Former VA Official Pleads Guilty In $1.4M Fraud Scheme – WBAL
A former Deputy Chief of Veterans Claims in the Maryland Department of Veterans Affairs pleaded guilty Monday to extortion in connection with a scheme to fraudulently obtain over $1.4 million in veterans benefits.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs Office of Inspector General.
In January 2011, U.S. Army veteran David Clark, age 67, of Hydes, Maryland, retired from the Maryland Department of Veterans Affairs as the deputy chief for veterans claims. Clark’s duties included submitting claims and documentation on behalf of veterans in Maryland who appointed the MDVA to represent them in obtaining federal benefits from the VA. Clark also submitted documents to the Maryland State Department of Assessments and Taxation in support of veterans’ applications for property tax waivers.
According to his plea agreement, while serving at Deputy Chief of Claims, Clark fraudulently obtained VA compensation for himself and at least 17 others, by submitting false documents to the VA purporting to show that the claimants had been diagnosed with diabetes, and in some cases, that the claimant had served in Vietnam when they had not. The claimants paid Clark half of the retroactive lump sum payment they received in cash or some other amount of cash. These payments to Clark were made in unmarked envelopes, at MDVA offices in Bel Air; at the Fallon Federal Building in Baltimore; and at other locations.
In support of these claims, Clark submitted fake letters from doctors purportedly treating the veterans, which falsely stated that the claimants suffered from Type II diabetes. Clark used the names and addresses of real doctors who were unaware of his conduct. Each letter stated that the diagnosis of Type II diabetes had been made a year or more prior to the date of the letter, which entitled each claimant to a retroactive lump-sum payment. The letters also stated that the claimants were currently taking insulin, which increased the amount of compensation the VA paid the claimant.
Clark created counterfeit versions of a Defense Department form for himself and five others, which falsely stated that each had served in Vietnam. These forms also falsely stated that these individuals had received various awards and decorations for the Vietnam service, including that Clark himself had been awarded the Purple Heart Medal. These documents were submitted to the VA to provide false evidence that they qualified for compensation benefits for diabetes.
Clark also submitted false certifications to the SDAT, on behalf of claimants that owned homes in Maryland, that the filers were entitled to a property tax waiver due to a service-connected disability.
The false claims cost the government $1,151,219 and the loss from the property tax evasion is $255,555, for a total loss of $1,407,134, officials said.
Clark faces a maximum sentence of 20 years in prison and a $250,000 fine. Clark has agreed to forfeit $1,407,134.
A sentencing date is scheduled for Nov. 17.
Eight other veterans have previously pleaded guilty to paying Clark cash to submit false documentation to receive VA benefits:
* John Bratcher, 56, of Conowingo, Maryland, a veteran of the U.S. Air Force
* Richard Genco, 71, of Baltimore, a veteran of the U.S. Navy
* Paul Heard, 65, of Baltimore, a veteran of the U.S. Navy
* George Kulla, 68, of Baltimore, a veteran of the U.S. Army
* Sandra Tyree, 65, of Baltimore, a veteran of the U.S. Air Force and former employee of the U.S. Department of Veterans Affairs
* Kenneth Webster, 68, of Pasadena, Maryland, a veteran of the U.S. Marine Corps and a former police officer with AMTRAK
* Raymond Sadler, 63, of Middle River, Maryland, a veteran of the U.S. Marine Corps
* Kenneth Williams, age 65, of Baltimore, a veteran of the U.S. Marine Corps.