RICHMOND, Va. – Vickie T. Armes, 56, of Henrico County, Va., was sentenced today to 42 months in prison, followed by three years of supervised release, for making false claims to the Servicemember Group Life Insurance (SGLI) program. Armes was also ordered to make restitution to the program in the amount of $803,456.16. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Henry E. Hudson.

            According to court documents, while a United States Air Force reservist, Armes and her spouse obtained life insurance through the U.S. Department of Defense’s SGLI program.  On Feb. 8, 2006, Armes submitted a fraudulent claim for SGLI death benefits, falsely reporting her spouse’s death, supported by a falsified death certificate.  An SGLI payment of $400,000 plus interest was subsequently made to Vickie T. Armes. 

            On Nov. 21, 2009, Armes filed a fraudulent claim for the United States for the survivor annuity of her spouse, again falsely asserting her spouse was deceased, and thereby received survivor annuity payments totaling $35,218.  On or about March 19, 2007, Armes forged and submitted what falsely appeared to be a claim by her son for SGLI death benefits, falsely reporting Armes’s death, supported by a falsified death certificate.  An SGLI payment of $400,000 plus interest was subsequently made to her son, which Armes then converted to her own uses by checks payable to her son whose name she forged, and cleared the checks through several different banks.  As a result, Armes defrauded the United States of $835,218. 

Armes pled guilty to theft of government funds on June 6, 2012. After her guilty plea, the United States learned Armes had committed similar false life insurance claims against a private insurance company.  The court relied on this additional conduct to enhance Armes’s sentence. 

According to information provided to the court, on May 1, 1999, Armes and her spouse obtained a life insurance policy issued through Lincoln National Life Insurance Company.  The policy owner and the insured was the defendant's spouse, with the primary beneficiary being Armes.  On Feb. 28, 2005, Armes had notified the insurance company that her spouse had suffered heart attack and died, supported by a forged death certificate.  On March 7, 2005, Lincoln National Life Insurance Company paid the fraudulent death claim to the defendant in the amount of $103,172. 

            On May 15, 1999, Armes obtained a life insurance policy issued through Lincoln National Life Insurance Company.  The insured was the defendant's son, and Armes was the primary beneficiary.  On October 3, 2005, the Armes notified the insurance company that her son had died in a vehicular accident, again supported by a false death certificate.  On Oct. 5, 2005, Lincoln National Life Insurance Company paid the fraudulent death claim to Armes in the amount of $101,020

            This case was investigated by the Defense Criminal Investigative Service for the U.S. Department of Defense.  Assistant United States Attorney S. David Schiller prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

 

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