Former VA Official Pleads Guilty in $1.4M Fraud Scheme

The former Deputy Chief of Veterans Claims in the Maryland Department of Veterans Affairs, David Clark, has pleaded guilty to extortion in connection with a scheme to fraudulently obtain more than $1.4 million in veterans benefits, according to the Department of Justice.

According to the plea agreement, Mr. Clark fraudulently obtained VA compensation for himself and at least 17 others by submitting false documents to the VA purporting to show the claimants had been diagnosed with diabetes. Some of the documents also showed the claimants had served in Vietnam when they had not. In return, the claimants paid Mr. Clark half of the lump sum payment they received from the VA.

In support of the fraudulent claims, Mr. Clark submitted fake letters from physicians, which falsely stated the claimants suffered from diabetes. Mr. Clark used information for practicing physicians, such as their names and addresses, who were unaware their information was being used, according to the report.

Mr. Clark has agreed to forfeit $1.4 million and is scheduled for sentencing on Nov. 17.

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