When Shirley German couldn't get her son's guardian — an attorney handpicked by the Department of Veterans Affairs — to fork over $250 for Thanksgiving dinner for the disabled U.S. Marine and his family, she sensed something askew.Her son, after all, had more than $200,000 in veteran's benefits saved in accounts the guardian controlled.
That man, Joe B. Phillips, a 71-year-old Houston lawyer and former VA employee, now stands accused of stealing more than $2 million from at least 28 Texas veterans and hiding those thefts with faked bank statements, padded expenses and even imaginary accounts verified with forged signatures, according to dozens of civil suits and a 2010 federal court indictment.
His 70-year-old wife and legal assistant, Dorothy Phillips, faces identical charges.
The fraud appears to be the largest ever detected in the VA's enormous guardianship program.
Individual disabled vets lost anywhere from a few thousand dollars to more than $250,000.
"My son paid a price and the rest of the disabled veterans did, too — and I'm furious they have to go through something like this," German said.
Collectively, the VA's guardianship program manages cumulative estates exceeding $3 billion and oversees benefit payments for about 108,000 veterans and other beneficiaries — such as widows and children — who, because of "injury, disease, or the infirmities of age" cannot manage their own financial affairs, according to recent congressional testimony.
Only three cases of fraud exceeding $1 million have been detected in the program's history: in California, Texas and Minnesota, according to information VA officials provided to Congress in April. They refused to provide details for this story.
In answers to lawsuits, Phillips has argued that the VA — and U.S. taxpayers — should pick up the tab for the debacle since under various laws federal officials are required to audit, review and approve all bills submitted by VA-approved guardians.
The theft went undetected for years despite required reviews by VA officials and audits by Harris County probate courts, which oversaw many of the guardianship cases.
Phillips has generally denied he committed theft or fraud. His trial on federal charges is set for April.
Full Article and Source:
Violated Trust: Exposing a Texas Scam
8 comments:
The veterans who fought for this country are not protected any better than other vulnerable citizens. It's all about getting their money from them!
"The theft went undetected for years despite required reviews by VA officials and audits by Harris County probate courts, which oversaw many of the guardianship cases."
The implications of this observation are obvious.
First, the reviews by VA officials and audits by Harris County probate courts were negligent and/or fraudulent.
Second, the laws which are needed to reliably prevent such negligence and/or fraud either don't exist or are inadequate.
I think many of us appreciate that the latter seems to be the rule across the land.
More of us need to write, publish, and advocate laws which will reliably prevent such negligence and/or fraud.
These laws need to govern not only the reviews but also the courts which judge complaints concerning violations of the laws which govern reviews ...
Can we succeed with our political system as dysfunctional as it is? With issues like these universally ignored by candidates during political campaigns, including those concluded earlier this month?
Veterans become vulnerable just like the elderly and the disabled.
Vulnerable people are easy prey.
See NASGA's Veterans Beware page of the website.
I hope the bright lights stay on this story.
Yeah, this is what we really think of our Vets. We love them when they're fighting and defending the country, but we forget them when they need us.
Very shameful.
This is a big and ugly story. I hope heads will roll.
I hope these Veterans join NASGA. I would imagine there are many more Vets suffering guardianship abuse, but it's not public knowledge.
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