Department of Veteran Affairs defrauded for $1.9 million

[darrels joy]

Department of Veteran Affairs defrauded for $1.9 million


01:41 PM EST on Thursday, November 20, 2008



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LOUISVILLE, KY - A federal grand jury in Louisville returned an indictment Wednesday against Daniel Ryan Parker, Jeffrey Allan McGill, eleven military veterans and one other person on charges of conspiring to defraud the United States of nearly $1.9 million through the submission of false veterans disability claims to the Department of Veterans Affairs (VA), U.S. Attorney David L. Huber of the Western District of Kentucky announced today.

Parker, also a veteran, was the National Service Office Supervisor for the Disabled American Veterans Service Organization (DAV) in Louisville, Kentucky, and one of Parker’s responsibilities was to assist veterans in their pursuit of military related disability benefits. McGill was a Veteran Service Representative with the VA regional office in Louisville, Kentucky, and among other duties was responsible for reviewing and rating VA disability claims.

The fraudulent claims, per the indictment, resulted in two types of payments to the conspiring veterans. First, false disability claims were back dated resulting in larger lump sum amounts. Second, the recipients also received monthly disability payments. Unless a change of condition is reported, these benefits are for life.





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The grand jury also charges Parker with stealing more than $47,000 in checks made payable to the DAV.
U.S. Attorney Huber praised the “meticulous investigation” by the Department of Veterans Affairs, Office of Inspector General and the Federal Bureau of Investigation. Huber said that “fraud against the United States is a high priority because it takes money from the rightful recipients and the taxpayers.”

Department of Veterans Affairs Inspector General George J. Opfer expressed profound disappointment in the betrayal of trust by McGill and Parker, whose co-workers at VA and DAV, respectively, devote themselves to serving veterans, not enlisting them in a conspiracy to defraud taxpayers. Opfer noted that “his Special Agents vigorously investigate every allegation of fraud made against any VA employee in the conduct of their duties.”

According to the indictment returned by the grand jury, beginning in November 2003 and continuing to November 2008, Parker and McGill recruited friends, relatives, and acquaintances who were military veterans to file false and fraudulent disability claims with the VA. Parker and McGill either altered the veterans' medical records, or created counterfeit medical records, to give the appearance that the veterans had service related disabilities, often resulting in the veterans receiving a fraudulent rating of 100% disability for problems such as hearing loss, depression, or cancer due to Agent Orange exposure during combat in Vietnam.

In addition to falsifying medical records, it is alleged that Parker and McGill also fraudulently backdated claims, resulting in large lump sum retroactive disability payments. When the VA approves a disability claim, it pays benefits dating back to the original date the claim was received. The veterans who participated in the scheme paid kickbacks to Parker and McGill, often two-thirds of their back dated lump sum payments, which in several instances were over $60,000. The participating veterans kept the fraudulent monthly disability payments they received.

Other defendants and veterans charged with fraudulently conspiring with Parker and McGill to receive veteran’s disability benefits are: Randell Lee Adkins, age 61, of Logan, West Virginia, James Edward Bryant, age 42, of LeRoy, West Virginia, Thomas Darrell Bryant, age 38, of LeRoy, West Virginia, Craig Thomas Bush, age 47, of 6900 Walton Way, Crestwood, Kentucky, Guy Allen Condon, age 38, of Mount Prospect, Illinois, James Darrell Grimes, age 61, of 178 Howell Road, Scottsville, Kentucky, Michael Douglas Harper, age 51, of 300 Twigg Lane, Scottsville, Kentucky, Daniel Joseph Milliner, age 46, of Mauckport, Indiana, Susan Diane Smith, age 62, of Hurricane, West Virginia, Joe Davis Snooks, Jr., age 61, of 3137 Youngs Ferry Road, Roundhill, Kentucky, Dean Anthony Toth, age 37, of 6601 Hypoint Ridge Road, Crestwood, Kentucky, and Nicolette Marie Wages, age 37, of Parkersburg, West Virginia.

In the event of a conviction, the maximum potential penalties for Parker are 90 years imprisonment, a $2,250,000 fine, and supervised release for a period of 3 years. The maximum potential penalties for McGill are 70 years imprisonment, a $1,750,000 fine, and supervised release for a period of 3 years. The maximum potential penalties for Toth are 50 years imprisonment, a $1,500,000 fine, and supervised release for a period of 3 years. The maximum potential penalties for Milliner are 40 years imprisonment, a $1,000,000 fine, and supervised release for a period of 3 years. The maximum potential penalties for all other defendants are 20 years imprisonment, a $500,000 fine, and supervised release for a period of 3 years.

The case is being prosecuted by Assistant United States Attorney David Weiser, and it was investigated by the Department of Veterans Affairs Office of the Inspector General and the Federal Bureau of Investigation.
The defendants are scheduled to appear for arraignment before the United States Magistrate Judge on December 16, 2008, in Louisville.

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[MORTARDUDE]

Thank you for posting this !

Larry