FRANKFORT, KY - The U.S. Attorney's Office, Eastern District of Kentucky reports that a Shelbyville, Ky., man, Jeremy Wayne Harrell, 43, was convicted on Friday, August 23, by a federal jury in Frankfort, of theft of government benefits. The jury’s verdict was returned following a five-day trial and less than two hours of deliberations.
According to testimony at trial, Harrell intentionally stole money from the United States in an amount exceeding $1,000, namely U.S. Department of Veterans Affairs Individual Unemployability (IU) disability payments that he was not entitled to receive.
Specifically, the evidence presented at trial indicated that Harrell was initially awarded IU benefits in 2011. In 2019, Harrell then founded Veterans Club, Inc., and he served as the Founder and CEO of the organization. The evidence that showed Harrell had a high level of work activity for Veterans Club, from 2019 through 2023. This included working 40-60 hours per week, actively running the organization, organizing events, managing over $400,000 in assets and approximately 6,000 volunteers, engaging in news media interviews, appearing on podcasts, appearing and speaking at community events, meeting with business and political leaders, teaching classes, accepting donations, among other work. This evidence confirmed that Harrell, as the active and successful Founder and CEO of Veterans Club, could maintain substantial gainful employment, rendering him ineligible to receive the IU benefits that he received from 2019 through 2023. Additionally, the evidence showed that Harrell made numerous false statements to the government about his daily life and work activities, depicting himself as withdrawn, without the ability to perform work, leading a highly restricted life, and rarely leaving his home; when in truth, he was an active and successful CEO of a vibrant organization. The evidence confirmed Harrell made these false representations to the government to depict himself as unemployable, conceal his active role as CEO of an organization, and attempt to continue to receive IU benefits. In total, Harrell wrongfully received more than $108,000 in IU benefits.
“In the end, this case was about a simple principle: preventing people from taking government assistance they are not entitled to receive,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “He provided false information to the government, which concealed his ineligibility, and he wrongfully obtained a significant amount funds – funds that should have been provided to other veterans who were eligible for this assistance. I commend the efforts of our law enforcement partners and trial team, whose work defended this simple principle, and resulted in a verdict reaffirming it.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and VA Inspector General Michael J. Missal, jointly announced the verdict.
The investigation was conducted by U.S. Department of Veterans Affairs Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney James T. Chapman.
Harrell will appear for sentencing on December 9, 2024. He faces a maximum of 10 years in prison and a fine of up to $250,000. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
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