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Press Release

Lawton Man Sentenced To 5 Years For Defrauding U.S. Department Of Veteran Affairs

For Immediate Release
U.S. Attorney's Office, Western District of Michigan

          GRAND RAPIDS, MICHIGAN — Joseph Scott Gray, 53, of Lawton, Michigan was sentenced to five years in federal prison for lying to the Department of Veterans Affairs to obtain over $250,000 in benefits to which he was not entitled. To obtain those benefits, Gray repeatedly told the VA he could not walk or stand, when in fact, he could.

          On October 26, 2017, Gray went to the Battle Creek VA Medical Center for an exam, and he arrived in a wheelchair:

Joseph Scott Gray

          During the exam, Gray told VA employees he had not walked in 10 years and could not use his left hand. Minutes later, Gray went to a local restaurant, where he was observed freely walking in and out of the building and carrying his leftovers in his left hand:

Joseph Scott Gray

          Gray was convicted by a federal jury of four counts: engaging in a conspiracy to defraud the government; providing false statements to the VA; theft of government funds; and presenting a false, fictitious, or fraudulent claim for benefits. After trial, the Court found that Gray committed perjury by falsely testifying that his medication caused him lie to VA employees and that his medication caused him to go from being unable to walk one minute to able to walk the next. The Court also found that Gray falsely testified that it was his brother, not him, in videos from a local feed store in which Gray was seen walking freely and carrying a 40 - 50 lb. bag of cat food.

          In sentencing Gray to five years in prison, U.S. District Court Judge Robert J. Jonker explained that a significant sentence of incarceration was necessary because Gray’s fraud spanned 15 years and involved blatant lies to both the VA and the jury. Judge Jonker also noted Gray obstructed justice in this case by committing perjury, and he obstructed justice in a previous federal case by threatening a witness.  In 2011, Gray was sentenced to 27 months in prison after a jury convicted him of engaging in the unlicensed sale of firearms.

          U.S. Attorney Mark Totten stated, “Our nation has an obligation to care for our veterans and we must ensure they receive the medical care and disability benefits they need and deserve. Those who lie and fraudulently obtain VA benefits they are not entitled to receive not only steal from American taxpayers but from the veterans who served in defense of our country. My office will fight to protect VA benefits for those in genuine need of treatment and support.”

          “Misrepresenting symptoms to the VA to fraudulently obtain benefits takes resources from deserving veterans and will not be tolerated,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office.  “The VA OIG will continue to vigorously investigate those who would steal from VA benefits programs and taxpayers.”

          Assistant U.S. Attorneys Davin Reust and Lauren Biksacky prosecuted the case.


Updated September 16, 2022

Health Care Fraud