Federal grand jury indicts former Rochester couple for defrauding VA out of hundreds of thousands of dollars

ROCHESTER, N.Y. - U.S. Attorney Michael DiGiacomo announced today that a federal grand jury has returned an indictment charging Michael Joyce, 53, and Sarah Joyce, aka Sarah Shultis, 33, both formerly of Rochester, NY, now living in New Jersey, with theft of government funds, wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.

Assistant U.S. Attorney Nicholas M. Testani, who is handling the case, stated that according to the indictment and a previously filed complaint, in April 2016, Michael Joyce submitted claims for disability compensation to the Department of Veterans Affairs for several purported disabilities, including Post-Traumatic Stress Disorder (PTSD), Traumatic Brain Injury (TBI), and a back issue. Following multiple consultations and examinations for these various issues, Michael Joyce was awarded a 100% disability rating for reported PTSD, 30% for his reported symptoms of TBI, and 40% for his back. In February 2018, he applied for a status of permanent and total disability (PTD), which removes an individual’s obligation to continue getting re-evaluated for various disabilities and makes them eligible for other veteran benefits. In his Statement in Support of Claim, Michael Joyce asserted, “Every disability that I have either is the same but will not get better or has gotten worse.” He stated that his PTSD has not improved, that he is more housebound, and feels that he will die if he goes outside. Michael Joyce was subsequently granted a PTD status in April 2018.

In November 2017, the couple applied for Sarah Joyce, as Michael Joyce’s proposed caregiver, to receive payments through the VA Caregiver Support Program (CSP), claiming that Michael Joyce is wholly reliant on Sarah Joyce for multiple life tasks, including feeding, bathing, and dressing. Sarah Joyce was approved and received a retroactive payment of $8,345.82 and began to receive $2,890.14 per month for the care of Joyce. As of March 2024, Sarah Joyce has received over $250,000.

A review of Michael Joyce’s Army personnel file and during interviews with former members of his unit, investigators found multiple inconsistencies in his claims. Unit members described Michael Joyce as having never been deployed to a combat zone. Subsequent investigation and surveillance documented, on multiple occasions, Michael Joyce walking with no apparent difficulty or assistance, driving a motor vehicle, and performing household maintenance tasks, including climbing a ladder and snow shoveling.

The indictment is the result of an investigation by the Social Security Administration Office of Inspector General, under the direction of Special Agent-in-Charge Amy Connelly, and the Department of Veterans Affairs Office of Inspector, under the direction of Special Agent-in-Charge Christopher F. Algieri, Northeast Field Office.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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