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        Last of 12 Sentenced in VA Fraud

        WASHINGTON (Dec. 10, 2002) - On Dec. 4, the last of 12 people
convicted in a massive fraud against the Department of Veterans Affairs (VA)
was sentenced in federal court in Atlanta.

        Sarah Prater, a former supervisor and claims examiner in VA's
Atlanta regional office, was sentenced to 13 years in prison and ordered to
pay more than $11 million in restitution for her part in a scheme to pay
benefits in the name of deceased veterans.

        "We can take some comfort in the fact that no veteran was deprived
of his or her rightful benefits as a result of this fraud," said Secretary
of Veterans Affairs Anthony J. Principi.

        "This case also highlights the work of the men and women of VA's
Office of the Inspector General - vital work that is often done without
public recognition," Principi added. "The IG uncovered the fraud, led a
multi-agency investigation, and helped bring a complex prosecution to a
successful close."

        The work by VA's Office of the Inspector General (OIG) earned a
special "Award for Excellence" in October from the President's Council on
Integrity and Efficiency.

        "This was truly an OIG team effort and I am very proud to be
associated with such dedicated, hardworking professionals," said Inspector
General Richard J. Griffin.

        The scheme focused on creating fraudulent claims for 100-percent
disability that resulted in retroactive lump-sum payments to deceased
veterans.  That money, totaling about $11 million over eight years, was
diverted to Prater's accomplices.

        When criminal charges were revealed in August 2001, Principi
immediately undertook a number of corrective actions, including procedural
and technology-based controls that prevent or quickly identify similar
frauds and stronger accountability for VA managers.


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