A West Virginia woman has pleaded guilty to taking more than $160,000 in veterans and Social Security benefits intended for a family member while serving as that person’s appointed fiduciary and representative payee.
Barbara Ferrell, 63, of Seth, admitted earlier this week to theft of government monies after investigators traced a pattern of withdrawals and personal spending. Court filings say Ferrell oversaw funds deposited into a joint checking account and repeatedly used those deposits for her own purposes instead of the family member’s care. The total loss to the veteran and Social Security accounts is listed at $160,394.02.
Federal documents lay out the dates and roles that enabled the theft, describing Ferrell as the U.S. Department of Veterans Affairs appointed fiduciary from October 20, 2021, through March 11, 2024, and as the Social Security Administration representative payee from approximately August 2021 to November 2024. As part of her plea, she admitted to knowingly and fraudulently taking VA fiduciary benefits from April 13, 2022, through February 29, 2024, totaling approximately $114,660.82. She also admitted to taking roughly $45,733.20 in Social Security benefits from June 1, 2022, through July 9, 2024.
Prosecutors say Ferrell accessed benefit payments after they were electronically deposited and periodically withdrew cash from the joint account, then spent the money for personal enjoyment rather than the beneficiary’s needs. The scheme unfolded over multiple years, according to investigators with the VA Office of Inspector General and the Social Security Administration Office of the Inspector General. Those agencies worked with the U.S. Attorney’s Office to compile financial records and present the case in court.
United States Attorney Moore Capito issued a strong statement upon the guilty plea. “Stealing from veterans is a particularly disgraceful form of greed,” said United States Attorney Moore Capito. “These are men and women who put on our nation’s uniform and sacrificed in service to this country — and the idea that someone would deliberately prey on them for personal profit is disgusting. Our veterans deserve our gratitude and protection, not to be treated as targets. I commend the dedicated investigators of the VA Office of Inspector General for uncovering this fraud and relentlessly pursuing accountability. Together, we will continue to protect those who served and aggressively prosecute anyone who tries to exploit them.”
Special Agent in Charge Nate Landkammer with the VA OIG also commented on the case. “Today’s guilty plea sends a clear message that the VA OIG will vigorously investigate those who steal from vulnerable veterans who are unable to manage their financial affairs,” said Special Agent in Charge Nate Landkammer with the Department of Veterans Affairs Office of Inspector General (VA-OIG), Mid-Atlantic Field Office. “The VA OIG appreciates the support of the U.S. Attorney’s Office for their efforts to stop fraud within VA’s Fiduciary Program.” The agency highlighted coordination across offices to identify misuse and recover records.
The Social Security investigators emphasized accountability for those who abuse trust in family relationships. “This defendant intentionally exploited a family relationship to steal more than $45,000 in Social Security benefits intended for a relative,” said Amy Connelly, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA OIG), Boston–New York Field-Philadelphia Division. “We remain committed to investigating those who misuse benefits for personal gain and ensuring they are held accountable.” The case illustrates how representative payee and fiduciary safeguards can be circumvented when oversight is lacking.
Ferrell faces sentencing on November 16, 2026, with potential penalties that include up to 10 years in prison, at least three years of supervised release, and a fine up to $250,000, in addition to $160,394.02 in restitution. United States District Judge Joseph R. Goodwin presided over the hearing and Assistant United States Attorney Erik S. Goes is prosecuting the matter. The case also sits against a broader push by the Department of Justice to prioritize fraud enforcement, with the creation of a National Fraud Enforcement Division announced on April 7, 2026, and coordinated efforts tied to a federal task force focused on eliminating fraud and protecting taxpayer-funded benefits.
