HOUSTON – A 76-year-old Houston woman has been ordered to prison following her conviction of conspiring to commit fraud against the Veterans Administration (VA) by generating purchase orders for fictitious goods and services, announced U.S. Attorney Ryan K. Patrick.

Eduora McDaniel aka Eudora McDaniel pleaded guilty Jan. 31, 2019 to conspiracy to commit wire fraud.  

At a hearing that concluded late yesterday, U.S. District Judge David Hittner handed McDaniel the maximum 60-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted further ordered McDaniel to pay $290,000 restitution and a $100,000 fine and ordered the government to garnish the maximum amount of McDaniel’s government pension until the restitution and fines are paid.

McDaniel admitted she conspired with a vendor to defraud the VA by submitting fake invoices for goods and services that never happened. As a prosthetics representative for the VA, McDaniel had the authority to obtain prosthetic goods and services if a physician found it medically necessary, which she was authorized to pay using a government-issued VISA credit card. McDaniel created fake purchase orders for her co-conspirator’s company and paid them using her government credit card. McDaniel and the co-conspirator then split the payments. 

McDaniel’s co-conspirator, Angela Hunter, pleaded guilty in August 2018 and is scheduled to be sentenced Aug. 13, 2019. 

McDaniel has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

 

HOUSTON – A 75-year-old resident of Houston has been convicted of conspiring to commit fraud, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge James Ross of the Department of Veterans Affairs Office of Inspector General (VA-OIG).

Eduora McDaniel admitted she generated purchase orders for fictitious goods and services.

“Today’s guilty plea and associated charges underscore VA-OIG’s commitment to protecting the integrity of the funds intended for veterans,” said Ross.

As a prosthetics representative for the VA, McDaniel had the authority to obtain prosthetic goods and services if a VA physician found it medically necessary. McDaniel was authorized to pay for the goods using a government-issued VISA credit card.

As part of the scheme, she created bogus purchase orders for her co-conspirator’s company and paid them using her government credit card. McDaniel and co-conspirator Angela Hunter, 54, also of Houston, then split the payments. 

Hunter previously pleaded guilty as well. McDaniel and Hunter are set for sentencing April 30 and 24, respectively.

Conspiracy to commit wire fraud carries a possible sentence of five years as well as a $250,000 maximum possible fine.

VA-OIG conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

HOUSTON – Two Houston women have been taken into custody on charges they committed fraud against the Veterans Administration (VA) by generating purchase orders for fictitious goods and services, announced U.S. Attorney Ryan K. Patrick.

Authorities arrested Eduora McDaniel aka Eudora McDaniel, 75, today, and she is expected to make her initial appearance before U.S. Magistrate Judge Nancy Johnson at 1:00 p.m. Co-defendant Angela Hunter aka Angelia Hunter, 53, is expected to appear in federal court Thursday at 2:00 p.m.

The 11-count indictment, returned June 7, 2018, alleges McDaniel was a prosthetics representative at the VA, while Hunter co-owned Divine Iron Works - a company that was an approved VA prosthetics vendor. They allegedly entered into an agreement to split VA payments for goods and services Hunter’s company never provided.

While Divine Iron Works was an approved vendor to provide prosthetic goods and services for the VA, the company was effectively defunct from January 2011 to December 2014 and provided no actual goods or services, according to the charges. The indictment alleges that as a VA prosthetics representative, McDaniel had the authority to obtain prosthetic goods and services if a Veterans Administration physician found it medically necessary, which she was authorized to pay using a government-issued VISA credit card. McDaniel allegedly created bogus purchase orders for Hunter’s company, which Hunter used to obtain payment on McDaniel’s government credit cards. McDaniel and Hunter split the payments according to the charges.  

Each is charged with conspiracy to commit wire fraud and face up to five years in prison, upon conviction. McDaniel is also charged with 10 counts of wire fraud and one count of theft of government property. Each count of wire fraud carries a possible sentence of 20 years in prison, while theft of government property could result in a maximum of 10 years imprisonment. All the charges also carry a possible fine of $250,000.

VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.A defendant is presumed innocent unless convicted through due process of law.