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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Tennessee

FOR IMMEDIATE RELEASE
Monday, January 25, 2016

Two Men Sentenced for Defrauding Memphis VA Medical Center of $1 Million

Memphis, TN – Two men have been sentenced to prison for 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 sentencings today.

According to the indictment, from August 2007 to July 2013, Andre Reddix, 60, 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 among 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.

In September 2015, Reddix and White both pled guilty to conspiracy to defraud the VA of approximately $1 million.

On December 11, 2015, White was sentenced by U.S. District Judge Samuel H. Mays Jr. to serve 30 months imprisonment. He was also ordered to pay $1,137,694.14 in restitution.

On January 21, 2016, Reddix was sentenced by Judge Mays to serve 30 months. Reddix was also ordered to pay $1,137,694.14 in restitution.

This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General.

This case was prosecuted by the U.S. Attorney’s Office.

Updated January 25, 2016