Retired Funeral Director Pleads Guilty To Submitting Fraudulent Claims To The Veterans Administration

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Karen Schlager, 60, of Snyder, NY, pleaded guilty to submitting false and fraudulent claims to the Department of Veterans Affairs before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison and a $250,000 fine. 
 
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that the defendant, who was the funeral director at Schlager Funeral Home in Amherst, submitted claims to the VA seeking payment for death benefits, including transportation costs, burial services, and funeral costs, that she knew had not provided to veterans or their families. As a result of the defendant’s actions, the VA suffered a loss of approximately $13,800.
 
The plea is the culmination of an investigation on the part of Special Agents of the United States Veterans Administration, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Jeffrey G. Hughes.
 
Sentencing is scheduled for July 7, 2016 at 10:00 a.m. before Judge Vilardo.