WEST VIRGINIA WOMAN PLEADS GUILTY TO STEALING MORE THAN $175,000 FROM VETERANS HEALTH CARE BENEFITS PROGRAM

CHARLESTON, West Virginia — A Mercer County woman has pleaded guilty in federal court to stealing more than $175,000 from a U.S. Department of Veterans Affairs health care benefits program through a years-long false billing scheme involving medical massage therapy services.

Karen Shea Radford, 47, of Princeton, West Virginia, pleaded guilty to theft of government money and admitted to fraudulently obtaining $175,731.31 from the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA), according to federal prosecutors.

Court records show that Radford carried out the scheme between June 29, 2017, and August 14, 2023, while serving as an owner of Healthcare Therapy Services LLC (HCTS), which operated under the business name Medical Massage Therapy in Princeton.

According to court documents and statements made during the plea hearing, Radford submitted false reimbursement claims to CHAMPVA for medical massage therapy services that were never performed.

Federal prosecutors stated that two beneficiaries enrolled in the program received massage therapy only once per week during the period in question. Despite that, Radford admitted billing CHAMPVA as though those patients had received treatments multiple times per week, including on weekends.

Authorities said the fraudulent claims resulted in CHAMPVA paying $83,619.67 for one beneficiary and $81,323.16 for a second beneficiary based on services that were never provided.

Radford also admitted to submitting false claims totaling $10,695.29 for a third beneficiary between May 2018 and May 2022, along with an additional $93.19 in fraudulent claims involving a fourth beneficiary during October 2017.

In total, prosecutors stated that the false billing scheme resulted in losses of $175,731.31 to the federal government.

CHAMPVA is a federally funded health care benefits program administered by the Department of Veterans Affairs that provides coverage for eligible spouses, widows, widowers, and dependents of certain disabled veterans and veterans who died as a result of service-connected conditions. The program plays an important role in ensuring eligible military families have access to health care services and medical treatment.

Health care fraud involving federal benefit programs remains a significant concern for investigators due to the financial burden such schemes place on taxpayers and the potential impact on legitimate beneficiaries. Federal authorities routinely investigate providers accused of submitting false claims, billing for services not rendered, inflating treatment frequencies, or misrepresenting medical procedures in order to obtain reimbursement payments.

According to the U.S. Department of Justice, health care fraud schemes cost government programs billions of dollars annually and remain a major enforcement priority across multiple federal agencies.

As part of her plea agreement, Radford acknowledged responsibility for the full loss amount and agreed that restitution of $175,731.31 is owed.

Radford is scheduled to be sentenced on October 5, 2026.

She faces a maximum penalty of 10 years in federal prison, up to three years of supervised release, and a fine of up to $250,000. The final sentence will be determined by the court after consideration of federal sentencing guidelines and other statutory factors.

The investigation was conducted by the U.S. Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation.

United States Attorney Moore Capito announced the guilty plea and commended investigators for their work on the case.

Senior United States District Judge David A. Faber presided over the proceedings. Assistant United States Attorney Jennifer D. Gordon is prosecuting the case on behalf of the United States.

The case comes amid broader federal efforts to combat fraud involving taxpayer-funded programs. In April 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division, which focuses on investigating and prosecuting fraud, waste, and abuse involving federal benefit programs and government funds.

Because Radford entered a guilty plea, the case has moved beyond the charging stage and into sentencing proceedings.

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