Guard Recruiter Admits to $30K Fraud Scheme

NEW ORLEANS, LA – A Louisiana Army National Guard recruiter traded potential soldiers’ identities for cold, hard cash, admitting guilt Friday in a scheme to defraud the government of approximately $30,000. PABLO E. PAZ, 45, of New Orleans, pled guilty to one count of conspiracy to commit theft of government funds, according to U.S. Attorney Kenneth A. Polite.

The scheme, laid bare in court documents, saw Paz, acting as a recruiter, systematically harvesting Personally Identifiable Information (PII) – names, dates of birth, and Social Security numbers – from individuals interested in joining the Louisiana Army National Guard. This wasn’t about service; it was about exploitation. Paz didn’t seek consent, he just took the data.

Paz then allegedly handed over this sensitive PII to his co-defendant, RAMON MADRID, facilitating the illicit collection of Guard Recruiter Assistance Program (G-RAP) incentive payments. These payments weren’t earned; they were built on stolen identities and a calculated betrayal of trust. Madrid pocketed roughly $30,000, and a cut went to Paz.

The U.S. Attorney’s office isn’t detailing exactly how Madrid used the stolen information to claim the fraudulent incentives, but the implication is clear: the PII was used to create phantom recruits or inflate existing ones, triggering undeserved payments. It’s a stark reminder that even those entrusted with defending our nation can fall prey to greed.

PABLO E. PAZ now faces a maximum sentence of five years in federal prison, a fine of up to $250,000, and three years of supervised release. U.S. District Judge Jay C. Zainey has scheduled sentencing for June 2, 2015. Don’t expect a parade.

The investigation, a joint effort by the United States Army Criminal Investigation Division Command and the Defense Criminal Investigative Service, underscores the ongoing fight against internal corruption within the military. Public Integrity Unit Chief Tracey N. Knight is leading the prosecution, signaling a determined effort to hold those who abuse their positions accountable. This case serves as a chilling example of how easily trust can be violated and government funds diverted for personal gain.