A Tucson couple has been indicted by a federal grand jury on charges related to an alleged scheme to defraud the U.S. Department of War of millions of dollars over several years. The indictment was announced by U.S. Attorney Timothy Courchaine.
On February 11, 2026, Staff Sgt. Richard Stefon Ramroop, 35, and his spouse, Manuel George Madrid, 32, both residents of Tucson, were charged with Conspiracy to Commit Theft of Government Property, Conspiracy to Commit Wire Fraud, Wire Fraud, and Money Laundering in a 12-count indictment.
“The defendants allegedly stole millions in taxpayer dollars from the U.S. Department of War to bankroll a lavish lifestyle, diverting critical resources away from their intended purpose,” said U.S. Attorney Timothy Courchaine. “Every dollar taken through fraud is a dollar denied to the mission it was meant to support. The U.S. Attorney’s Office and our federal and local law enforcement partners will hold accountable any individual who profits illegally at the expense of the American people.”
IRS-CI Phoenix Field Office Acting Special Agent in Charge Jarom Gregory stated: “Military servicemembers hold a unique position in our society, where they are entrusted with large amounts of taxpayer dollars to ensure the defense of our nation. When a servicemember abuses their position for personal gain, it erodes trust in the tax system and harms the very citizens they have sworn an oath to protect. IRS Criminal Investigation will continue to investigate allegations of theft of taxpayer funds and government property, ensuring the integrity of our nation’s tax system.”
Special Agent Richard Kautz from AFOSI Detachment 217 added: “This indictment reflects the outcome of a coordinated effort between AFOSI and our federal counterparts. Fraud of this level is not just a financial crime, it undermines public trust, diverts resources, and threatens the integrity of our force. Every dollar lost to fraud is a dollar taken away from the security of our nation.”
According to court documents cited in the indictment, between January 2022 and December 2025 Ramroop used his role at Davis-Monthan Air Force Base’s pharmacy to purchase thousands of medical devices with government funds before stealing them for resale alongside Madrid.
The investigation found that more than $11 million was transferred into bank accounts controlled by Ramroop and Madrid through various methods such as wire transfers and ACH deposits linked to companies reselling medical test strips and devices during this period. The diverted orders cost the Department over $3 million.
The indictment further alleges that proceeds from these sales were used for luxury purchases including real estate—a million-dollar home bought in Tucson in February 2024—and vehicles such as a new Porsche Cayenne SUV valued at over $141,000 and a BMW i7 SUV costing nearly $195,400.
Law enforcement seized these vehicles during searches conducted on January 15, 2026.
If convicted on all counts listed—Conspiracy to Commit Theft carries up to five years imprisonment; each count related to Wire Fraud carries up to twenty years; Money Laundering convictions carry up ten years per count.
U.S. Attorney Courchaine praised efforts by multiple agencies involved in investigating this case including IRS–Criminal Investigations (IRS-CI), Air Force Office of Special Investigations (AFOSI), Homeland Security Task Force members such as HSI (Homeland Security Investigations), FBI (Federal Bureau of Investigation), DEA (Drug Enforcement Administration), ATF (Bureau of Alcohol Tobacco Firearms & Explosives), USMS (U.S Marshals Service), Counter Narcotics Alliance along with Marana Mesa & Tucson Police Departments.
The prosecution is being handled by the U.S Attorney’s Office for Arizona’s District based in Tucson.
An indictment represents only formal allegations; all accused individuals are presumed innocent unless proven guilty beyond reasonable doubt.
More information about ongoing cases can be found at http://www.justice.gov/usao/az/
