A former employee of the Cleveland Veterans Affairs Medical Center (VAMC) and his accomplice have been sentenced to prison for their involvement in a scheme involving unauthorized purchases on a government-issued credit card.
Dustin Jagger, 41, from Canton, Ohio, and Damarco McKinley, 26, from Cleveland, were each sentenced to 12 months and one day in prison by U.S. District Judge Dan A. Polster. Both will also serve three years of supervised release. Jagger pleaded guilty to Theft of Government Property while McKinley pleaded guilty to Interstate Transportation of Stolen Goods. In addition to the prison sentences, Jagger was ordered to pay $198,183.84 in restitution, with $29,124.56 owed jointly with McKinley.
Court documents show that Jagger used his position as a logistics employee at the VAMC to purchase electronics such as iPads and iPhones totaling nearly $200,000 using his work-issued credit card. Some items were kept for personal use while others were resold for cash through an online marketplace. Jagger sold part of these goods to McKinley.
McKinley was stopped by law enforcement in Indiana during a traffic violation while carrying more than $29,000 worth of electronics bought with the VAMC credit card. He was reportedly traveling to Chicago to resell the devices. During their investigation into McKinley, federal agents seized several Apple products—including 16 iPhones and eight iPads—purchased with the stolen funds. They also found a Glock 43 handgun with one round chambered, a loaded magazine, credit cards belonging to other individuals, and $4,262 in cash.
At Jagger’s home, investigators discovered additional electronic items purchased with his government-issued credit card such as speakers, soundbars, adapters, and headphones.
“Any federal employee who abuses their position for personal gain contributes to the erosion of the public’s trust,” said United States Attorney David M. Toepfer for the Northern District of Ohio. “We will not tolerate such dishonest actions that waste tax dollars and show disrespect for our veterans. We commend the work of VA investigators, which has led to putting a stop to this egregious behavior.”
“These sentences send a message that corrupt VA employees and those who profit from their illegal activities will be rooted out and prosecuted,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “These fraudulent activities erode public trust and divert taxpayer money intended for our nation’s deserving veterans. The VA-OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”
The case was investigated by Veterans Affairs-Office of Inspector General and prosecuted by Assistant United States Attorney Adam J. Joines for the Northern District of Ohio.
