Federal employee among 14 indicted in disability claims scam - wave3.com-Louisville News, Weather & Sports

Federal employee among 14 indicted in disability claims scam

Photo courtesy; Louisville Metro Corrections Photo courtesy; Louisville Metro Corrections
Dean Toth (Photo courtesy: U.S. Marshals Service) Dean Toth (Photo courtesy: U.S. Marshals Service)

By Maira Ansari - bio | email  
Posted by Charles Gazaway - email

LOUISVILLE, KY (WAVE) - A Veterans Administration employee and 13 others have been charged with conspiring to steal nearly $2-million in disability claims.

The indictment alleges that the ringleaders were 37-year-old Daniel Ryan Parker of Crestwood, a veteran and a supervisor at Disabled American Veterans in Louisville, 37-year-old Jeffrey Allan McGill of LaGrange, who worked at the VA regional office in Louisville and whose job was reviewing claims.

"The two individuals were asking other people to come in who were all former veterans.  They would create false documents stating there was 100% disability for eye sight, cancer, due to their military injuries and according to the grand jury these are not true," said David Huber, U.S. Attorney of the Western District of Kentucky.

11 other veterans and one civilian are also indicted. Thanks to the help of a confidential source, this fraud has finally been uncovered.

"This is a big case for two reasons. Number one - the nature of the case involving former members/veterans, and number two - you have an employee of the United States Government, so it's a public corruption charge," said Huber.

Wednesday, a federal grand jury filed charges of conspiring to defraud the United States of nearly $2-million through the submission of false disability claims to the Department of Veterans Affairs. Huber says he hopes to recover the stolen money.

One of the remaining 12, Dean Toth of Crestwood was arrested Thursday, but he was released on his own recognizance. The other have agreed to turn themselves in.

Parker's attorney says he has cooperated with investigators and will plead not guilty.

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