Gillian A. Gallardo, Housing Allowance Payment Scam, Guam, 2023

ANDERSEN AIR FORCE BASE, GUAM – Gillian A. Gallardo, 29, an active duty Staff Sergeant with the U.S. Air Force, is facing federal charges for a brazen scheme to defraud the Defense Finance and Accounting Service (DFAS) out of over $50,000 in Overseas Housing Allowance (OHA) payments. A federal grand jury indicted Gallardo on February 4, 2015, alleging a pattern of falsified documentation and outright lies to illegally pocket taxpayer money.

According to the indictment, the scam began on November 27, 2012, when Gallardo submitted falsified OHA documentation claiming she paid $2,450 a month in rent for a residence in Yigo. The truth? Gallardo was living rent-free in Dededo while collecting full OHA benefits. The OHA is designed to help military personnel cover housing costs, but Gallardo allegedly treated it like a personal slush fund. She could have faced up to 10 years in prison and a $250,000 fine for each count of theft of government money.

Between October 1, 2012, and April 30, 2013, Gallardo allegedly received approximately $21,501.90 in fraudulent OHA and utility reimbursements, backed up by a completely fabricated lease agreement. But the deception didn’t stop there. The indictment details a second scheme, starting May 1, 2013, where Gallardo colluded with another Air Force Staff Sergeant to submit even more false OHA claims. They falsely reported a $4,400 monthly rent for a Dededo residence, while secretly paying a reduced amount to their landlord and pocketing the difference.

This second fraudulent arrangement netted Gallardo an additional $29,231.20 in tax-free reimbursements through March 31, 2014, again supported by a forged lease. In total, the government alleges Gallardo fraudulently received $50,733.10. She’s been charged with two counts of theft of government money (18 U.S.C. § 641), two counts of fraudulent claim against the United States (18 U.S.C. § 287), and two counts of false statement to a federal government agency (18 U.S.C. § 1001). Each fraudulent claim and false statement charge carries a maximum sentence of 5 years in prison and a $250,000 fine.

The Air Force Office of Special Investigations spearheaded the investigation, which uncovered the intricate web of lies. Special Assistant U.S. Attorney Kurt Grunawalt is prosecuting the case. A summons has been issued for Gallardo to appear in federal court on February 18, 2015, for arraignment. This isn’t just about money; it’s a betrayal of trust and a slap in the face to those who legitimately rely on these benefits.

It’s crucial to remember that these are allegations at this stage. Gallardo is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. However, the evidence presented by the prosecution paints a damning picture of calculated deception, and the Department of Justice appears determined to hold her accountable for allegedly exploiting the system designed to support those serving our country.

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