WASHINGTON – On Dec. 4, the last of 12 people convicted in a massive fraud against the Department of Veterans Affairs (VA) was sentenced in federal court in Atlanta.

Sarah Prater, a former supervisor and claims examiner in VA’s Atlanta regional office, was sentenced to 13 years in prison and ordered to pay more than $11 million in restitution for her part in a scheme to pay benefits in the name of deceased veterans.

“We can take some comfort in the fact that no veteran was deprived of his or her rightful benefits as a result of this fraud,” said Secretary of Veterans Affairs Anthony J. Principi.

“This case also highlights the work of the men and women of VA’s Office of the Inspector General – vital work that is often done without public recognition,” Principi added. “The IG uncovered the fraud, led a multi-agency investigation, and helped bring a complex prosecution to a successful close.”

The work by VA’s Office of the Inspector General (OIG) earned a special “Award for Excellence” in October from the President’s Council on Integrity and Efficiency.

“This was truly an OIG team effort and I am very proud to be associated with such dedicated, hardworking professionals,” said Inspector General Richard J. Griffin.

The scheme focused on creating fraudulent claims for 100-percent disability that resulted in retroactive lump-sum payments to deceased veterans.  That money, totaling about $11 million over eight years, was diverted to Prater’s accomplices.

When criminal charges were revealed in August 2001, Principi immediately undertook a number of corrective actions, including procedural and technology-based controls that prevent or quickly identify similar frauds and stronger accountability for VA managers. 

# # #

###

Reporters and media outlets with questions or comments should contact the Office of Media Relations at vapublicaffairs@va.gov

Veterans with questions about their health care and benefits (including GI Bill). Questions, updates and documents can be submitted online.

Contact us online through Ask VA

Veterans can also use our chatbot to get information about VA benefits and services. The chatbot won’t connect you with a person, but it can show you where to go on VA.gov to find answers to some common questions.

Learn about our chatbot and ask a question

Subscribe today to receive these news releases in your inbox.

More from the Press Room