VAOIG Seal U.S. Department Of Veterans Affairs
Office of Inspector General
Western Field Office
P.O. Box 241516
Los Angeles, CA 90024
(310) 268-4269
Thursday, January 19, 2006
VA Fiduciaries Indicted for Fraud
Douglas J. Carver, Special Agent in Charge, VA Office of Inspector General, Western Field Office, announced today that Phyllis and Frank Talas were indicted in U.S. District Court, District of Alaska, for Conspiracy, Misappropriation of Funds by a Fiduciary, and Wire Fraud.

The investigation revealed that Phyllis and Frank Talas, fiduciaries for Donald Mitchell, allegedly misappropriated and/or diverted over $500,000 in assets from Mitchell. It is alleged that the accused sold Mr. Mitchell’s property and used the proceeds to purchase property in their name; operated a failed business funded by Mr. Mitchell’s assets; made purchases for personal gain; and failed to make payments for expenses incurred by Mr. Mitchell.

This indictment is the result of an investigation conducted by the VA OIG and the U.S. Postal Service. This matter is being prosecuted by Karen Loeffler, Assistant United States Attorney, District of Alaska, Anchorage, AL.