Woman Sentenced in VA Prosthetics Scheme

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A Houston woman has been given the maximum prison sentence following her conviction of conspiring to commit fraud against the U. S. Department of Veterans Affairs (VA) by generating purchase orders for fictitious goods and services, according to U.S. Attorney Ryan K. Patrick.

Eduora McDaniel, 76, pleaded guilty January 31 to conspiracy to commit wire fraud. McDaniel admitted she conspired with a vendor to defraud the VA. As a prosthetics representative for the VA, McDaniel had the authority to obtain prosthetic goods and services if a physician found it medically necessary, which she was authorized to pay using a government-issued credit card. McDaniel created fake purchase orders for her co-conspirator's company and paid them using her government credit card. McDaniel and the co-conspirator then split the payments.

U.S. District Judge David Hittner gave McDaniel the maximum 60-month sentence that will be followed by three years of supervised release. The court also ordered McDaniel to pay $290,000 restitution and a $100,000 fine and ordered the government to garnish the maximum amount of McDaniel's government pension until the restitution and fines are paid.

McDaniel's co-conspirator, Angela Hunter, pleaded guilty in August 2018. Hunter co-owned Divine Iron Works, a company that was an approved prosthetics vendor for the VA, according to the United States Attorney's Office, Southern District of Texas.