A West Virginia business owner admitted to a long-running fraud scheme that siphoned $175,731.31 from a veterans’ healthcare benefits program, pleading guilty to theft after billing for treatments that were never provided.
Karen Shea Radford, 47, of Princeton pleaded guilty to stealing government money from the United States Department of Veterans Affairs. Prosecutors say the total loss tied to her scheme was $175,731.31, and the case centers on false billing to a veterans’ benefits program.
Court filings show Radford ran Healthcare Therapy Services LLC, doing business as Medical Massage Therapy, during the period in question. From June 29, 2017, through on or about August 14, 2023, she submitted claims to the Civilian Health and Medical Program of Veterans Affairs, known as CHAMPVA, for services that were not actually rendered.
Two CHAMPVA beneficiaries were central to the scheme, and Radford admitted her shop provided massage treatments to each of them only once a week. Despite that, the practice billed CHAMPVA $83,619.67 for one beneficiary and $81,323.16 for the other by falsely claiming multiple appointments per week, including weekends.
Radford also acknowledged submitting false claims for a third beneficiary totaling $10,695.29 between May 21, 2018, and May 16, 2022, and a fourth beneficiary for $93.19 between October 4, 2017, and October 11, 2017. Those amounts were for services the government alleges never occurred, and they form part of the theft total attributed to the scheme.
The defendant is scheduled to be sentenced on October 5, 2025, and faces a maximum statutory penalty of 10 years in prison. The court could also impose up to three years of supervised release, a fine of up to $250,000, and restitution equal to the $175,731.31 loss.
The announcement was made by United States Attorney Moore Capito, who commended investigators from the U.S. Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Senior United States District Judge David A. Faber presided over the hearing, and Assistant United States Attorney Jennifer D. Gordon is handling the prosecution.
On April 7, 2026, the Department of Justice announced creation of the National Fraud Enforcement Division to focus resources on large and complex frauds. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars, a priority that the department says will sharpen enforcement across federal benefit programs.
Those Justice Department efforts tie into a broader push to clamp down on abuse of federal benefits, backing the Task Force to Eliminate Fraud led by the Vice President. That whole-of-government approach matches the Republican emphasis on protecting taxpayers and holding fraudsters accountable.
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The case against Radford is an example of focused enforcement on benefit fraud, and the government will now move toward sentencing and restitution collection. The proceedings will resolve the criminal penalties and set the stage for recovery of the funds the government says were taken from veterans’ benefits.
