphone from

medical center Pyxis machines for her own use. Finally, an Atlanta, GA, VAMC

pharmacist was charged with theft by taking after an OIG investigation revealed that the

defendant stole pills from the VA pharmacy and attempted to conceal them in her

personal bag. The defendant subsequently admitted to the theft of the drugs.

Former Bath, New York, VAMC Nurse Sentenced for Drug Diversion

A former Bath, NY, VAMC licensed practical nurse was sentenced to 5 years’ probation

after pleading guilty to possession of oxycodone. An OIG and VA Police Service

investigation revealed that the defendant diverted medications intended for patients for

personal use.

Medical Equipment Company Reaches Civil Settlement with Federal Government

A medical equipment company reached a civil settlement of $6 million with the Federal

Government. The agreement resulted from a joint VA OIG, Health and Human Services

OIG, Department of Labor (DOL) OIG, and Department Of Defense (DoD) OIG

investigation into allegations that the medical equipment company entered into a

kickback scheme by creating personal service agreements with staff members of

physician offices to promote the use of the company’s bone growth stimulators. The

bone growth stimulators are medical devices used to repair bone fractures that are slow

to heal. The company also refurbished used bone growth stimulators and billed the

Government for the price of new bone growth stimulators. VA will receive $66,488 of

the settlement.

Veteran Sentenced for Credit Card Fraud

A veteran was sentenced to 366 days’ incarceration after pleading guilty to a variety of

credit card fraud charges after an OIG and VA Police Service investigation revealed that

the defendant stole a VA physician’s purse while receiving treatment at the West Palm

Beach, FL, VAMC and used the physician’s credit cards to make fraudulent

transactions.

Non-Veteran Arrested for Identity Theft

A non-veteran pled guilty to access device fraud and aggravated identity theft. An OIG,

Internal Revenue Service Criminal Investigation Division (IRS CID), and local sheriff’s

office investigation revealed that during an undercover operation the defendant

VA Office of Inspector General 12July 2014 Highlights

purchased what he believed to be a Tampa, FL, VAMC patient’s PII. The defendant

subsequently used the “controlled” PII, in conjunction with a deceased individual’s PII,

to file $307,721 in fraudulent tax returns.

Defendant Pleads Guilty to Fraud

An individual pled guilty to a variety of identity theft fraud charges after an OIG and VA

Police Service investigation revealed that the defendant, along with a Palo Alto, CA,

VAMC employee and two other defendants, conspired to steal the PII of a VAMC

employee and used the information to create unauthorized credit card accounts and

counterfeit checks. Criminal charges have also been filed against the VA employee and

the other two subjects. The defendants used the credit card accounts and counterfeit

checks to make purchases at various retail stores. The purchased items were then

either sold or traded for narcotics.

Veteran Sentenced for VA Compensation Fraud

A veteran was sentenced to 24 months’ incarceration, 3 years’ supervised release, and

ordered to pay restitution of $108,489 after pleading guilty to theft of Government funds

and conspiracy to make false statements to Federally-licensed firearms dealers. An

OIG investigation revealed that the defendant obtained VA compensation benefits by

claiming the loss of the use of both legs. The veteran was observed ambulating freely,

driving a vehicle, mowing grass, and feeding horses. The veteran’s wife was placed

into a pre-trial diversion program and ordered to pay restitution of $18,000 for her part of

the scheme. Additionally, the veteran’s mother was sentenced to 1 year of probation

and the veteran’s stepfather was sentenced to 3 years’ probation, to include 6 months’

home detention, after pleading guilty to conspiracy in making false statements to

Federally-licensed firearms dealers. The mother and stepfather purchased over

25 firearms for the defendant, who is a registered sex offender and is prohibited from

possessing firearms due to a prior felony conviction for committing a lewd act with a

minor. The loss to VA is $159,297.

Veteran Sentenced for Theft of Government Funds

A veteran was sentenced to 24 months’ probation, 6 months’ home detention,

100 hours’ community service, and ordered to pay VA $116,233 (constituting the

remaining balance of the original $122,993 loss to the Government) in restitution after

pleading guilty to theft of Government funds. A VA OIG, IRS CID, and DOL OIG

investigation revealed that the defendant was employed as a building contractor while

fraudulently receiving Individual Unemployability benefits.

Veteran Sentenced for VA Pension Fraud

A veteran was sentenced to 3 years’ incarceration after pleading guilty to theft. An OIG

investigation revealed that the defendant falsified his income in order to qualify for VA

pension benefits.

Daughter of Deceased DIC Beneficiary Ordered to Repay VA

The daughter of a deceased DIC beneficiary, who was previously charged in a civil

complaint, agreed to the stipulation of a civil judgment in favor of VA that ordered the

VA Office of Inspector General 13July 2014 Highlights

defendant to pay $162,954. An OIG investigation revealed that the defendant, a joint

account holder on her deceased mother’s bank account, failed to report her mother's

May 2006 death to VA and then used the VA funds deposited after her mother’s death

for personal expenses and to repair her deceased mother's residence.

Veteran Sentenced for Wire Fraud

A former U.S. Marine Corps Captain was sentenced to 4 months’ incarceration, 1 year

of home confinement, and ordered to pay $90,602 in restitution after pleading guilty to

wire fraud. An OIG and Naval Criminal Investigative Service investigation revealed that

the defendant failed to inform VA that he returned to active duty and continued to

receive VA disability benefits that he was not entitled to receive. The defendant also

falsely claimed military housing reimbursement for rent he never paid. Also, while on

active duty the defendant tried to increase the amount of his improper disability

payments. The loss to VA is $41,862 and the loss to DoD is $48,740.

Home Care Owner Indicted for Wire Fraud Involving Deceased Veteran

A defendant was indicted for wire fraud after a VA OIG and SSA OIG investigation

revealed that the defendant owned and operated a personal care home where a veteran

beneficiary resided. After the veteran’s death in November 1997, the defendant stole

VA and SSA benefits that were direct deposited to a joint account. The approximate

loss to VA is $258,000.

Veterans Indicted for Doctor Shopping for Controlled Medication

A total of 25 veterans were indicted for obtaining prescription medication by fraud,

deceit, or subterfuge and theft of Government property. To date, 23 of the defendants

have been located and arraigned on these charges after an OIG, State, and local

investigation revealed numerous veterans were simultaneously obtaining controlled

medication from VA and outside sources. Each veteran and their respective VA

physicians were interviewed and provided information in furtherance of the cases. The

U.S. Attorney for the District of South Carolina worked in conjunction with the local

coordinator of the VA’s Veterans Justice Outreach Program to pursue appropriate

judicial avenues.

Veteran Pleads Guilty to Drug and Weapon Violations

A veteran pled guilty to a variety of drug charges and knowingly possessing and

transferring a machine gun. As part of the plea, the defendant agreed to forfeit a

number of long guns, handguns, and ammunition confiscated during the arrest and

execution of a search warrant at his residence. An OIG, Bureau of Alcohol, Tobacco,

Firearms and Explosives, Defense Criminal Investigative Service, and local police

investigation revealed that the defendant participated in a plan with at least two other

veterans in the theft and transport of at least two machine guns allegedly supplied from

Fort Bragg. Controlled buys of the guns were conducted, and the other veterans were

arrested based on those purchases. This defendant continued his illicit activity to

include selling a shotgun, ammunition, a bullet proof vest, and his VA prescription

medications to one of the previously arrested veterans.

VA Office of Inspector General 14July 2014 Highlights

Veteran Arrested for Travel Benefit Fraud

A veteran was arrested for grand larceny relating to beneficiary travel fraud. A VA OIG,

NY State Medicaid OIG, and NY District Attorney’s Office investigation revealed that on

513 occasions the defendant claimed and received Medicaid-paid transportation to and

from the Montrose, NY, VAMC while also being reimbursed for travel by VA. The loss

to VA is $19,733.

[Vync]

So, it was business as usual...