Defendant conspired to fake her own death to avoid federal fraud sentence found hiding in her own closet

CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Julie M. Wheeler entered a guilty plea to the federal felony offense of conspiracy to obstruct justice.  Wheeler, 44, of Beaver, faces up to five years of incarceration, a $250,000 fine, and three years of supervised release when she is sentenced on January 6, 2021. 

“Egregious. Wheeler risked the lives of first responders and wasted the critical resources of law enforcement and taxpayers in an attempt to evade her sentence in a federal fraud case only to be found safely hiding in a closet at her home,” said United States Attorney Mike Stuart.  “The only thing she gained was a subsequent federal conviction, up to an additional 5 years behind bars and a fine of up to $250,000.”

In a case that garnered national attention, Julie Wheeler admitted to conspiring with her husband, Rodney Wheeler, to fake her own death at the New River Gorge.  To fake her death, her husband and another family member placed a 911 call on May 31, 2020, claiming Julie Wheeler had fallen from the Grandview Overlook in the New River Gorge in West Virginia.  The overlook is a steep cliff with a series of ledges leading down to the New River.  This 911 call prompted a massive search and rescue operation with hundreds of people looking for Wheeler at the base of the overlook and the surrounding area.  False statements were given to state and federal investigators by Julie Wheelers’ family as part of the conspiracy, including statements to National Park Service officers and the United States Probation Office.  The purpose of these statements was to continue Wheeler’s ruse that she had fallen and was missing.  Julie Wheeler was actually hiding in her own home.

After two days of searching, the West Virginia State Police located Julie Wheeler in her home hiding in the closet.  Once removed from her closet, she was taken into custody.  In statements to state and federal investigators, Wheeler admitted she faked her disappearance to avoid her pending federal sentencing in a health care fraud case. Julie Wheeler was sentenced on June 30, 2020, to 42 months in prison and three years of supervised release for health care fraud relating to her overbilling a VA program for spina bifida care.  She was also ordered to pay restitution in the amount of $289,055.07 for the overbilling scheme.

The National Park Service and the West Virginia State Police conducted the criminal investigation, assisted by the Raleigh County Prosecuting Attorney’s Office. The United States Probation Office in the Southern District of West Virginia also conducted an independent investigation of Julie Wheeler’s disappearance and conduct related to the obstruction.  The Federal Bureau of Investigation (FBI) and the Veterans Affairs - Office of Inspector General (VA-OIG), the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG) conducted the investigation of the underlying health care fraud. 

Co-defendant Rodney Wheeler’s case is set for trial on November 17, 2020 and he is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The Wheelers are both presently charged with numerous felony and misdemeanor offenses in Raleigh County Circuit and Magistrate Courts relating to the false reporting of an emergency. 

Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.  Assistant United States Attorney Erik S. Goes is handling the prosecution.

 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00145.

 

 

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CHARLESTON, W.Va. – A federal grand jury has returned an indictment charging Julie Wheeler, 44, and her husband Rodney Wheeler, 48, both of Beaver, with conspiracy to obstruct justice, according to United States Attorney Mike Stuart. 

The indictment alleges that while awaiting sentencing for a federal health care fraud conviction, Julie Wheeler conspired with her husband Rodney Wheeler and others known to the Grand Jury to obstruct justice by falsely reporting her fall from Grandview Park overlook, part of the New River Gorge National River.  According to the indictment, on or about May 31, 2020, Rodney and a known person falsely reported her fall to the National Park Service, prompting an emergency 911 call. A massive search and rescue operation ensued. Rescue personnel found a shoe and cell phone that belonged to Julie Wheeler at the base of the overlook.  To further the conspiracy, the indictment alleges that Rodney Wheeler and a known person also gave false statements to federal, state and local law enforcement officials concerning Julie Wheeler’s disappearance. According to the indictment, Rodney Wheeler addressed the incident on his Facebook page on or about June 1, 2020, expressing “hope that she will be found,” to further mislead the public and law enforcement authorities into believing Julie Wheeler had fallen and remained missing. On June 2, 2020, members of the West Virginia State Police executed a state search warrant at the Wheelers’ home and found Julie Wheeler hiding in her closet. 

“Lies and deception. The indictment alleges that Julie Wheeler knowingly conspired with her husband, Rodney, to falsely report her fall from the New River Gorge National River,” said United States Attorney Mike Stuart. “Wheeler was already convicted of federal health care fraud for a most heinous crime of fraudulently obtaining nearly $300,000 from the VA’s spina bifida fund. Instead of accepting responsibility and being accountable for her horrendous conduct, she and her husband concocted a really bad scheme and, in the process, risked the lives of first responders and the critical resources of taxpayers. It is unconscionable conduct by any measure.  I want to commend Law Enforcement Specialist Stan Wilson with the National Park Service and Trooper First Class C. A. Dunn of the West Virginia State Police for their excellent work in this case.”

After being found, Julie Wheeler was sentenced on June 30, 2020, to 42 months in prison and three years of supervised release for health care fraud.  She was further ordered to pay restitution in the amount of $289,055.07. She pled guilty to the health care fraud charge on February 11, 2020, and admitted submitting fraudulent applications to the VA Spina Bifida Health Care Benefits Program where she overbilled for providing spina bifida care for a family member, K.L., in the amount of $289,055.07.

The Wheelers are charged for numerous felony and misdemeanor offenses in state court relating to the false reporting of an emergency. Raleigh County Prosecuting Attorney Kristen Keller has provided invaluable assistance throughout the federal investigation. 

The National Park Service and the West Virginia State Police conducted the investigation.  The Federal Bureau of Investigation (FBI) and the Veterans Affairs - Office of Inspector General (VA-OIG), the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG) conducted the investigation of the underlying fraud. Assistant United States Attorney Erik S. Goes is handling the prosecution.

Please note: An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00145-1 (obstruction) and 2:19-cr-00135 (health care fraud).

 

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CHARLESTON, W.Va. – Julie M. Wheeler, 43, of Beckley, was sentenced by Senior United States District Judge John T. Copenhaver, Jr. to 42 months in federal prison for federal health care fraud, announced United States Attorney Mike Stuart.  After serving her prison sentence, she will be placed on supervised release for three years.  She was further ordered to pay restitution in the amount of $289,055.07, an amount calculated by the Veterans Administration (VA) and approved by the court.

In imposing a sentencing enhancement for obstruction, Judge Copenhaver found that Wheeler attempted to obstruct and impede the administration of justice by staging an “elaborate hoax” to fake her own death to avoid federal sentencing.  On May 31, 2020, Wheeler and other family members staged her fall from the Grandview State Park overlook.  Wheeler’s family members then falsely reported to law enforcement her fall off of Grandview Ledges at the New River Gorge.  This report led to an extensive search effort in the New River Gorge by state, federal and local authorities, assisted by numerous volunteers. The West Virginia State Police eventually located Wheeler at her own home, hiding in a closet. Wheeler and her husband are presently charged in Raleigh County Magistrate Court for numerous felony and misdemeanor offenses relating to the false reporting of an emergency. The court found that this scheme contributed to Wheeler’s failure to accept responsibility for her criminal conduct and enhanced her federal sentence accordingly.

“Absolutely despicable. Wheeler’s egregious fraud scheme denied much needed spina bifida care for her own sister while she fleeced the Veteran’s Administration of almost $300,000,” said United States Attorney Mike Stuart. “Then she faked her own disappearance to evade sentencing, risking the lives and resources of first responders and emergency personnel. Outrageous. Terribly tragic case all around.”

Wheeler pled guilty on February 11, 2020, and admitted that she submitted fraudulent applications to the VA Spina Bifida Health Care Benefits Program where she overbilled for providing spina bifida care for a family member, K.L. Wheeler was the owner of a homecare services company, JRW Homecare Support Services. Wheeler was hired to provide services to K.L. due to K.L.’s spina bifida condition at the VA approved rate of $736 a day to provide eight hours of daily services. Wheeler’s care was supposed to include bathing, grooming, changing K.L.’s clothes and other issues associated with K.L.’s hygiene, food intake and lifestyle.   

Wheeler did not provide K.L. the care for and during the time period described.  Wheeler submitted claims to the VA stating that she provided care for K.L. eight hours a day, seven days a week, from October 2016 to April 2018 at the full daily rate of $736 a day. Wheeler gave a statement to the VA and the FBI admitting that she greatly inflated the rate and quality of the care that she provided to K.L. This was corroborated by other witnesses who provided statements that Wheeler did not provide eight hours of daily care. Wheeler further admitted that her conduct defrauded the VA of hundreds of thousands of dollars and deprived the victim of services.  The victim of the spina bifida diagnosis,  K.L., has since passed away.

Assistant United States Attorney Erik S. Goes handled the prosecution.

Stuart praised the work of the Veterans Affairs - Office of Inspector General (VA-OIG), the Federal Bureau of Investigation, the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG) for the investigation of the underlying fraud, and the National Park Service and the West Virginia State Police for their work in locating Wheeler.

The fraud investigation was conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.

 

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BECKLEY, W.Va. – Julie M. Wheeler, a federal defendant that reportedly fell into the New River Gorge National River from the Grandview overlook on Sunday, May 31, 2020, was found hiding in a closet at her Beaver home yesterday. Both Wheeler and her husband, Rodney Wheeler, were arrested by the West Virginia State Police on several state charges in connection with faking a missing person’s report. Wheeler is scheduled to be sentenced on June 17, 2020 for a federal health care fraud conviction, for which she faces up to 10 years in prison. She pled guilty to the charge in February 2020. As part of her plea agreement, Wheeler will also pay an amount of restitution ranging from $302,131 to $469,983, to be determined by the Court at sentencing.

Officers from several federal, state and local law enforcement agencies, along with rescue crews, began their extensive two day search for Wheeler after a 911 call was placed Sunday evening. The search and rescue efforts included a search by helicopter and a search on foot using a rope line to go down into the jagged, deep canyon of the New River Gorge. 

“It is hard to hide at home,” said United States Attorney Mike Stuart.  “My team is in close communication with the Raleigh County Prosecutor and the West Virginia State Police. We are monitoring the developments in the Wheeler investigation. We are conducting a thorough federal investigation at this time. I have directed federal resources to ensure we bring every appropriate federal charge – against Ms. Wheeler and any other persons involved in this matter. I want to commend the excellent investigative work of the West Virginia State Police and all those involved in her search and rescue. West Virginia law enforcement professionals are real pros and they utilized critical resources and risked their lives to try to save or recover the defendant from what was falsely reported to be an awful tragedy. This is an ongoing investigation as it pertains to any federal criminal charges.”

 

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Defendant fraudulently obtained over $300,000

CHARLESTON, W.Va. – Julie M. Wheeler entered a guilty plea for federal health care fraud, announced United States Attorney Mike Stuart.  Wheeler, 43, of  Beckley, faces up to 10 years of incarceration, a $250,000 fine, and  three years of supervised release when sentenced on May 20, 2020.  She will also be subject to an order of restitution in an amount ranging from $302,131 to $469,983, with the final determination to be made by the Court at sentencing.  

“Can you imagine?  Wheeler defrauded the Spina Bifida Health Care Benefits Program and in the process stole hundreds of thousands of dollars from taxpayers,” said United States Attorney Mike Stuart.  “Taking advantage of the condition of spina bifida of a child for personal greed is truly a despicable crime. Wheeler even admitted that she defrauded the VA of hundreds of thousands of dollars and deprived the victim- a child diagnosed with spina bifida- of services.  The VA provides critical benefits and services to heroic veterans and their dependents.  Our veterans deserve better.  The families of our veterans deserve better.  And the victims of terrible conditions like spina bifida deserve all of God’s graces.  Greed is a terribly destructive human condition.”

The VA provided health care benefits to certain Korean and Vietnam War veteran’s children who were diagnosed with spina bifida through the Spina Bifida Health Care Benefits Program.  Spina bifida is a type of  birth defect where there is an incomplete closing of the spine, potentially leading to complications including difficulty in walking, poor bladder or bowel control, and difficulty in mobility.  A veteran’s child, K.L., received such a diagnosis and qualified for in home care through this VA program. 

Wheeler was related to K.L and was also the owner of a homecare services company, JRW Homecare Support Services.  Wheeler was hired to provide services to K.L. due to K.L.’s spina bifida condition at the VA approved rate of $736 a day to provide eight hours of daily services.  Wheeler’s care was supposed to include bathing, grooming, changing K.L.’s clothes and other issues associated with K.L.’s hygiene, food intake, and lifestyle. 

Wheeler submitted fraudulent applications where she filled out VA forms and was overpaid for providing care for K.L.  Specifically, Wheeler did not provide K.L. the care for and during the time period described.  Wheeler submitted claims to the VA stating that she provided care for K.L. eight hours a day, seven days a week, from October 2016 to April 2018 at the full daily rate of $736 a day.  Wheeler gave a statement to the VA and the FBI admitting that she greatly inflated the rate and quality of the care that she provided to K.L. This was corroborated by other witnesses who provided statements that Wheeler did not provide eight hours of daily care.  Wheeler further admitted that her conduct defrauded the VA of hundreds of thousands of dollars and deprived the victim of services.  The victim of the spina bifida diagnosis,  K.L., has since passed away.

Stuart praised the work of the Veterans Affairs - Office of Inspector General (VA-OIG), the Federal Bureau of Investigation, the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG).   The investigation was conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud.   United States Attorney Mike Stuart announced the formation of ARREST in February 2019.  All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST.  Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.

Senior United States District John T. Copenhaver, Jr. presided over the plea hearing.  Assistant United States Attorney Erik S. Goes handled the prosecution.

 

Follow us on Twitter: @SDWVNews and @USAttyStuart 

 

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