Veteran Affairs Employee and Vendor Charged with Fraud
BOSTON – An employee of the Department of Veteran Affairs Medical Facility in West Roxbury, Mass., and a vendor to that facility were charged today in connection with a scheme to profit from equipment that was ordered by the facility but never delivered.
James Muldoon, 47, of Pembroke, Mass., was indicted on three counts of wire fraud, and Phillip Wentworth, 59, of Middleborough, Mass., was charged by an Information with one count of wire fraud.
The charging documents allege that from Oct. 31, 2012, through Oct. 7, 2014, Muldoon, in his position in the Clinical Engineering Department of the Veteran Affairs Medical Facility (VA), and Wentworth engaged in a scheme to defraud the VA by creating false purchase orders and invoices for equipment that was never delivered to the facility. Muldoon, who was responsible for the maintenance and information technology support of various medical equipment used to treat the veterans served at the facility, created the false purchase orders. He then sent them to Wentworth who, under the name of his business M3S Computer Services, submitted invoices corresponding to the purchase orders even though no equipment was provided to the VA. Muldoon paid the invoices on behalf of the VA using his government-issued credit card, and Wentworth and Muldoon then divided between them the proceeds of their scheme. It is alleged that, on 82 occasions, Muldoon paid Wentworth and his company a total of $222,242 using his government-issued credit card.
The charging statute provides for each count a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.