Instead of Securing Vet’s Back Pay, She Stole It

Somebody’s going to prison, and I’m cheering. A Missouri woman enrolled as a financial fiduciary through the Department of Veterans Affairs stole $38,000 from a disabled veteran she was supposed to help, and she did it shortly after she was appointed to the role and discovered all that back pay in his account. Not only did she fail to maintain records and reports, she stonewalled even after being faced with VA Office of the Inspector General auditors who demanded explanations and accounting for the funds.

Eventually she pleaded guilty to one felony count of embezzlement and faces up to 10 years in prison, as well as a $250,000 fine and required reimbursement of the money stolen. We’ll know in September how the sentencing goes.

The VA’s fiduciary program was set up a long time ago to help elderly veterans who were unable to handle their finances. At first, someone would be appointed. Then the VA started paying 5 percent of the veteran’s benefits as a fee. That brought out the scammers in the form of allegedly professional fiduciaries who quickly learned to rig the system and steal from the veterans they were supposed to protect.

In 2014, the VA OIG conducted an investigation and concluded that more than $944,000 had been funneled away from veterans. In addition, in some areas of the country, complaints against fiduciaries in the program were not quickly and properly investigated.

Despite the past problems, if you suspect any form of fiduciary abuse, call the VA Fiduciary Program at 1-888-407-0144. Or call the VA at 1-800-827-1000. The Fiduciary Program will investigate and decide if misuse of funds has occurred, and if it did, the VA will try to replace the missing money. It also will get the OIG to pursue a criminal investigation.