On January 17, 2025, a man from Massachusetts received his sentence for participating in a scheme that defrauded the United States Veterans Benefits Administration (VBA) of thousands of dollars in disability benefits. These benefits were originally meant for a 20-year veteran of the United States Marine Corps who was battling Amyotrophic Lateral Sclerosis (ALS).
According to the Office of Inspector General, Joseph Smith, 71, admitted to stealing government benefits and conspiring to do so. He pleaded guilty to one count of theft of government benefits and one count of conspiracy in September 2024, after initially being charged in June 2024.
The fraudulent activity started soon after the veteran received a diagnosis of ALS in August 2015. The VBA approved his disability benefits application, granting him a monthly payment of around $8,318. These payments began in September 2015 and were sent to the veteran’s previous address, where he had previously resided with a relative of Smith.
Between 2015 and 2020, while the veteran was hospitalized due to ALS, Smith and others engaged in illegal activities by intercepting the monthly disability checks and depositing them into bank accounts that were under their control. In the beginning, Smith deposited the funds into his own bank account, but later on, he opened another fraudulent account in the victim’s name to carry on with the theft. Subsequently, Smith withdrew the funds in cash and utilized the money for personal expenses.
Smith and his co-conspirators embezzled more than $450,000 that was meant to assist disabled veterans. On January 17, 2025, U.S. District Court Judge Julia E. Kobick sentenced him to 23 months in prison, followed by two years of supervised release. In addition, Smith was required to pay $459,550.86 in restitution.
” Military veterans deserve our highest reverence and respect,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service. ” Joseph Smith egregiously stole a disabled veteran’s benefits to enrich himself. Smith was sentenced today for his appalling crime. The U.S. Postal Inspection Service is committed to protecting the integrity of the mail stream and all customers who use it.”