Source: Office of United States Attorneys
BOSTON – A New Bedford man was sentenced today for stealing over $450,000 in disability benefits issued by the United States Veterans Benefits Administration (VBA) intended for a 20-year veteran of the United States Marine Corps who was suffering from Amyotrophic Lateral Sclerosis (ALS).
Joseph Smith, 71, was sentenced by U.S. District Court Judge Julia E. Kobick to 23 months in prison, to be followed by two years of supervised release. Smith was also ordered to pay $459,550,86 in restitution. In September 2024, Smith pleaded guilty to one count of theft of government benefits and one count of conspiracy to steal government benefits. Smith was charged in June 2024.
Shortly after the victim’s ALS diagnosis in August 2015, the VBA approved the victim’s application for disability benefits and awarded him approximately $8,318 in monthly payments. The VBA began issuing payments in September 2015 via monthly checks mailed to the victim’s former residence in New Bedford, where he had resided with Smith’s relative.
Between approximately 2015 and 2020, while the victim was hospitalized for ALS, Smith and others received monthly VBA disability checks intended for the victim and deposited those checks into bank accounts they controlled. Smith first deposited the disability checks into a bank account in his own name and then began depositing the checks into a bank account that he and others fraudulently opened in the name of victim. Shortly after depositing the disability checks, Smith withdrew the funds in cash and used the money for personal expenses.
In total, between in or around 2015 and 2020, Smith and others stole more than $450,000 in VBA disability benefits intended for the victim.
“Every American owes a debt of gratitude to the men and women who have worn the uniform. Stealing from them is simply immoral and Mr. Smith will now pay a heavy price for his egregious betrayal of a veteran who sacrificed for all of us to keep our country free and safe,” said United States Attorney Joshua S. Levy. “Stealing from a Marine Corps veteran who bravely served for 20 years as he battled a devastating illness is about as low as it gets.”
“Military veterans deserve our highest reverence and respect,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “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.”
“This sentence sends a clear message that individuals who steal VA benefits from disabled veterans will be held accountable,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “VA’s programs and services are established to justly compensate deserving veterans and the VA OIG is committed to investigating those who would exploit or defraud these programs.”
“Mr. Smith admitted to stealing federal disability benefits, which he gained access to by misusing someone else’s identity, including their Social Security number. This sentence holds him accountable for his role in this deplorable conspiracy to defraud the government,” stated Amy Connelly, Special Agent in Charge, Social Security Administration Office of the Inspector General, Boston-New York Field Division. “I commend the investigators from the U.S. Postal Inspection Service and the Veterans Affairs Office of the Inspector General and prosecutors from the U.S. Attorney’s Office for their diligent efforts in working this case.”
U.S. Attorney Levy, USPIS INC Larco-Ward, VA-OIG SAC Algieri and SSA-OIG SAC Connelly made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities Financial & Cyber Fraud Unit prosecuted the case.