Slidell, LA — A former top-ranking soldier in the Louisiana Army National Guard is facing federal charges after allegedly pocketing tens of thousands in military housing and separation pay under false pretenses. Randy M. Kiley, Sr., 63, was indicted Thursday, November 10th, on counts of wire fraud and making false statements to the United States Department of Defense.
According to the indictment unsealed this week, Kiley orchestrated a nearly decade-long scheme to boost his military pay by lying about his marital status. Despite divorcing his spouse in July 2005, Kiley failed to report the change — a legal requirement — and instead continued claiming benefits reserved for married service members. From July 2005 through July 2014, he submitted at least four official forms falsely declaring he was still married or never divorced.
Those fraudulent submissions directly led to Kiley receiving increased Basic Allowance for Housing and Family Separation Allowance — payments he was not entitled to once his marriage legally ended. The Department of Defense funds these allowances to offset living costs for military personnel with dependents; Kiley, by concealing his divorce, unlawfully inflated his compensation for nine years.
Each submission included sworn statements and supporting documents Kiley knew were false, investigators say. The indictment details how the former Sergeant Major repeatedly signed off on paperwork certifying his eligibility, fully aware that his marital status had changed. By exploiting loopholes in administrative oversight, he allegedly siphoned off taxpayer money meant for active military families.
Kiley now faces a maximum penalty of twenty years in federal prison, a $250,000 fine, and up to five years of supervised release if convicted. U.S. Attorney Kenneth A. Polite emphasized that the indictment is not a finding of guilt, stating, “The guilt of the defendant must be proven beyond a reasonable doubt.”
The case was investigated by the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. Assistant U.S. Attorney Marquest J. Meeks is leading the prosecution. The fall of a high-ranking Guardsman like Kiley underscores growing scrutiny over abuse of military entitlement programs — and the long reach of federal fraud investigators.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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