In a yearslong conspiracy involving weird and fraudulent damage claims corresponding to vacation ladder falls and horse buckings, a former Navy chief petty officer pleaded responsible to conspiring to bilk the federal government out of $2 million via a program supposed for severely injured service members, based on a Thursday Division of Justice press launch.
Christopher Toups, an ex-sailor who lives in Georgia, personally obtained $400,000 within the rip-off, which concerned greater than a half dozen folks, together with a Navy physician and a nurse.
The group focused the Traumatic Servicemembers Group Life Insurance coverage Program, a compensation program for injured troops. Toups, who seems to be a central determine within the rip-off, helped make the most of that system by making a paper path for faux accidents, based on courtroom information.
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Toups is scheduled to be sentenced in February and faces a most of 20 years in jail, three years of probation, and an order to repay the entire $2 million again to the Pentagon, based on his Thursday responsible plea.
“Fraudulently submitting claims for unearned TSGLI advantages diverts compensation from deserving service members who suffered severe and debilitating accidents whereas on energetic obligation,” mentioned Rebeccalynn Staples, an agent with the Division of Veterans Affairs‘ Workplace of Inspector Common, within the Justice Division press launch. “Worse but, this defendant actively recruited others into the scheme to feed his greed for compensation he didn’t deserve.”
Between 2012 and 2015, Toups conspired together with his then-partner Kelene McGrath, a Navy nurse, to steal cash from the federal government via faux or exaggerated damage claims, the Justice Division mentioned. On high of falsifying his personal TSGLI claims, Toups inspired different sailors to manufacture or exaggerate their claims.
These service members would then submit their claims, typically to McGrath, who would additional falsify or physician their medical information to replicate the exaggerated accidents. Navy Dr. Michael Villarroel would then certify these information, based on prosecutors.
Villarroel additionally supported the fraud by “falsely stating he interviewed the claimant,” based on the Justice Division.
By encouraging different service members to take part within the rip-off, Toups requested that they offer him a part of their compensation as a “processing payment” for folding them into the scheme. McGrath and Villarroel obtained a few of these “charges” and the group typically stored their transactions between each other below $10,000 to “evade perceived monetary reporting necessities,” based on the Justice Division.
A few of these accused of scheming with Toups’ have been additionally a part of his explosive ordnance disposal (EOD) unit in California, based on courtroom paperwork and the Justice Division press launch.
In a single 2013 case, Toups filed a fraudulent software purporting to have suffered a “catastrophic” damage from a bike accident in 2004, attaching doctored medical information, based on courtroom information.
Different claims from Toups’ co-conspirators included one other bike accident; McGrath saying she fell from a horse; and one occasion the place one other EOD chief petty officer, Richard Cote, claimed he fell from a ladder whereas eradicating Christmas lights.
In accordance with the VA’s web site, there are a number of necessities to earn advantages related to the TSGLI program, together with that the damage was incurred no later than “midnight on the day that you simply left the army.”
There are few exceptions to the kind of damage, with most restrictions tied to self-inflicted accidents or these incurred whereas participating in criminal activity, in accordance to the VA.
Altogether, the group collected virtually $2 million from the Division of Protection. Toups’ listed attorneys didn’t reply to Army.com’s request for remark in time for publication.
The Justice Division mentioned Toups’ rank on the time of his crimes — 2012 to no less than December 2015 — was chief petty officer. Toups finally retired from the Navy in 2017 at one rank decrease: petty officer first-class, based on service information offered by the Navy to Army.com. He was pushed right down to the decrease rank the identical month the Division of Justice mentioned his scheme led to 2015. It is unclear whether or not the demotion was tied to the damage declare scheme.
Since Navy rules sometimes forbid commanders from demoting chief petty officers, Toups’ punishment possible got here from exterior of his unit.
In accordance with the launched information, Toups was a Seabee — a member of the Navy’s fight development neighborhood — who labored as a development mechanic most just lately assigned to the Explosive Ordnance Disposal Expeditionary Help Unit out of Coronado, California.
He had two private awards in his information: a Navy Commendation Medal and a Navy Achievement medal, along with his Enlisted Seabee Fight Warfare Specialist insignia.
Two co-conspirators, Ronald Olmsted and Anthony Coco, additionally pleaded responsible and have already been sentenced. McGrath, who’s now going by the title Kelene Meyer, pleaded responsible to the conspiracy in 2019 and is awaiting sentencing. Villarroel was indicted, however pleaded not responsible in 2020, based on courtroom dockets.
“The theft of army well being care {dollars} straight harms service members and taxpayers,” mentioned U.S. Legal professional Randy Grossman within the DOJ press launch. “This fraud was pricey for the U.S. Navy, and now for this defendant.”
— Drew F. Lawrence could be reached at drew.lawrence@army.com. Comply with him on Twitter @df_lawrence.
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