Couple charged with defrauding VA for hundreds of thousands of dollars in veterans’ benefits

A couple who used to live in Rochester are accused of defrauding the VA out of hundreds of thousands of dollars.

Michael Joyce, 52, and his wife Sarah Shultis, 32, now of New Jersey, were charged with theft of government funds, making false statements, conspiracy to commit wire fraud, and conspiracy to defraud the United States. They could face up to 20 years in prison and a $250,000 fine.

According to Assistant U.S. Attorney Nicholas Testani, who is handling the case, Joyce submitted claims for disability compensation to the Department of Veterans Affairs in April 2016 for several conditions: PTSD, an issue with his left hand, asthma, anxiety disorder, major depressive disorder, panic disorder, sleep apnea, gastroesophageal reflux, hypertension, tinnitus, gout, a Traumatic Brain Injury, unidentified cardiac issues, and unidentified issues with his left knee and both ankles. According to Testani, Joyce applied in February 2018 for a status of permanent and total disability (PTD), which means one doesn’t have to keep getting re-evaluated and is eligible for other veteran benefits. He said he was more housebound and felt he would die if he went outside. He was granted PTD status in April 2018. Also, in July 2019, Joyce listed himself as married and living with his wife and seven dependent children, which raised his payment for a disabled veteran. Also in 2017, the couple applied for Shultis to receive payments through the VA Caregiver Support Program, claiming that Joyce relied on Shultis for such tasks as feeding, bathing and dressing.

According to the U.S. Attorney’s Office, as of March 2024 Joyce has received over $393,158.14 in payments from the VA, and Shultis has received over $213,000.

Investigators determined that Joyce is in fact physically fit and has remodeled bathrooms and repaired a roof, and has been seen walking without difficulty, driving, shoveling snow and climbing a ladder. They also found that he had never been deployed to a combat zone, according to the U.S. Attorney’s Office.

The Social Security Administration Office of Inspector General and the Department of Veterans Affairs Office of Inspector investigated.