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KENT, Wash. - A Kent woman was sentenced to over a year in prison for defrauding more than $1 million in benefits from the Veterans Administration.
Kelly M. Lee-Carroll, 58, had a long-running scheme where she falsely claimed she was unable to walk and needed round-the-clock care, where in actuality she was traveling and purchased a second home in Las Vegas.
The backstory:
Prosecutors said the fraud took place between July 2012 and October 2024, totaling more than $1.1 million in health care and disability benefits, intended for the most disabled veterans.
Lee-Carroll recruited her sister and son as paid caregivers so the VA would pay them for the hours they claimed to care for her. However, Lee-Carroll's sister and son often claimed hours while they were clocked in at other jobs, or while she traveled for vacations.
Lee-Carroll claimed to be bedridden with paralysis in one leg and arm, and repeatedly said she needed a wheelchair to leave home. However, the investigation found Lee-Carroll did not need a wheelchair and could use both of her hands.
What they're saying:
"As a veteran, I find this type of fraud against our programs despicable," said First Assistant U.S. Attorney Neil Floyd. "These benefits to pay for care, and for caregivers, need to be carefully utilized so that they serve veterans as intended. They should not go for second homes, cars, exotic trips, or casino gambling as they did in this case. This defendant not only pays the price for her conduct, she roped in her family members who now have felony convictions."
Lee-Carroll and her family members pleaded guilty to conspiracy to commit theft of government property and health care fraud. Lee-Carroll was sentenced to 17 months in prison and ordered to pay $932,142 in restitution. Her sister received a "time served" sentence with six months of supervised release and must pay $293,787 in restitution. Her son received a 14-month sentence and was ordered to pay $282,698 in restitution.
"This sentence sends a clear message that individuals who steal VA benefits will be held accountable," said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of the Inspector General, Northwest Field Office. "The VA OIG will continue to identify and eliminate fraud by seeking prosecution of those who swindle VA benefit programs that are intended to help veterans, their families, and caregivers. We thank the U.S. Attorney’s Office for their efforts in this investigation."
Lee-Carroll served in the Army for three months in 1986 and joined the Army Reserves from 1986-1994. She claimed a service-related disability in 2012 and received caregiver funding in 2013. Prosecutors acknowledged that Lee-Carroll did qualify for some disability payments but not the more than $11,000 per month she was receiving.
This case was investigated by the Veterans Affairs Office of Inspector General.
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The Source: Information in this story came from a news release from the United States Department of Justice.