SAN DIEGO (CNS)– Two U.S. Navy service members were sentenced in San Diego federal court Friday for their functions in an insurance coverage scams scheme that involved making false medical claims to a military insurance coverage program in exchange for unearned advantages
Ronald Olmsted, 48, of Mobile, Alabama, and Anthony Coco, 43, of San Diego, are among 11 defendants arraigned for supposedly submitting incorrect claims to the Terrible Servicemembers Group Life Insurance Coverage Program. Prosecutors say the scheme defrauded the program of nearly $2 million total.
Olmsted was sentenced to 4 months in prison, followed by 4 months of house detention, which will be served as part of three years of supervised release. Coco got 4 months of house detention to be served as part of 3 years of probation.
The U.S. Attorney’s Office said the plan was led by co-defendant Christopher Toups, 43, of Woodstock, Georgia, a previous Chief Petty Officer construction mechanic who supposedly hired Olmsted, Coco and other service members to produce and file fraudulent claims to the Traumatic Servicemembers Group Life Insurance Coverage Program– or TSGLI– which compensates service members who suffer serious, debilitating injuries while on active duty.
District attorneys state Toups ran the scheme with help from U.S. Navy Leader Dr. Michael Villarroel, the medical physician for the system where Toups worked, and Kelene Meyer, a previous Navy nurse who Toups was married to during the time of the offenses.
Olmsted declared that he was hurt in a 2011 rappelling mishap and fell down a flight of stairs in 2012, which left him not able to take care of himself or do fundamental tasks. He received $175,000 from the TSGLI, and district attorneys state he sent out $55,000 to Toups.
Coco declared he reported on medical types that he broke both ankles in a fall that left him confined to a wheelchair. He was paid $100,000 and sent $65,000 to Toups, according to the U.S. Lawyer’s Office.
Seven offenders, consisting of Olmsted and Coco, have actually pleaded guilty in the case.
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