Nonprofit founder sentence to prison for defrauding veterans
By David Beasley
The Center Square
An Ohio judge has sentenced a man to four years in prison for a scheme to steal $20 million from the U.S. Department of Veterans Affairs.
According to Cuyahoga County prosecutors, Richard Rompala, 65, formed a non-profit organization, Senior Veterans Administration Services, to veterans and tell them they were eligible for higher federal benefits, even though they weren’t.
SVAS would suggest the veterans designate a trusted friend or family member as a “caregiver” to offset their income so they could qualify for larger VA benefits, according to Rompala’s indictment issued last year.
“If there was no trusted friend or family member then a member or associate of (SVS) would serve as the ‘caregiver,’” the indictment states. “The offsetting of the beneficiary’s income with the ‘expenses’ associated with the Caregiver Agreement would make them eligible for the additional unwarranted VA benefits.”
SVAS would keep a "significant amount” of the extra benefits as alleged administrative expenses and fees, the indictment said.
SVAS used its share of the money for staff salaries, supplies and for personal expenses “including but not limited to personal travel and paying off credit cards,” according to the indictment.
The stolen funds were federal dollars and the scheme was uncovered as part of a federal investigation with assistance from state, Lexi Bauer, spokeswoman for the Cuyahoga County prosecutor, told The Center Square.
“Ninety-five percent of the stolen funds went to veterans who relied upon (mis)representations of Rompala,” Bauer said. “It will be up to the VA whether the agency attempts to regain this money.”
Rompala personally made $670,000 from the scheme and has been ordered to pay it back,. the spokeswoman said.
“He is presently not collectible and could not pay restitution up front in mitigation of his offenses,” Bauer said.
Rompala pleaded guilty last month to several charges including money laundering, theft and tampering with records.
He faced a sentence of two to five years in prison and was sentenced to serve four years.
“Rompala’s scheme preyed on veterans who were simply seeking help,” Cuyahoga County prosecutor Michael C. O’Malley said in a statement. “Today’s sentence delivers justice and sends a clear message that fraud targeting veterans will not be tolerated.”