The Case Files: 66 Cases
Sixty-six matters from the official record — prosecutions ending in convictions, live indictments, and settlements — every fact drawn from the Justice Department, CFPB, or VA OIG's own releases, with each case's status labeled exactly as the record states it. The billion-dollar failures in this section are systemic; these are the human ones: the fiduciaries who robbed the veterans they were appointed to protect, the insiders who looted the hospitals from inside, the contractors who wore a disabled veteran as a costume, and the schemers who billed the VA's family programs for the dead and the missing-limbed.
Health-care schemes against VA programs
The Ex-NFL Player’s $197 Million Brace Empire
Joel Rufus French secretly ran eight equipment companies that billed Medicare and VA’s CHAMPVA $197M for braces patients didn’t need — including braces for amputees’ missing limbs. He got 196 months.
$197M — 196 months in federal prison; $110.75M restitution; ~$17M forfeited
Eight Braces for One Patient: The $30 Million CHAMPVA Scheme
Chiropractor Mark Loftis billed Medicare, TRICARE and VA’s CHAMPVA over $30M for braces beneficiaries didn’t want — in one case eight braces for a single person. Fourteen years in prison.
$30M+ — 14 years in federal prison; over $8M restitution; over $560,000 forfeited
The $750-an-Hour “Consulting” That Bought a Surgeon
A spinal-implant company paid a surgeon $500–$750 an hour in sham consulting fees tied to how many of its devices he used — then both men worked to obstruct the investigation. Convicted; over $1.3M forfeited between them.
$379,000 / $1.2M+ — Both pleaded guilty (2020); one year of supervised release each; forfeitures of $379,000 and $947,500
2,833 Claims From a “Social Worker” Who Never Was One
She was never a licensed clinical social worker. She told the VA she was, got authorized to treat veterans’ mental health, and submitted 2,833 claims for about $2.7 million. Pleaded guilty; $1.84M restitution.
~$2.7M / 2,833 claims — Pleaded guilty; agreed restitution of $1,838,727
CVS Pays $315 Million Over Invalid Opioid Prescriptions Billed to Federal Programs
The government alleged CVS filled opioid prescriptions that lacked a legitimate medical purpose and billed federal health programs for them. $315M settles the False Claims Act allegations; VA’s inspector general was among the investigators.
$315M — Settled: $315 million paid to resolve the allegations (no admission stated in the source)
$1.2 Billion in Wound-Graft Claims, Grafts on Patients Who Died Within Days
Untrained sales reps ordered the largest amniotic skin grafts for any wound — including on terminally ill patients who died within days — billing CHAMPVA, Medicare and TRICARE $1.2B. Both owners convicted; $309.9M civil settlement on top of prison.
$1.21B / $614.9M — Both pleaded guilty; Gehrke 15.5 years, King 14 years; civil FCA settled at $309,912,916; restitution $614.9M / $605.7M
Walgreens Pays $300 Million Over Millions of Unlawful Opioid Fills
DOJ alleged Walgreens filled millions of unlawful opioid prescriptions — excessive quantities, early refills, dangerous “trinity” combinations — and billed federal health programs. VA OIG assisted the investigation. $300M settled, up to $350M.
$300M — Settled (April 21, 2025): $300M + $50M if sold/merged before FY2032; 7-year DEA agreement; 5-year Corporate Integrity Agreement
The VA’s Own Community-Care Administrator Kept the Overpayments: $179.7M
TriWest ran pieces of VA’s community-care programs — and, per the settlement, received VA overpayments and kept them. $179.7 million, the largest VA-specific corporate resolution in this library. It remained a VA contractor.
$179.7M — Settled (announced Dec. 30, 2020): $179,700,000 paid to the United States
Eight Years of Rigged Drug Prices Charged to the VA: $124M
King misreported the price figures that set federal drug prices — “systemic and widespread,” across its entire product line — overcharging VA/Federal Supply Schedule buyers from 1994 to 2002. $124M plus interest.
$124M — Settled (Nov. 1, 2005): $124 million plus interest; Corporate Integrity Agreement; pricing redone across the whole product line
The “Charity” Copay Funds That Were Really Kickbacks: $122.6M
Three drugmakers allegedly used foundations they funded and steered as conduits to pay patients’ copays for their own drugs — defeating the cost check Congress built into Medicare and CHAMPVA. CHAMPVA is named in the allegations.
$122.6M — Settled (April 4, 2019); five-year Corporate Integrity Agreements for Jazz and Lundbeck
Unlicensed “Specialized” Veteran Rehab, Billed to Community Care: $19.75M
DOJ alleged a rehab billed VA’s Community Care Program for specialized veteran addiction care it wasn’t licensed to provide — same care as everyone else, concealed from inspectors, with false and inadequate records.
$19.75M — Settled (2025): $19,750,000; whistleblower share at least ~$3,555,137
Wrong Countries, Withheld Discounts on VA Sales: $14.5M
Coloplast self-disclosed that it misreported countries of origin on VA-contract products and failed to pass VA the discounts its contract required — overbilling the United States. $14,547,347.
$14,547,347 — Settled (Dec. 12, 2022): $14,547,347; violations self-disclosed by the company
Knee Implants It Knew Were Failing, Sold to VA Patients for a Decade: $8M
DOJ alleged Exactech knew from 2008 that a knee component failed prematurely at an unacceptable rate — and kept selling it for surgeries on VA, Medicare and Medicaid patients through 2018, then did it again with two more knee systems.
$8M — Settled (Sept. 16, 2025): $8 million; approved in Exactech’s Chapter 11 bankruptcy
Fake Pricing Disclosures, Inflated Prices Charged to VA: $6.5M
The Federal Supply Schedule runs on honest commercial-pricing disclosures. DOJ alleged MiMedx’s were false — letting it charge VA inflated prices for tissue grafts sold into VA hospitals. Two former sales reps blew the whistle.
$6.5M — Settled (2020): $6.5 million; whistleblowers receive $1,625,000
It Knew Its System Was Overcharging VA. It Fixed Orders One at a Time.
Omnicell’s pricing system overcharged VA for six years. When customers flagged a wrong price, it credited that order — but never fixed the system, and never checked who else was owed a refund. $4.37M; half designated as restitution to VA.
$4,366,660 — Settled (2025): $4,366,660; whistleblower receives $785,998.80
Spacelabs Pays $2.5 Million for Ignoring the VA's Price-Reductions Clause
Spacelabs settled False Claims Act allegations that from 2014 to 2019 it failed to pass along lower prices its VA contract required — overcharging VA and DoD for patient monitoring equipment. Two former employees blew the whistle.
$2.5M — Settled (announced 2023): $2.5M; whistleblowers received $437,500
Used Hospital Beds Billed as New: Hillrom Pays $2.1 Million
Hillrom settled allegations that for eight years its Direct to Consumer division sold used Clinitron, TotalCare and VersaCare beds but billed Medicare, TRICARE, the VA and Medicaid as if they were new — plus miscoded surfaces and travel time billed as repairs.
$2.1M — Settled (January 2024): $2.1M; claims are allegations only, no determination of liability
Set-aside contracting fraud — stealing from disabled veterans twice
The Figurehead: $240 Million in Contracts Meant for Disabled Veterans
Conspirators installed a service-disabled veteran as a figurehead owner while they ran the company and took $240M in contracts set aside for disabled-veteran-owned businesses. The veteran was the costume.
$240M+ — 27 months in prison; $1.75M fine (Padron)
Straw Owners: Posing as a Woman, a Minority, a Disabled Person and a Veteran
For over a decade, Boykin Contracting used straw owners posing as a woman, a minority, a disabled person and a veteran to qualify for $160M in set-aside contracts. 51 months.
$160M+ — 51 months in federal prison; three years’ supervision
Rent-a-Vet: The Side Deal That Kept 98% of Every Payment
A secret written side agreement said the quiet part out loud: the venture existed to “use the Disabled Veteran Status” of the veteran partner — who got 2% while the non-veteran’s firm kept 98%.
~$11M — Convicted by a federal jury (conspiracy, major fraud, wire fraud, false statements)
Never Served a Day: The Fake Disabled Veteran Who Took $16 Million
John White claimed to be a disabled veteran and won $16M in VA construction contracts. He had never served in the military at all. 41 months.
$16M+ — 41 months in prison; three years’ supervised release; $30,000 fine
The 95% Pass-Through
James Clark — never a service-disabled veteran — ran front companies that won $12M in set-aside contracts and passed up to 95% of the money through to his own ineligible firm.
$12M+ — Convicted by a federal jury (major fraud, wire fraud, false claims)
$671,000 in Bribes to the VA Engineer Who Steered the Work
A contractor paid a VA supervisory engineer $671K in bribes; he steered $6M in VA construction projects to her companies — including one falsely claimed as disabled-veteran-owned. Both went to prison.
$671K / $6M+ — Doremus: 37 months. Machinga: 46 months. $671,975 forfeiture
Snow Removal That Never Happened
A VA contract officer approved invoices for snow removal that was unnecessary or never performed, took bribes through a bookkeeper — and the bookkeeper tipped off the target when the FBI came. All four pleaded guilty.
$347,000 — Garner and Vaughan: one year and one day each. Johnson: five years’ probation. Moore: three years’ probation
VA insiders — the employees who robbed the house
The Director for Hire
While running VA medical centers, William Montague secretly consulted for a design firm bidding on VA jobs — selling it inside information about VA construction. 64 counts. 57 months.
~$390,000 — 57 months in prison after pleading guilty to 64 counts
The Shell Company That Fixed Nothing
A VA supervisory engineer invented HVAC jobs, billed his own hospital through a shell company fronted by his girlfriend, and pocketed over $500K. The jobs did not exist. 64 months.
$500,000+ — 64 months in prison; $565,058.70 restitution
He Confessed to $13,000. He’d Taken $487,000.
A VA travel clerk emailed management admitting he stole about $13,000. The OIG investigation put the real figure at roughly $487,000 in travel reimbursements over four years.
~$487,000 — Two years in prison; $462,256 restitution and forfeiture
The Prosthetics Agent Who Fenced CPAP Supplies for Eight Years
A VA prosthetics purchasing agent used his government card for eight years to buy CPAP supplies and resell them out of state. Over $1.9M. He worked in the department that serves veterans who need equipment to breathe.
$1.9M+ — Two years and three months in prison; $2,041,733.62 restitution
$198,183.84 in iPads, on the Government Card
A Cleveland VA logistics worker bought $198K of iPads and iPhones on his work credit card and fenced them online. His partner was caught in Indiana with $29K of the electronics, 16 iPhones, a loaded Glock, and other people’s credit cards.
$198,183.84 — Each sentenced to 12 months and one day in prison; $198,183.84 restitution (Jagger)
The Cashier Who Drained Bedridden Veterans’ Accounts
A VA cashier withdrew money from the patient accounts of veterans too disabled to walk to his window — then claimed pandemic unemployment while working full-time. Six months in prison.
$57,000+ — Six months in prison; two years’ supervised release with six months on a monitor; over $57,000 restitution
VA Medical Technician Sentenced for $41,666 PPP Loan Fraud
A VA medical technician was sentenced to one year of probation for fraudulently obtaining $41,666 in PPP loans with false applications and fraudulent tax documents, then falsely claiming the full amount as payroll on forgiveness applications.
$41,666 — Sentenced October 29, 2026: one year of probation, after a July 2026 guilty plea to two counts of wire fraud
Benefits fraud, identity theft and stolen valor
Twenty-Five Years as a Dead Man
For 25 years he lived as a real Vietnam veteran. When the veteran died, he told the government the death was reported “in error” — and the checks resumed for five more years. $860,000 taken.
$860,000+ — 30 months in prison; $1,025,544.69 restitution
The Body in the Shed
He kept his quadriplegic veteran uncle locked away, hid the man’s body in a shed when he died, told relatives he was in a nursing home — and kept cashing $1.8M in benefits, some spent on exotic reptiles. 156 months.
$1.8M — 156 months in prison; ordered to repay the money
Bedridden in Las Vegas, Mexico and Jamaica
She claimed to be wheelchair-bound and collected $11,000 a month for 12 years — while vacationing abroad and buying a second home in Las Vegas. Her family billed VA as her caregivers while working other jobs. $1.1M stolen.
$1.1M+ — Lee-Carroll: 17 months; $932,142 restitution. Son: 14 months. Sister: time served
The Disability That Erased the Student Loans
A physician assistant falsified her own medical records to win VA disability — then used the fake disability status to discharge $242,528 in federal student loans. Twelve months.
$242,528 — 12 months in federal prison; $355,179.13 restitution
The Widow Who Wasn’t
Divorced before he died, she claimed to be his widow, took survivor benefits and CHAMPVA, spent thousands on cosmetic surgery — then sued the United States for $7 million. The lawsuit is how they caught her.
~$129,000 — Two months in prison; three years’ supervised release; over $129,000 restitution
Forging His Dead Mother’s Signature, Check After Check
His mother — a veteran’s surviving spouse — died in 2014. The VA kept mailing her survivor checks, and her son forged her signature on every one for years. $163,379.
~$163,379 — 15 months in federal prison; $163,379.76 forfeiture
Thirty-Five Years of a Dead Husband’s Benefits — Charged
Prosecutors allege Gail Starks collected her late husband’s survivor benefits from 1991 to 2026 — concealing a remarriage that ended eligibility — and lied about being married when the VA finally asked in August 2026. $397,120. Indicted, not convicted.
$397,120 — Charged: indicted for theft of government money and false statement (up to 15 years if convicted)
Fiduciary theft — robbing the veterans who can’t hold their own money
The Fiduciary Was His Mother
Appointed by the VA to guard her wheelchair-bound veteran son’s money, she spent it on a car he never used, her own bills, and trips she took without him. 37 months.
$276,450.31 — 37 months in prison (May 13, 2026); full restitution to her son
The Police Sergeant Who Embezzled Eight Veterans
A police sergeant the VA trusted as fiduciary for eight disabled veterans embezzled over $250,000 of their benefit money — and ran a fake-deduction tax business on the side. 48 months.
$250,000+ — 48 months in prison; $252,992 restitution to the VA
The Fiduciary’s Pledge, Broken for Two Years
He pledged to spend a disabled veteran’s benefits on the veteran’s care, comfort and desires. Instead he stole them for over two years — a federal sentence stacked on top of his state one.
$50,000+ — Two years in federal prison, consecutive to his Florida state sentence; $53,567 restitution
GI Bill school fraud — the education thieves
The Largest GI Bill Fraud Ever: $105 Million
California Technical Academy’s CEO pleaded guilty in the largest Post-9/11 GI Bill fraud case on record — nearly $105M lost, fake attendance and grades, and owners impersonating their own students on the phone with regulators.
~$105M — Five years in prison (guilty plea, conspiracy to commit wire fraud)
The Six-Week HVAC Course That Drained $72 Million
Essentially broke, Jonathan Davis got a six-week HVAC course approved for GI Bill money at $18,000–$21,000 a head, collected $72M, and bought a $2.2M house, a Lamborghini, a Ferrari and a Bentley. Veterans testified they felt “bamboozled.” 19+ years.
$72M+ — More than 19 years in prison; $65.2M restitution; $72.5M forfeiture
$20,000 Scuba Lessons: The Dive Shops’ Scholarship Scam
Georgia dive shops billed VA up to $20,000 per veteran for scuba courses and invented “scholarship” students to fake the VA’s 85/15 enrollment rule. Over $6M. All six pleaded guilty.
$6M+ — All six pleaded guilty; Meers: 54 months; $6,085,918.08 restitution. Lanoues: $3,228,921.53 restitution
“Operating Essentially as a Recruitment Mill”: $95.5M
DOJ alleged the second-largest for-profit college chain ran a “high pressure boiler room” paying recruiters per enrollment while certifying it didn’t — across 100,000+ students. The Attorney General named veterans among those harmed. A Title IV case; no GI Bill dollar split is claimed.
$95.5M — Settled (2015): $95.5 million federal-state global settlement; four whistleblower suits and 40 state AGs resolved
VA home-loan fraud & churning
Fake W-2s for $7.3 Million in FHA and VA Loans — Indicted
A loan officer and three recruiters are charged with flooding a lender with fabricated W-2s, pay stubs and bank statements to push $7.3M in FHA/VA loans to borrowers who didn’t qualify. Indictment only — no convictions.
~$7.34M — Charged: indicted Sept. 16, 2026 — conspiracy and false-statement counts (no convictions)
The Servicer That Denied the 6% Cap — Then Punished Asking
DOJ alleged a VA loan servicer refused servicemembers their legal 6% interest cap, lied that rates were already below it, then retaliated against those who asked — accelerating payments and falsely reporting them delinquent to the VA. Settled for $500K+.
$500,000+ — Settled: at least $425,000 to affected servicemembers + $79,380 penalty (the SCRA first-violation maximum)
NewDay USA: Rigged Worksheets and 3,000 Churned Refinances
A repeat-offender VA lender showed veterans side-by-side worksheets engineered to hide that its cash-out refinances cost MORE than their existing loans — on at least 3,000 loans. CFPB: $2.25M penalty.
$2.25M — Settled by CFPB consent order (August 2024); barred from misrepresenting loan costs
The Fake VA Mailers: Nine Companies, $4.4 Million in Penalties
The CFPB’s sweep of deceptive VA-loan mailers — ads stating terms the lender wasn’t prepared to offer, misleading debt-elimination pitches — ended with Low VA Rates, the largest: $1.8M.
$1.8M — Settled by CFPB consent order (2020); advertising compliance official required
Pension poachers — buying veterans’ checks
Buying Disabled Veterans’ Pensions With Contracts That Were Void
Brokers offered disabled veterans lump sums for their future pension checks, structured as “purchases” that were really high-interest loans — and void from the start, because federal law makes pension rights unassignable. Permanently banned.
$2.7M — Settled (CFPB + Arkansas AG, August 2019): permanent industry ban; $200,000 paid on the judgment
Seven Years of Pension Deals, a $1 Penalty, and a Lifetime Ban
Broker Mark Corbett spent years arranging for veterans to sign over future pension and disability pay — plus mandatory life insurance so investors got paid even if the veteran died. The CFPB’s penalty was $1, set by his sworn inability to pay. The ban is permanent.
$1 — Settled by CFPB consent order (Jan. 23, 2019): permanently banned from the pension-advance business
Drug diversion — stealing the medicine
4,000 Oxycodone, Ordered Through the VA’s Own Portal
A VA pharmacy tech used the supplier web portal to order and divert 4,000 oxycodone, 3,300 hydrocodone and 14,000+ Viagra/Cialis pills, falsified the invoices, and texted the drugs out the door to a street distributor.
$77,700 / $160,000+ — All three pleaded guilty to conspiracy to distribute oxycodone; VA OIG reported prison terms of 30 and 48 months among the defendants
The Pharmacy Chief Who Skimmed the Bottles
For three years, the man in charge of the Erie VA’s pharmacy took hydrocodone and oxycodone out of bottles that were waiting to be delivered to veterans. Two years’ probation.
Not stated in the release ("multiple dosage units") — Convicted of federal drug-law violations; sentenced to two years’ probation (2022)
2,000 Vials: The Anesthetist in the Dispensing Machine
A VA nurse anesthetist used patients’ protected information and falsified documents to pull 2,000+ vials of fentanyl, morphine and hydromorphone from VA dispensing machines — sometimes coming in on her days off to do it.
2,000+ vials — Pleaded guilty to five counts; three years’ probation (Nov. 2021)
Rent-a-vet & SDVOSB pass-through schemes
The Front Companies Got 1–3%. The Real Contractors Got the Contracts.
Disabled-veteran front companies won set-aside contracts while two firms that weren’t eligible priced the bids, picked the subs and ran the jobs — paying the fronts about 1–3%. $21.3M. Unusually, the settlement records the defendants admitting responsibility.
$21.3M — Settled (2026): $21.3 million paid jointly; defendants admitted and accepted responsibility in the agreement
Stolen valor & fake-service fraud
He Never Served: Jury Convicts Stolen-Valor Fraudster Who Posed as a Decorated Marine
Wicker spent years posing as a Purple Heart Marine who deployed to Iraq, backing it with a counterfeit DD-214 and fake medal certificates. The VA paid him more than $140,000. Marines from the unit he claimed testified he was never there.
$140K+ — Convicted by a federal jury on all counts (Nov. 21, 2025); sentencing pending
Fake Combat Veteran Drew Three Years of VA Medical Care — While His Claimed Service Years Were Spent in Prison
Dyson claimed Army combat service, a Purple Heart and a Bronze Star, and took VA medical treatment from 2022 to 2025. He was never in the military — during part of his claimed service he was incarcerated in Massachusetts. 48 months.
$28,118 — Sentenced (July 2026): 48 months in federal prison; $28,118.37 restitution
The Lone-Survivor Story Was Invented: 16 Months for Stolen Valor
Bass claimed to be a Marine combat veteran who alone survived a 2010 Afghanistan ambush — a story that raised donations and even landed her a newspaper profile. She never served. 16 months in federal prison.
16 months — Sentenced (July 30, 2026): 16 months in prison; 3 years of supervised release
Fiduciary & survivor-benefits theft
She Forged Her Dead Great-Aunt's Signature for a Decade to Keep the Survivor Checks Coming
The great-aunt's VA survivor benefits began in 1945 and should have ended at her 1999 death. Horton's mother forged the signature until 2011 — then Horton took over the forgeries until 2022. About $181,714 stolen.
$181,714 — Sentenced (2023): 4 months in prison + 4 months home detention; $181,713.58 restitution
VA Fiduciary Pleads Guilty to Stealing $160,394 From a Family Member in Her Care
Appointed to protect a family member's money, Ferrell instead withdrew the veteran's VA benefits and Social Security payments from a joint account for two years and spent them on herself. $160,394.02 in restitution owed.
$160,394 — Pleaded guilty (July 2026); sentencing set for November 16, 2026 — faces up to 10 years
Fiduciary Took One Dying Veteran's Money 45 Times — and Spent It in the Maldives
Rivers managed money for four veterans. She admitted stealing $135,000+ from one elderly, dying veteran at the Cincinnati VA hospital, and $23,000+ from three others — spent on travel to London, Zurich, Vienna, the Maldives.
$158K+ — Pleaded guilty (Feb. 2, 2026) to misappropriating funds as a fiduciary; faces up to 5 years — sentencing pending
Disability & benefits fraud
Too Disabled to Work — While Running a Business and Traveling the World: 18 Months
For nine years Milbourne claimed service-connected injuries left him unable to work. In reality: international travel, his own business, intensive workouts several times a week. About $241,260 in disability benefits stolen.
$241,260 — Sentenced (2026): 18 months in prison; $241,690 restitution + $20,000 fine
Jury Convicts Veteran Who Claimed He Needed Full-Time Care While Managing Federal Contracts
For nine years Bradford reported he couldn't manage his medications, finances or transportation, drawing VA family-caregiver payments. Meanwhile he worked as a GSA project manager overseeing multi-million-dollar contracts. Over $170,000.
$170K+ — Convicted by a federal jury (2026) of conspiracy and theft of public money; sentencing pending
Legally Blind on Paper — a Firearms Specialist and School Guardian in Real Life
Smith told the VA his vision prevented him from driving or working, and collected more than $240,000 in disability benefits from 2017 to 2021 — while working as a firearms specialist and school guardian who could drive and read.
$240K+ — Pleaded guilty (announced May 4, 2026) to receiving stolen government money; sentencing pending
Fake PTSD, a Purple Heart That Never Existed, 14 Years of Checks: 33 Months
McMains claimed PTSD left him unable to work or care for himself, and backed it with a Purple Heart he was never awarded. Nearly 14 years and over $779,000 across VA, Social Security and Medicare. 33 months.
$779K+ — Sentenced (January 2025): 33 months in federal prison; restitution $378,380.82 to VA, $357,847.80 to SSA, $43,451.56 to CMS
Claims sharks and accreditation fraud
VetLink Solutions Pays $1.95 Million for Charging Disabled Veterans Unaccredited Claims Fees
An unaccredited claims firm that charged disabled veterans contingency fees of up to $12,000 settled Arizona Consumer Fraud Act claims for $1.95 million; $1.2 million in restitution checks went out to veterans the week of October 28, 2026.
$1.95M — Settled by consent judgment (Superior Court of Arizona, Maricopa County, No. CV2026-019999; judgment entered June 2026): $1.95M total; restitution distribution announced October 28, 2026
All cases sourced to U.S. Department of Justice releases, each linked on its case page. Compiled October 2026.