L@@K - Must Watch OIG Report on Fraud, Scheme, Bribery, Guilty!!!

Описание: Office of Investigations
This office investigates potential crimes and civil violations of law involving VA programs and
operations concerning VA employees, contractors, beneficiaries, and other individuals. These
investigations focus on a wide range of matters, including healthcare, procurement, benefits,
construction, and other fraud; cybercrime and identity theft; bribery and embezzlement; drug offenses;
and violent crimes. The following investigations had significant developments this month.
Healthcare Investigations
Former VA Employee Sentenced in Connection with Medical Supply Bribery Scheme
A former chief of environmental management service at the Philadelphia VA Medical Center, who was
responsible for supervising the ordering of goods and services at the facility, and other employees at
multiple VA medical centers placed orders for supplies and services in exchange for cash bribes and
kickbacks from corrupt vendors. The prices of supplies were often grossly inflated, and some orders
were only partially filled or not fulfilled at all. The vendors charged in this case were responsible for
over $37.6 million in purchase card orders and contracts. After previously pleading guilty to conspiracy
to bribe a public official, the former chief was sentenced in the Eastern District of Pennsylvania to
six months’ imprisonment, two years’ supervised release, and restitution of approximately $443,000.
Pharmaceutical Executive Pleaded Guilty to Conspiring to Sell Excessively Priced
COVID-19 Personal Protective Equipment to VA
The owner of a pharmaceutical secondary wholesaler conspired with others to buy and then hoard
designated scarce materials—including personal protective equipment—at the height of the COVID-19
pandemic. The defendant used deceitful means to sell the equipment to VA, defrauding at least a dozen
VA medical centers by selling the equipment at excessive prices. In total, VA paid $330,000 for this
equipment. The defendant pleaded guilty in the Southern District of Mississippi to conspiracy to defraud
the United States. The VA OIG, FDA Office of Criminal Investigations, and FBI investigated the case.
Former VA Medical Center Supervisor Charged for Role in Bribery Scheme
A VA OIG investigation resulted in charges alleging that a former supervisor at the Philadelphia VA
Medical Center used his government-issued purchase card to place orders with a particular company for
medical supplies that totaled over $1.6 million. The former supervisor, who allegedly received cash
payments of more than $28,000 from the owner of this company, was charged in the Eastern District of
Pennsylvania with accepting gratuities as a public official.
Two Former VA Nurses Made False Statements Regarding Patient’s Death
Two former registered nurses at the Oklahoma City VA Medical Center made false statements to
investigators related to the suspicious death of an inpatient veteran. Specifically, they stated that they did

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MARCH 2023 HIGHLIGHTS
VA Office of Inspector General
not pause medication being administered to the veteran prior to his death. Both nurses pleaded guilty in
the Western District of Oklahoma to false statements. The VA OIG investigated the case.
Benefits Investigations
Navy Doctor Admitted to Role in Life Insurance Fraud Scheme
An investigation by the VA OIG, FBI, and Naval Criminal Investigative Service (NCIS) resulted in
charges alleging that several coconspirators submitted fraudulent claims through the VA-administered
Traumatic Servicemembers Group Life Insurance (TSGLI) program. The scheme involved submitting
TSGLI claims that reflected fraudulent narratives of catastrophic injuries and exaggerated the loss of
activities of daily living, generating payouts of $25,000 to $100,000 each. The loss to TSGLI is about
$2 million. A Navy doctor pleaded guilty in the Southern District of California to conspiracy to commit
wire fraud. To date, nine other individuals have been convicted in connection with this scheme.
Spouse of Veteran Sentenced for Compensation Benefits Fraud
According to an investigation by the VA OIG and Social Security Administration (SSA) OIG, a veteran
fraudulently sought (and subsequently received) a 100 percent disability rating with special monthly
compensation benefits for the alleged loss of the use of both feet based on false statements made during
his military out-processing physical and subsequent VA examinations. Based on alleged false statements
made by the now deceased veteran and his spouse, the veteran also received Social Security disability
payments and VA grants for specially adapted housing and automobile adaptive equipment. After
receiving a home from a private charity in 2013, multiple witnesses, local media, and investigators
observed the veteran walking, driving, performing yard work, and playing basketball. The total loss is
more than $582,000 to VA, nearly $152,000 to SSA, and $339,000 to the private charity.