Missouri man pleads guilty to stealing $1.8 million in veteran’s disability benefits

Sayler A. Fleming, U.S. Attorney
Sayler A. Fleming, U.S. Attorney - U.S. Attorney' Office for the Eastern District of Missouri
0Comments

A man from Salem, Missouri has admitted to neglecting and then concealing the death of his quadriplegic uncle, a U.S. Army veteran, in order to fraudulently collect $1.8 million in government benefits over several years.

Brian K. Ditch, 45, pleaded guilty on Friday to four counts of wire fraud, one count of aggravated identity theft, and one count of being a felon in possession of a firearm.

Ditch had been responsible for his uncle’s care since 2008 but failed to provide adequate support. According to court documents, he locked his uncle away, provided insufficient care, and subjected him to verbal abuse. After gaining unauthorized access to his uncle’s financial accounts, Ditch regularly transferred money to himself.

Following the death of his uncle around 2019, Ditch concealed the passing from family members as well as from federal agencies including the Department of Veterans Affairs (VA) and the Social Security Administration (SSA). He hid the body in a shed behind his house and falsely told relatives that his uncle had moved into a nursing home. He also misled police by saying that his uncle was living with another caregiver.

The VA Disability Compensation program deposited approximately $1.6 million into the account since 2008, while an additional $235,210 was received from SSA benefits during this period. Ditch used these funds for personal expenses such as purchasing exotic reptiles and firearms despite being prohibited from possessing firearms due to previous felony convictions.

Sentencing is scheduled for January 8. Each count of wire fraud carries a potential sentence of up to 20 years in prison and a $250,000 fine; being a felon in possession can result in up to 15 years’ imprisonment and the same fine; aggravated identity theft includes a mandatory two-year prison term consecutive to any other sentence.

The investigation involved the Salem Police Department, Department of Veterans Affairs Office of Inspector General, Social Security Administration Office of Inspector General, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.

“This press release was posted November 13, after the end of the federal government shutdown.”



Related

Thomas C. Albus, U.S. Attorney

United States reaches $2.2 million settlement over pandemic loan

VSM Abrasives Corp. has agreed to repay over $2 million after being accused of receiving an ineligible pandemic-era loan under false pretenses. The U.S. Attorney’s Office says this resolution underscores efforts to protect relief funds distributed during COVID-19.

Sayler A. Fleming, U.S. Attorney

Six St. Louis area residents indicted in $8.3 million pandemic fraud case

Six people from St. Louis have been indicted over an $8.3 million pandemic relief fraud scheme involving false loan applications between March 2020 and December 2024. Authorities allege conspirators submitted dozens of fake PPP and EIDL claims using fabricated documents while collecting large sums meant for small businesses affected by COVID-19.

Sayler A. Fleming, U.S. Attorney

Three charged with defrauding cruise line of over $2 million, federal officials say

Federal prosecutors have charged three people with defrauding a cruise ship company out of more than $2 million through false invoicing schemes between June 2021 and September 2023. Authorities allege personal expenses were hidden within business transactions involving multiple companies tied to those accused.

Trending

The Weekly Newsletter

Sign-up for the Weekly Newsletter from Missouri Courts Daily.