DOJ: Scheming trio defrauded Veterans Affairs out of millions of dollars

INDIANAPOLIS - Two Hawaiians and a Hoosier are in hot water after running a massage training school scheme that allegedly defrauded the Department of Veterans Affairs out of more than $9 million.




Brian Matsudo, 58, of Honolulu, Hawaii; Marshall Scott, 39, of Kapolei, Hawaii; and Raheem Wells, 37, of Indianapolis are all charged in connection with a scheme that illegally benefited from the GI Bill education benefits program.

According to the U.S. Department of Justice, Matsudo was the operator of a massage therapy training school in Honolulu and conspired with Scott and Wells from 2016 to 2022 to falsify enrollments in his school to obtain GI Bill payouts.




The DOJ said Scott worked at Matsudo's school and would submit enrollment verification forms to the VA. These forms were filed on behalf of 40 military veterans who supposedly were enrolled at the school for training. Scott is accused of knowing these forms contained false information. Both Scott and Matsudo were also accused of knowing the school wasn't in compliance with applicable VA rules.




Investigators said Wells was a student at the massage training school from 2020 to 2021 and recruited "students" to the school. These "students" were used to lie to the VA by claiming they were enrolled in the school and to acquire GI Bill payouts.




Matsudo allegedly paid Scott and Wells for each person the pair recruited to the scheme, while Wells made additional profit by demanding monthly payments from the individuals he recruited.




In April, Matsudo pleaded guilty to one count of conspiracy to commit wire fraud. He faces a maximum sentence of five years in federal prison.




Wells and Scott face potentially longer sentences. Both are charged with one count of conspiracy to commit wire fraud in addition to three counts of wire fraud. Wells is also charged with obstruction of justice for instructing witnesses to lie to federal agents.




Both Wells and Scott can face 20 years imprisonment or more.





via: https://fox59.com/news/indycrime/doj-scheming-trio-defrauded-veterans-affairs-out-of-millions-of-dollars/