The benefit was for a 20-year Marine Corps veteran with ALS.
“BOSTON – A New Bedford man has been indicted on charges of stealing more than $450,000 in disability benefits issued by the Veterans Benefits Administration (VBA) to a 20-year U.S. Marine Corps veteran with amyotrophic lateral sclerosis (ALS).”
Joseph Smith, 71, was charged with one count of theft of government benefits and one count of conspiracy to steal government benefits. Smith is currently in custody on unrelated charges and is scheduled to appear in federal court in Boston on June 11, 2024 at 12:30 p.m.
According to the indictment, shortly after the victim was diagnosed with ALS in August 2015, the VBA approved her application for disability benefits and provided her with monthly payments of approximately $8,318. Beginning in September 2015, the VBA began making payments by mailing monthly checks to the victim’s former home in New Bedford, where she had been living with Smith’s relatives before her hospitalization.
Between 2015 and approximately 2020, while the victim was hospitalized for ALS, Smith and others allegedly received monthly VBA disability payments from the victim and deposited the checks into bank accounts they controlled. Smith allegedly first deposited the disability payments into a bank account in his own name, and then began depositing checks into fraudulently opened bank accounts in the victim’s name by Smith and others. Shortly after depositing the disability payments, Smith allegedly withdrew the funds in cash and used them for personal expenses.
In total, Smith and his associates are alleged to have stolen more than $450,000 in VBA disability benefits intended for the victims between 2015 and approximately 2020.
“This week marks 80 years since incredibly brave members of our military stormed the beaches of Normandy to save Europe, and all Americans should be grateful to the veterans who served our country. The theft of disability benefits intended for a 20-year veteran facing a life-threatening illness, as alleged here, is outrageous. The immorality uncovered by our criminal justice system is, at times, simply staggering,” said Acting United States Attorney Joshua S. Levy.
“It is difficult to imagine crimes more despicable than the financial crimes allegedly targeted at vulnerable members of our communities, but targeting vulnerable members who have proudly served our country is truly ‘unthinkable’. The Postal Inspection Service is committed to working with our law enforcement partners to identify these criminals and bring them to justice,” said Inspector General Ketty D. Larko Ward of the Boston Office of the U.S. Postal Inspection Service.
“My office is committed to holding accountable those who allegedly stole VA benefits meant for disabled veterans,” said Special Agent in Charge Christopher Algieri of the Northeast Field Office of the Department of Veterans Affairs Office of Inspector General. “I thank the U.S. Attorney’s Office and our law enforcement partners for their outstanding work in pursuing justice in this case.”
“We will continue to pursue those who misuse Social Security numbers and other people’s personal information for their own personal gain,” said Social Security Administration Inspector General Gayle S. Ennis. “We thank our law enforcement partners for their assistance in this investigation and the U.S. Attorney’s Office for prosecuting this case and holding this individual accountable for his alleged actions.”
Theft of government benefits carries a maximum sentence of 10 years in prison, three years probation, and a fine of $250,000 or twice the gross gains or losses, whichever is greater. Conspiracy to steal government benefits carries a maximum sentence of five years in prison, three years probation, and a fine of $250,000. Sentencing will be imposed by a federal district court judge under the U.S. Sentencing Guidelines and statutes that govern sentencing in criminal cases.
Acting U.S. Attorney Levy, USPIS INC Larko Ward, VA-OIG SAC Algieri, and SSA IG Ennis made the announcement today. Deputy U.S. Attorney Benjamin A. Saltzman of the Securities Finance and Cyber Fraud Section is prosecuting the case.
The details set forth in the indictment are allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.