SAN DIEGO (CNS) - A former U.S. Navy servicemember pleaded guilty in San Diego federal court Thursday to his role in an insurance fraud scheme that involved making false medical claims to a military insurance program in exchange for unearned benefits.
Christopher Toups, 43, of Woodstock, Georgia, is one of several defendants charged by San Diego federal prosecutors with allegedly bilking the Traumatic Servicemembers Group Life Insurance Program out of around $2 million.
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The U.S. Attorney's Office says Toups, a former chief petty officer construction mechanic, took around $400,000 throughout the scheme, which lasted from 2012 to 2015.
Prosecutors allege Toups and other servicemembers submitted claims based on fake or exaggerated injuries and disabilities, and were assisted by a doctor and nurse in falsifying medical records to back their fraudulent ailments.
When others received claim payments, Toups received part of the money as a "processing fee," the U.S. Attorney's Office said. Kickback money also allegedly went to Dr. Michael Villarroel, the medical doctor for the unit where Toups worked, and Kelene McGrath, a former Navy nurse who Toups was married to during the time of the offenses.
The U.S. Attorney's Office also said some of Toups' co-defendants were stationed locally as part of the Explosive Ordinance Disposal Expeditionary Support Unit One in Coronado.
Toups and a number of other co-defendants await sentencing early next year.
"The Traumatic Servicemembers Group Life Insurance Program is designed to compensate service members who suffer serious and debilitating injuries while on active duty," said Stacey Moy, Special Agent in Charge of the FBI San Diego Division.
"Falsely claiming benefits from this program siphons money from deserving beneficiaries and makes medical care more costly for all of us."
