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New Bedford man jailed for theft of over $450k in veterans' disability benefits

Joshua S. Levy, U.S. Attorney | U.S. Attorney for the District of Massachusetts

A New Bedford resident, Joseph Smith, has been sentenced to 23 months in prison for stealing over $450,000 in disability benefits from the United States Veterans Benefits Administration (VBA). The funds were intended for a Marine Corps veteran suffering from Amyotrophic Lateral Sclerosis (ALS). In addition to the prison term, Smith will undergo two years of supervised release and must pay restitution totaling $459,550.86.

Smith was charged with theft and conspiracy to steal government benefits in June 2024 and pleaded guilty in September of the same year. The scheme involved depositing checks meant for the ALS-diagnosed veteran into accounts controlled by Smith and his associates between 2015 and 2020.

The victim's disability benefits began after an ALS diagnosis in August 2015, resulting in monthly payments of approximately $8,318. These payments were issued via checks mailed to a former residence where the victim had lived with one of Smith's relatives. During this time, as the victim remained hospitalized, Smith diverted these funds for personal use.

United States Attorney Joshua S. Levy commented on the case: “Every American owes a debt of gratitude to the men and women who have worn the uniform. Stealing from them is simply immoral and Mr. Smith will now pay a heavy price for his egregious betrayal of a veteran who sacrificed for all of us to keep our country free and safe.”

Inspector Ketty Larco-Ward emphasized that "Military veterans deserve our highest reverence and respect," condemning Smith's actions as he "egregiously stole a disabled veteran’s benefits."

Special Agent Christopher Algieri stated that this sentence sends "a clear message that individuals who steal VA benefits from disabled veterans will be held accountable."

Amy Connelly also remarked on Smith’s misuse of another individual's identity: “Mr. Smith admitted to stealing federal disability benefits... This sentence holds him accountable for his role in this deplorable conspiracy.”

The announcement was made by U.S. Attorney Levy along with representatives from various inspector offices involved in investigating this case.

Assistant U.S. Attorney Benjamin A. Saltzman prosecuted this matter within the Securities Financial & Cyber Fraud Unit.