King County woman, son, and sister, indicted for allegedly defrauding Veterans Affairs benefit programs

Seattle - A King County woman, her son, and her sister have been indicted by the federal grand jury on an 18-count indictment charging conspiracy, theft of government property, health care fraud and making false statements, announced U.S. Attorney Tessa M. Gorman. Kelly M. Lee-Carroll, 57, and her sister, Katoya F. Grant, 40, are summoned to appear for arraignment on the indictment November 7, Lee-Carroll's son Robert H. Nelson III, 27, is currently in state custody and the government has requested that he be moved to federal custody for arraignment on November 7, 2024, as well.

According to the indictment, between July 2012 and October 2024, Lee-Carroll claimed to be disabled to such a degree that she needed full time care for daily living. She claimed to be bedridden with paralysis in one leg and arm. She repeatedly represented that she needed a wheelchair to leave home. The indictment alleges that Lee-Carroll repeatedly lied to the VA about her condition and her ability to care for herself. The investigation revealed that Lee-Carroll did not require the use of a wheelchair outside her home and that she had use of both hands.

Lee-Carroll designated her sister and son as her caregivers so that they were paid for the hours they represented they cared for Lee-Carroll. However, the investigation revealed that on some of the occasions they claimed to be caring for Lee-Carroll, she was traveling to Las Vegas, Tennessee, or internationally to Mexico or Jamaica, without her caregivers. On other occasions when they claimed to be caring for Lee-Carroll, they were clocked in at other jobs such as driving a truck or working as an administrative assistant.

The indictment alleges that the scheme resulted in fraudulent payments from VA programs of over $1.1 million.

According to the indictment, Lee-Carroll served in the Army for three months in 1986, and then joined the Army Reserves from 1986-1994. Lee-Carrol claimed a service-related disability in 2012 and received caregiver funding in 2013.

All three defendants are charged with Conspiracy to commit theft of government property. Lee-Carroll is charged with seven counts of theft of government property and Nelson and grant are each charged with two counts of theft of government property. Lee-Carroll is charged with seven counts of health care fraud. Grant and Nelson are each charged with two counts of health care fraud. Finally, Lee-Carroll is charged with three counts of making a false statement.

Conspiracy to commit theft of government property is punishable by up to five years in prison. Theft of government property and health care fraud are punishable by up to ten years in prison. Making a false statement is punishable by up to five years in prison.

The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the Veterans Affairs Office of Inspector General (VA-OIG).

The case is being prosecuted by Assistant United States Attorney Yunah Chung.