BOSTON — A New Bedford man has been charged with stealing more than $450,000 in disability pension funds meant for a 20-year Marine Corps veteran with amyotrophic lateral sclerosis, also known as Lou Gehrig’s disease.
According to a press release from the U.S. Attorney’s Office, Joseph Smith, 71, was indicted on one count of theft of government benefits and one count of conspiracy to commit theft of government benefits.
Smith is currently being held on unrelated charges and is scheduled to appear in federal court in Boston on June 11 at 12:30 p.m.
Monthly payment of $8,318 approved
According to the complaint, the VA approved the victim’s application for disability benefits in August 2015, shortly after he was diagnosed with ALS.
The VBA ordered him to pay approximately $8,318 per month.
Starting 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 around 2020, while the victim was hospitalized for ALS, Smith and others allegedly received monthly VBA disability benefits from the victim and deposited the payments into a bank account they controlled.
Smith allegedly first deposited the disability benefits into a bank account in his own name, then began depositing the checks into bank accounts that he and others had fraudulently opened in the victims’ names.
Smith allegedly withdrew the funds in cash shortly after depositing his disability benefits and used them for personal expenses.
He allegedly stole more than $450,000 over a five-year period.
According to the release, Smith and his associates are suspected of stealing more than $450,000 in VBA disability benefits intended for the victims between 2015 and 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 our 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.
Accusations described as “despicable” and “unimaginable”
“It is difficult to imagine crimes more despicable than the financial crimes allegedly targeted at vulnerable members of our communities, but targeting vulnerable individuals who have proudly served their 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 Ketty D. Larko Ward, Inspector General of the Boston Field 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.”
The defendants could face up to 15 years in prison.
The maximum sentence for theft of government benefits is 10 years in prison, three years probation, and a fine of $250,000 or twice the gross gains or losses, whichever is greater.
The charge of conspiracy to embezzle government benefits carries a maximum penalty of five years in prison, three years probation and a $250,000 fine.
Penalties are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutes, which govern the determination of penalties in criminal cases.
Assistant U.S. Attorney Benjamin A. Saltzman of the Securities and 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.