Two Men Plead Guilty to Defrauding Memphis VA Medical Center of $1 Million

Memphis, TN – Two men have pled guilty to conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.

According to the indictment, from August 2007 to July 2013, Andre Reddix, 59, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.

Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.

In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.

For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.

Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments amongst themselves, using the funds for personal expenses.

Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.

On Wednesday, September 30th, Reddix pled guilty to conspiracy to defraud the VA of approximately $1 million.

On Friday, September 11th, White pled guilty to conspiracy to defraud the VA of approximately $1 million.

Both pleas included $1 million criminal forfeiture provisions.

White is scheduled to be sentenced by Judge Samuel H. Mays Jr. on December 11, 2015.

Reddix is scheduled to be sentenced by Judge Samuel H. Mays Jr. on January 7, 2016.

Both defendants face individual sentences of up to five years imprisonment when sentenced. In addition to the $1 million criminal forfeiture provisions, the defendants face individual fines of up to $250,000.