Noteboom The Law Firm

Man Guilty of Defrauding VA

June 8, 2010 - Fraud is a very unfortunate reality that as of late has been seemingly targeting both the Department of Veterans Affairs (VA) and individual veterans. Fraudulent schemes have run the gamut from impersonating soldiers to filing false disability claims. Jim Bob Shipp committed the latter type of fraud.

Shipp is a 60-year-old man from Mount Pleasant, Texas and was recently found guilty of defrauding the VA. According to testimony and evidence presented in his court case, Shipp defrauded the VA for an outrageous time period. From October 25, 1974 to December 1, 2009, Shipp carried out an ongoing plot to deceive the VA's Disability Compensation Program. Over those 35 years, Shipp overstated both the degree and severity of his claimed disability.

Shipp told his doctors he suffered from "extreme" loss of vision in both eyes. Based on his claim, the VA's Disability Compensation Program granted Shipp the very highest disability rating and paid his compensation at 100%. Shipp's true disability would have only allowed him a pay rate of 30%. Over the years Shipp received $804,522.57 in disability payments.

Shipp was found guilty by a jury in the Eastern District of Texas on July 1, 2010 of 6 counts of Health Care Fraud and 1 count of Making a False Statement. Shipp's trial lasted 3 days. Shipp's sentencing date has not been scheduled but he is facing up to 5 years in a federal prison.