A Kent Army veteran who falsely claimed she was wheelchair-bound to collect more than $1 million in veterans benefits — while traveling and buying a second home — has been sentenced to federal prison.
Kelly Lee-Carroll, 58, was sentenced to 17 months behind bars in Seattle federal court Tuesday, March 17, for orchestrating a long-running scheme that defrauded the Department of Veterans Affairs, according to the US Attorney’s Office.
Prosecutors said Lee-Carroll claimed she was unable to walk or care for herself and required around-the-clock assistance, allowing her to collect more than $11,000 per month in benefits intended for severely disabled veterans.
In reality, investigators determined she was able to walk and travel independently, taking trips to destinations including Las Vegas, Mexico, and Jamaica without caregivers.
Authorities said Lee-Carroll also used the funds to support a lifestyle that included purchasing a second home in Las Vegas and maintaining a primary residence in Kent.
She recruited her sister and son into the scheme, listing them as full-time caregivers so they could be paid through VA programs, prosecutors said. Both were also working other jobs during times they claimed to be providing care.
Her son, Robert Nelson III, 28, was sentenced to 14 months in prison in November, while her sister, Katoya Grant, 41, received a time-served sentence and six months of supervised release earlier this month.
In total, the scheme resulted in more than $1.1 million in fraudulent payments. Lee-Carroll was ordered to repay $932,142 in restitution.
US District Judge James Robart criticized the conduct at sentencing, saying “Ms. Lee-Carroll broke the trust she had with her fellow veterans. It was intentional and it went on for an extended period of time.”
Officials said Lee-Carroll served briefly in the Army in 1986 and later in the Army Reserves until 1994. While prosecutors acknowledged she qualified for some disability benefits, they said she exaggerated her condition to obtain far more than she was entitled to receive.
All three defendants pleaded guilty to conspiracy to commit theft of government property and health care fraud.
The case was investigated by the Department of Veterans Affairs Office of Inspector General.
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