Lancaster Woman Pleads Guilty to Defrauding Two Nonprofit Veterans Organizations

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jessika L. Hiepler, 46, of Lancaster, Pennsylvania, entered a plea of guilty today before United States District Judge Jeffrey L. Schmehl to two counts of wire fraud related to her scheme to defraud two nonprofit veterans organizations, American Legion Post 34 and American Veterans Post 19. Hiepler and her associate netted $1.425 million from the fraud scheme.

The defendant was charged with these violations by criminal information on August 12.

For nearly 15 years, Hiepler served as a board member and as the manager, treasurer, and financial officer for American Legion Post 34 (“Legion Post 34”). In 2019, Hiepler offered to “bail out” a separate veterans’ organization, American Veterans Post 19 (“AMVETS Post 19”), that was facing financial difficulties.

Under the pretext of bailing out AMVETS Post 19, Hiepler assumed control over its financial affairs and acquired its valuable four-acre commercial property through theft, deceit, and misrepresentation. First, Hiepler misled AMVETS Post 19 to secure approval for the bailout, including with the false promises of an interest-free loan, minimal rent, and full transparency. Second, Hiepler stole from her then-employer, Legion Post 34, to raise funds for the bailout. Third, once in control of AMVETS Post 19’s finances, Hiepler also stole from AMVETS Post 19 and used its funds for her own benefit. Fourth, Hiepler concealed her self-dealing, manipulated and altered financial records, and destroyed financial and business records at both Legion Post 34 and AMVETS Post 19.

From the outset, the defendant schemed about making money and selling the AMVETS Post 19’s property at 715 Fairview Avenue in Lancaster, PA. In Hiepler’s own words:

• “[W]e will make our money and they [AMVETS Post 19] can kiss our a[**]”

• “I am ready to get rid of these motherf[*****]s. . . . I can’t wait for sh[**] to be ours”

• “I can’t wait to see their face when we hand them their eviction notice”

• “Honestly all I want is my money. That’s it. I could care f[***]ing less about any of them.”

Three years after acquiring the AMVETS Post 19’s property for a below-market rate of $500,000 through the “bailout,” Hiepler’s real estate investment company sold the fraudulently obtained property for $1.95 million, and booked a gain of $1.425 million after expenses.

“Jessika Hiepler’s contempt for her victims, veterans who served this country, is palpable — and despicable,” said U.S. Attorney Romero. “Not only did she defraud these organizations, she did so gleefully, hurling insults and expletives behind the scenes. My office and the FBI will never stop working to hold crooks like this accountable on behalf of fraud victims, both past and potential.”

“In weaving a web of lies and deception, this defendant pocketed over one million dollars intended for organizations dedicated to supporting our nation’s veterans,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “FBI Philadelphia and our law enforcement partners will continue to pursue criminals who prey on the public for their own personal profit.”

Hiepler faces a maximum possible sentence of 40 years in prison, three years of supervised release, and a $500,000 fine, along with restitution. As part of the plea agreement, Hiepler agreed to a forfeiture money judgment in the amount of $1,425,847.24.

The case was investigated by the FBI, with assistance from the Lancaster City Bureau of Police, and is being prosecuted by Assistant United States Attorneys Samuel S. Dalke and Andrew Jenemann.