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3 veterans indicted on fraud, bribery charges

By BURTON SPEAKMAN, The Daily News, bspeakman@bgdailynews.com
Friday, November 21, 2008 11:03 AM CST

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Three area veterans were among 14 people indicted Wednesday as part of a scheme to allegedly defraud the U.S. Department of Veteran’s Affairs of nearly $1.9 million.

James Darrell Grimes, 61, 178 Howell Road, and Michael Douglas Harper, 51, 300 Twigg Lane, both of Scottsville, and Joe Davis Snooks Jr., 61, 3137 Youngs Ferry Road, Roundhill, are each charged with conspiracy to steal government property and bribery of a public official, according to a report from the U.S. Attorney’s Office in Louisville.

The scheme allegedly was made possible through the efforts of Daniel Ryan Parker, 37, of Crestwood, who was the national service office supervisor for the Disabled American Veterans service organization in Louisville, and Jeffrey Allan McGill, 37, of LaGrange, who was a veterans service representative with the VA’s regional office in Louisville, according to the report.

McGill was responsible for reviewing and rating VA disability claims and Parker’s job was to assist veterans to obtain military related disability benefits, according to the report. The two are accused of backdating claims to receive larger lump sum amounts for disability payments and then receiving payments from the recipient.

When contacted by phone, Grimes said Bowling Green attorney Brad Coffman was one of the attorneys representing him, along with other defendants. Harper declined to comment. A message left at the listed phone number for Snooks was not returned.

Grimes said he and defense attorneys had met with a prosecutor already about the charges.

“I didn’t bribe anybody,” he said. “We’re contesting the charges. I can’t say anything else until I talk to my attorney.”

Grimes submitted a claim for disability stating that he suffered from lung cancer due to Agent Orange, according to the indictment.

Grimes’ VA file also contained a letter allegedly counterfeited by Parker and McGill, along with medical records that indicated Grimes had received treatment for cancer, according to the indictment.

Grimes was paid $66,277 by the VA in retroactive disability payments and then received payments of more than $2,900 per month, according the indictment. He is alleged to have paid McGill $44,000 for the fraudulent claim.

Harper’s claim was that he suffered from depression and a degenerative spine condition, according to the indictment. His file also contained an allegedly counterfeit examination report.

Harper received $22,120 in retroactive disability payments along with monthly payments from the VA of about $1,100 per month. Harper is alleged to have paid a bribe of at least $10,000 to McGill for the fraudulent report.

The indictment alleged Snooks submitted a claim for hearing loss and tinnitus, a hearing condition. Parker and McGill are alleged to have backdated Snooks’ claim and the two men are also alleged to have altered the results of Snooks’ hearing test.

Snooks received $69,802 in retroactive disability payments and was receiving $2,500 a month in regular disability payments. Snooks is alleged to have paid $46,000 to McGill, according to the indictment.

In each case McGill shared the payment he received with Parker, according to the indictment.

Parker is charged with conspiracy to steal government property, theft of government property, federal program fraud, money laundering and conspiracy to launder money; McGill is charged with conspiracy to steal government property, theft of government property, soliciting a bribe, money laundering and conspiracy to launder money. The alleged scheme occurred between November 2003 and November 2008, according to the report.

Grimes, Harper and Snooks, if convicted, each face 20 years in prison, a fine of up to $500,000 and supervised release for three years, according to the report.

All the defendants are scheduled to be arraigned Dec. 16 in Louisville.


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