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.

From 2007 to 2012, Pearson served as a VA-appointed fiduciary for eight disabled veterans and used the position to embezzle more than $250,000 from several veterans’ accounts.

From 2012 he also ran FTS Tax Services, preparing returns with false credits and fictitious deductions, then obstructed IRS audits with false statements and documents. He underreported his own income as well; the admitted tax loss exceeded $1.5 million.

IRS Criminal Investigation, the FBI and VA OIG investigated. He pleaded guilty to wire fraud, misappropriation by a federal fiduciary, fraudulent tax returns and obstruction.

"Pearson used his position as a fiduciary to embezzle more than $250,000"
— U.S. Department of Justice, Office of Public Affairs

Source: U.S. Department of Justice, Office of Public Affairs. Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).