Noteboom The Law Firm

Elderly Attorney and Wife Accused of Defrauding Veterans

July 13, 2010 - It seems to be the year to steal from the Department of Veterans Affairs (VA) and veterans. With at least two major fraud schemes already busted, exposed, and prosecuted this year, a third comes to light. Joe Phillips, 71, a Houston lawyer, and his wife Dorothy Phillips, 70, were recently indicted on:

• Conspiracy to Theft;
• Misappropriation of a Fiduciary;
• Making Materially False Statements to a Federal Agency; and
• Tax Fraud.

The elderly couple is accused of conspiring to steal $2 million from military veterans. Joe had been appointed legal guardian to several veterans who had been deemed unable to take care of their own affairs. As a legal guardian, Joe operated and maintained bank accounts for the "incompetent" veterans who were receiving VA and SSA payments to cover living expenses.

Both Joe and Dorothy, who served as Joe's legal assistant and officer manager, allegedly stole money from those accounts and transferred the funds directly into Joe's personal account. The thefts started in January of 2003 and did not end until February of 2008. To cover their theft, the Phillips' lied to the veterans and did not report tax receipts totaling hundreds of thousands of dollars. 

The Phillips are facing a maximum of 5 years in prison on each charge with the exception of the Tax Fraud charge, which carries a maximum of 3 years in prison. Additionally, they may have to pay restitution along with a $250,000 fine.