Joseph Smith, 71, of Massachusetts, has been sentenced to 23 months in prison and two years of supervised release for his role in a scheme that defrauded the United States Veterans Benefits Administration (VBA) out of more than $450,000 in disability benefits. Smith pleaded guilty in September 2024 to one count of theft of government benefits and one count of conspiracy to steal government benefits.
The fraudulent activity began after a 20-year veteran of the United States Marine Corps, who had been diagnosed with Amyotrophic Lateral Sclerosis (ALS), was approved for disability benefits in August 2015. The VBA awarded the veteran approximately $8,318 per month, which began in September 2015 and was mailed to the veteran’s former residence.
While the veteran was hospitalized due to ALS between 2015 and 2020, Smith and co-conspirators intercepted the veteran’s monthly checks. Initially, Smith deposited the funds into his own bank account but later opened a fraudulent account in the veteran’s name to continue the theft. Smith then withdrew the funds in cash for his personal expenses.
In total, Smith and his accomplices stole over $450,000 from the veteran’s benefits. On January 17, 2025, U.S. District Court Judge Julia E. Kobick sentenced Smith to 23 months in prison, followed by two years of supervised release. Smith was also ordered to pay full restitution amounting to $459,550.86.
“This is a serious crime against a vulnerable member of society,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service. “Smith’s actions, stealing from a disabled veteran, will not go unpunished, and we are committed to ensuring the integrity of the mail and all customers.”
