Criminal Investigative Updates

Victor Milbourne, of King of Prussia, Pennsylvania, was sentenced to 18 months in prison for defrauding VA out of more than $240,000. From 2013 to 2022, Milbourne knowingly defrauded the VA by claiming that he was severely disabled and unable to work due to service-connected injuries. In reality, the defendant led a very active lifestyle, including traveling internationally, running his own business, and doing intensive physical workouts multiple times a week. The VA OIG and the FBI investigated this case.

Nicholas Moore, of Springfield, Tennessee, pleaded guilty in connection with hacking restricted accounts at the Supreme Court of the United States (SCOTUS), AmeriCorps, and VA. Moore used the stolen login credentials of a US Marine Corps veteran to access the VA’s My HealtheVet platform. The hack allowed Moore to access a veteran’s private health information, including prescribed medications and other intimate data. Moore then posted the veteran’s health information to @ihackedthegovernment and boasted about gaining access to VA’s servers. This case was investigated by the VA OIG, SCOTUS Police Protective Intelligence Unit, FBI Washington Field Office, and AmeriCorps OIG.

Darla Storey, of Rankin County, Mississippi, pleaded guilty to misusing VA money intended to benefit her son, a disabled veteran. In 2016, Storey began serving as a fiduciary for her son and for five years misappropriated VA funds for her own benefit. This misappropriation included purchasing a vehicle, paying bills, and taking trips when the beneficiary was not living with her. She routinely failed to file proper accountings and used more than $100,000 entrusted to her by the VA. The VA OIG investigated this case.

Brian K. Ditch, of Salem, Missouri, was sentenced to thirteen years in prison for neglecting his uncle, a quadriplegic US Army veteran. Ditch concealed his uncle’s death and corpse to fraudulently obtain $1.8 million in his uncle’s disability benefits. Ditch became solely responsible for his uncle’s care in 2008 and kept him locked away, subjecting him to insufficient care and verbal abuse. Ditch fraudulently gained access to his uncle’s financial accounts and regularly wired money to himself. After his uncle’s death around 2019, Ditch concealed it from relatives, the VA, and the Social Security Administration (SSA) so he could continue to steal his uncle’s benefits. He hid the body in a shed behind his house. The VA OIG, the SSA OIG, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with the Salem Police Department.

Gary Cox, CEO of Power Mobility Doctor Rx, LLC, was sentenced to 15 years in prison and ordered to pay more than $452 million in restitution for conspiring to defraud Medicare and other federal health care benefit programs of more than $1 billion by operating an online platform that generated false doctors’ orders used to support fraudulent claims for various medical items. He and his co-conspirators targeted Medicare beneficiaries who provided their personally identifiable information and agreed to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. As part of the scheme, Cox connected pharmacies, durable medical equipment suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders. In June 2025, Cox was convicted of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, conspiracy to pay and receive health care kickbacks, and conspiracy to defraud the United States and make false statements in connection with health care matters. The VA OIG, Health and Human Services OIG, FBI, and  Defense Criminal Investigative Service investigated the case.