Blind Benefits Scam: Reno Vet Billy Alumbaugh Indicted

WICHITA, KAN. — An Army vet from Reno County is facing federal charges for a $63,000 scam involving fake blindness, Grimy Times has learned.

Billy J. Alumbaugh, 61, and his ex-wife, Debra K. Alumbaugh, have been charged with conspiracy to defraud the government and theft of government funds, U.S. attorney Tom Beall disclosed today.

The indictment claims Alumbaugh fraudulently obtained a supplemental monthly pension by falsely claiming he was legally blind and required assistance for daily tasks. He alleged an inability to drive, but maintained a Kansas driver’s license without corrective lenses from 2009 to 2016, despite driving during that period.

Specialists at the Wichita VA hospital were unable to find medical reasons for Alumbaugh’s claimed blindness. In October 2016, he was spotted with his ex-wife arriving at the hospital where she drove him in and out of the car, then swapped seats for a brief drive after the appointment.

Alumbaugh and his ex-wife face up to five years in federal prison and fines totaling $500,000 if convicted. The investigation was handled by the VA Office of Inspector General, with Assistant U.S. Attorney Brent Anderson prosecuting.

In all cases, defendants are presumed innocent until proven guilty. This article contains only allegations of criminal conduct.