United States Attorney Joe Kelly announced that Michael A. Basile, 62, was sentenced on December 6, 2018, in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr., for the crime of embezzlement of Government funds. Judge Rossiter sentenced Basile to 5 years of probation, 150 hours of community service, and ordered Basile to make restitution to the Veteran’s Administration in the amount of $62,255.56 and to the Railroad Retirement Board in the amount of $108,352.32.
Basile was receiving disability payments from both the Veteran’s Administration and the Railroad Retirement Board, based upon an existing disability. However, from June of 2014 through September of 2017, Basile engaged in contract work and had payment for that work made payable to a family member in order to conceal his income. Basile failed to report that income to both the Veteran’s Administration and the Railroad Retirement Board, as was required as a condition of his receipt of the disability payments.
“Our office will continue to vigorously investigate individuals who commit fraud against the disability program of the U.S. RRB,” said Kristie Osswald, Special Agent in Charge, Office of Inspector General, U.S. Railroad Retirement Board.
Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General, said, “The Department of Veterans Affairs Office of Inspector General is committed to prosecuting those who seek to illegally enrich themselves at the expense of programs intended to help our nation’s veterans. This case should serve as a deterrent to those who would seek to defraud VA.”
This case was investigated by agents with both the Veteran’s Administration and the Railroad Retirement Board Office of Inspector General.