Two Chicago U.S. Department of Veterans Affairs staffers accepted cash kickbacks after steering business to certain vendors, bilking the VA of millions of dollars, federal officials alleged Wednesday.
Andrew Lee, 66, was charged with wire fraud while Kimberly A. Dyson, 49, was charged with conspiracy to commit bribery and four counts of bribery, federal officials announced.
They were charged in separate indictments returned Tuesday in U.S. District Court in Chicago.
Lee and Dyson worked as prosthetic clerks at the Veterans Health Administration Prosthetics Service in Chicago.
Their jobs involved selecting certain vendors from which medical equipment needed for VA patients was ordered, according to the indictment.
But after paying the vendors with government purchase cards, they allegedly received cash payments as a kickback from people at the vendors, according to the charges.
The charges also allege that Lee schemed with Darren A. Smith, who operated a medical distribution company in Bolingbrook, to place orders for unnecessary and pricier monthly rentals of equipment from Smith’s company instead of buying the equipment as VA doctors ordered, in exchange for cash payments, federal official said.
The scam forced the VA to overpay Smith’s company by more than $1.38 million from 2016 to 2020 while Lee pocketed kickbacks from Smith of at least $220,000, the indictment states.
Smith, 57, of suburban Hazel Crest, was charged with seven counts of wire fraud.
rsobol@chicagotribune.com
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