**FEDS TAKE DOWN SUBURBAN CHICAGO BUSINESSMAN IN VA MEDICAL EQUIPMENT SCAM**
CHICAGO – In a stunning blow to the integrity of the U.S. Department of Veterans Affairs, a Bolingbrook businessman was convicted of orchestrating a brazen procurement fraud scheme that netted his company over $1.3 million in undeserved claims.
Darren A. Smith, 59, of Hazel Crest, Ill., was found guilty of eight counts of wire fraud by a jury in U.S. District Court in Chicago on Monday, following a week-long trial.
According to evidence presented during the trial, Smith, the owner of a medical distribution company, conspired with a procurement clerk in the Veterans Health Administration Prosthetics Service in Chicago to fleece the VA of millions by inflating orders for medical equipment. The scheme, which spanned from 2017 to 2020, involved unnecessary and more expensive rentals of equipment from Smith’s company, rather than purchasing outright as instructed by VA physicians.
As a result of Smith’s scheme, the VA spent over $2.7 million at his company, with the businessman pocketing kickbacks from the clerk totaling at least $220,000.
The VA procurement clerk, Andrew Lee, 68, of Chicago, pleaded guilty to a wire fraud charge prior to trial and is awaiting sentencing. Smith faces up to 20 years in federal prison for each of the eight counts, with U.S. District Judge Edmond E. Chang setting sentencing for Sept. 10, 2024.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office. The government is represented by Assistant U.S. Attorney Heidi Manschreck and Special Assistant U.S. Attorney Benjamin Christenson.
The case serves as a stark reminder of the urgent need for reforms within the VA to prevent similar schemes from occurring in the future.
Related Federal Cases
- Tax Scammer Tanya Nichols Convicted in Illinois · Illinois
- ATF Warns of Legal Policies: Linking to DOJ Sites at Your Own Risk · Illinois
- James Leads Coalition Against Extremist SAVE America Act · New Mexico
- James Leads Push for Senate KOSA Bill Over House Version · New Mexico
- James Blocks $10B Cut to Childcare & Support Programs · Minnesota
Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: White Collar Crime|Public Corruption|Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
