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$1M VA Heist Unravels, Two Men Sentenced
Memphis, TN – Two men have been taken down for swindling the Memphis VA Medical Center out of $1 million in a brazen scheme that spanned nearly six years.
According to the indictment, Andre Reddix, 60, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA between August 2007 and July 2013.
Reddix, a former VA employee, used a company-issued credit card to purchase medical supplies for the VA. However, he concocted a scheme with White, who established a medical supply company called White Pharmaceuticals, to embezzle funds.
For nearly six years, Reddix created fake purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. White then sent the VA fake invoices corresponding to these orders.
Reddix used the credit card to pay White Pharmaceuticals for the undelivered supplies, and the duo split the payments, using the funds for personal expenses. A staggering 300 fraudulent transactions were made during the scheme, netting the duo over $1 million in ill-gotten gains.
In September 2015, Reddix and White both pleaded guilty to conspiracy to defraud the VA of approximately $1 million. White was sentenced to 30 months in prison and ordered to pay $1,137,694.14 in restitution. Reddix received the same sentence and restitution order.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, and prosecuted by the U.S. Attorney’s Office. The Memphis VA Medical Center provides healthcare services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.
Key Facts
- State: Tennessee
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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