Man charged with fraud in receipt of $978K in veteran disability benefits
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ASHEVILLE, NC (WLOS) — A Buncombe County man is facing multiple federal charges for defrauding the U.S. Department of Veterans Affairs (VA) in receiving close to $1 million on fraudulent service-connected disabilities.
The man, John Paul Cook, 57, of Alexander, is facing up to 40 years in prison, up to $1.75 million fine and a money judgment in the amount of $978,138.
U.S. Attorney Andrew Murray, with Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), announced Wednesday, Dec. 2, that the federal criminal indictment charges Cook with:
1 count of stealing from the VA, which carries a maximum penalty of 10 years in prison and a $250,000 fine
3 counts of making false statements in connection with obtaining VA disability payments, which carry a maximum penalty of five years in prison and a $250,000 fine, per count
3 counts of a making false claims for travel benefits from the VA, which carry a maximum penalty of five years in prison and a $250,000 fine, per count
The indictment also contains a Notice of Forfeiture seeking a money judgement in the amount of $978,138 — the amount constituting the proceeds of Cook’s alleged fraudulent conduct.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Timeline:
According to allegations contained in the federal indictment, Cook enlisted in the United States Army in November 1985, and that six months later Cook sustained an accidental injury while on duty.
Following that incident, Cook complained that as a result of the accident and injuries he sustained, a preexisting eye condition had worsened. In 1987, following a medical evaluation, Cook was discharged, placed on the retired list, and began receiving VA disability-based compensation at a rate of 60%.
The next 30 years was where Cook’s repeated false claims of increased visual impairment and unemployment due to said impairment continued to increase his disability-based compensation.
BUNCOMBE COUNTY MAN CHARGED WITH INDECENT LIBERTIES, EXPLOITATION OF MINOR
The indictment alleges that, in 2005, based on Cook’s claims of severe visual impairment, he was declared legally blind and began receiving disability-based compensation at a maximum rate.
He also began receiving additional benefits from that point, including Special Monthly Compensation (an extra monetary allowance paid to a qualifying veteran due to the severity of his disability), Specially Adapted Housing (a grant that goes toward paying for adaptations in a new home), and Special Housing Adaptation (a grant that goes toward remodeling an existing home).
Cook’s monthly VA disability payments in 1987 were $1,411 per month, according to allegations in the indictment.
With the increases in his disability rating, as well as cost-of-living adjustments and his Special Monthly Compensation, these payments steadily increased over the years.
By 2016, the monthly payment had risen to $3,990 per month.
In total, from 1987 through 2017, Cook received approximately $978,138 in VA disability payments due to his claimed blindness, to which he was not lawfully entitled.
The VA terminated Cook’s blindness-related disability payments in October 2017.
Indictment alleges healthy eyesight
The indictment alleges that, contrary to Cook’s filed claims with the VA for additional disability claims and his complaints of increased visual impairment, Cook repeatedly passed vision screening tests to renew or obtain a driver’s license in North and South Carolina.
The indictment further alleges that, during the relevant time period, Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips, to perform errands, and to drive to medical appointments.
As alleged in the indictment, from 2010 to 2016, during a time period that Cook was receiving maximum VA disability benefits for his visual impairment, Cook was actively involved with the Boy Scouts of America (BSA), including serving as a Den Leader and a Cubmaster. Among the courses the defendant completed with the BSA were courses qualifying him to be a range officer for BB guns and for archery.
He was also certified for land navigation, which involves reading maps and using a compass.
The indictment alleges that, in addition to the fraudulently obtained disability benefits for visual impairment, Cook also defrauded the VA’s Beneficiary Travel Program, after filing multiple false claims for mileage reimbursement in connection with his medical appointments.
Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
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