The founder of a Cuyahoga County-based nonprofit veterans charity will serve four years in prison for lying to former military members and scamming the United States Department of Veterans Affairs of roughly $20 million.
Richard Rompala, 65, a Florida native, was one of four Senior Veterans Administration Services members charged with the fraud last year. Prosecutors claim he would contact veterans and tell them they were entitled to specific treatments and benefits when they were not and then send their false information to the VA to get money before pocketing it himself.
“Rompala’s scheme preyed on veterans who were simply seeking help,” Cuyahoga County Prosecutor Michael O’Malley said in a statement. “Today’s sentence delivers justice and sends a clear message that fraud targeting veterans will not be tolerated.”
In January, Rompala pleaded guilty to the following felonies:
- Attempted engaging in a pattern of corrupt activity
- Aggravated theft
- Money laundering
- Incomplete, false, and fraudulent returns
- Prohibited acts and practices
- Tampering with records
Additionally, SVAS (which had a Brooklyn address) pleaded to several charges as an entity and was fined $20,000 on Monday, the maximum punishment allowed by law. The cases of the remaining four defendants have progressed as follows:
- Karen Karl: Pleaded guilty in October to attempted engaging in a pattern of corrupt activity, telecommunications fraud, and tampering with records. Sentenced to probation.
- Carolina Riemer: Pleaded guilty in October to attempting to receive stolen property. Sentenced to time served (one day in jail).
- Gina Ayala: Still awaiting trial on charges of receiving stolen property and tampering with records.
- Fourth suspect: Agreed to enter into a diversion program in an effort to have her record expunged. Originally charged with tampering with records and could be found guilty if she does not complete the program.
Gregory Billingsley, Special Agent in Charge of the VA Office of the Inspector General’s Central Field Office, issued the following statement:
“This sentence reflects the VA OIG’s commitment to hold predatory claims companies and their representatives accountable for defrauding a system meant to serve our most vulnerable veterans.
“The VA OIG thanks the Cuyahoga County Prosecutor’s Office and our law enforcement partners for their efforts in this investigation.”
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