Darren Smith, a 60-year-old resident of Hazel Crest, Illinois, has received a five-year prison sentence for his involvement in a kickback scheme. The scheme involved paying bribes to a U.S. Department of Veterans Affairs (VA) employee in order to secure orders for medical equipment. The announcement was made by the U.S. Attorney’s Office, Northern District of Illinois.
Between 2017 and 2020, Smith collaborated with a procurement clerk in the Veterans Health Administration Prosthetics Service in Chicago, according to the department.
According to the department, Smith’s company received expensive and unnecessary orders for medical equipment from the VA. In return, the clerk received concealed kickbacks.
The U.S. Attorney’s Office revealed that VA physicians had given clear instructions to purchase medical equipment directly. However, instead of following these instructions, the clerk opted for more expensive rentals from Smith’s company.
The VA ended up spending a total of $2.7 million with Smith’s business, out of which $1.3 million was identified as fraudulent overpayments. As a result of this corrupt arrangement, the clerk received kickbacks amounting to at least $220,000, as reported by the department.
Gregory Billingsley, the Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office, emphasized the importance of sending a clear message that corrupt VA employees will face investigation and prosecution.
“These deceitful actions undermine the confidence of the public and divert funds meant for our deserving veterans,” said the spokesperson.
Andrew Lee, a procurement clerk at the VA, pleaded guilty to a wire fraud charge before his trial.
According to the U.S. Attorney’s Office, Lee received cash payments in exchange for selecting certain vendors. He was responsible for selecting vendors and making payments to them using government purchase cards.
According to the department, Lee is currently awaiting sentencing.
“Instead of paying for essential equipment and supplies for veterans, the defendants used the VA’s money to line their own pockets,” said Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, in statement.
“Our office remains committed to preserving the integrity of the VA health care system.”
