Two Army soldiers from Katy who participated in a nationwide National Guard recruiting kickback scheme were convicted on Wednesday by a Houston federal jury.
Jammie T. Martin, 37, and Michelle H. Davis, 34, were found guilty of conspiracy, bribery, wire fraud and aggravated identity theft following a four-day trial.
Martin served as an Army National Guard recruiter. Davis, an enlisted soldier, was eligible to participate in the Recruiting Assistance Program, which awarded bonuses to Guard members who helped boost enlistments during the Iraq War. The incentives were offered from 2005 through 2012 to address sagging recruitment.
Martin and Davis worked out of the Texas National Guard Armory in Houston on Westheimer near The Galleria.
At least $29 million in fraudulent claims are believed to have been made nationwide under the bonus program, which had few safeguards to prevent abuse. The national fraud investigation, which is scheduled to last until next year, is one of the largest in U.S. Army history.
Martin, Davis and Danielle V. Applin, 29, were named in an 18-count indictment handed down by a federal grand jury in August 2013 that accused Martin of attempting to "enrich himself unlawfully through corrupt means, namely, by accepting things of value from Applin, Davis and others, in exchange for defrauding the United States and performing acts in violation of his official duties."
Eligible soldiers or "recruiting assistants" received $1,000 for every referred soldier who enlisted in the needed military functions and another $1,000 once the person shipped to basic training. If the referred soldier had prior military service and didn't need basic training, the assistant received $2,000 when the referred soldier enlisted. Some referrals with special circumstances earned a $1,500 bonus.
False claims
According to evidence presented at trial, Martin - who was ineligible for the incentives - provided the personal information of potential soldiers to Davis and at least three other Guard soldiers who falsely claimed that they were responsible for the referrals and fraudulently received bonuses. Davis and the others gave about half of their payments to Martin as kickbacks. The scheme allegedly lasted from February 2009 until April 2011.
Applin made a plea deal with prosecutors in February 2014 in which she admitted to one count of conspiracy and one bribery charge. She is scheduled for sentencing in March before U.S. District Judge Lee Rosenthal.
Martin and Davis will be sentenced on May 7, by U.S. District Judge David Hittner, who presided at their trial, and face years in prison.
106,364 got bonuses
The Justice Department and the Army launched an investigation that reviewed all 106,364 people who received bonuses. The top five recipients pocketed more than $100,000 each.
As of January 2014, 1,219 people were under investigation and more than 100 faced charges in court or through military disciplinary proceedings. At least two dozen Texans have been charged with receiving improper bonuses.
———
©2015 the Houston Chronicle
Visit the Houston Chronicle at www.chron.com
Distributed by Tribune Content Agency, LLC
No comments:
Post a Comment