A Georgia man has been indicted on federal charges accusing him of falsely claiming to be a U.S. military veteran for nearly 27 years in order to obtain medical care through the Department of Veterans Affairs (VA).
Perry Patalano, 63, of Augusta, was indicted by a federal grand jury in the Southern District of Georgia, U.S. Attorney Margaret E. “Meg” Heap announced Aug. 24. He faces three counts, including health care fraud, theft of government money, property or records, and aggravated identity theft.
Patalano allegedly defrauded the Veterans Health Administration from July 31, 1997, until June 6, 2024, according to the indictment. He purportedly presented himself as a U.S. veteran, using an actual veteran’s identity.
Prosecutors said the deception caused the agency to pay for, or become responsible for, medical services he received in Georgia over that period. An indictment is only an allegation, and Patalano is presumed innocent unless and until proven guilty.
These charges carry significant potential penalties if they lead to a conviction. Health care fraud is punishable by up to 10 years in prison. A theft count carries a maximum of up to 10 years as well.
One count carries an enhanced consequence. Under federal law, a conviction on the aggravated identity theft charge carries a mandatory two-year prison term.
This means it is added on top of any sentence imposed for the underlying offenses rather than served at the same time, according to the U.S. Sentencing Commission. A judge has no discretion to reduce or suspend it.
What Charges Were Filed
A second count stems from June 6, 2024, when prosecutors allege Patalano knowingly stole or converted to his own use more than $1,000 in VA health care benefits.
The third count alleges that he used another man’s name, knowing it belonged to a real person, to carry out the fraud. That other man has not yet been identified.
The VA Office of Inspector General said in a statement to Military.com that it was the only agency to investigate the case and estimated the total loss to the VA at about $63,000 over the period covered by the indictment.
That figure is far larger than the more than $1,000 cited in the single theft count, reflecting the nearly 27 years the fraud is alleged to have continued.
Patalano was one of several people indicted by the August term of the grand jury in unrelated cases.
Military.com submitted questions to the VA Office of Inspector General about its role in the investigation, the scope of the alleged loss, and how such schemes are detected. The office did not immediately respond.
A Recurring Target
Fraud against the VA draws steady attention from federal investigators, in part because money diverted through false claims comes out of a system meant for those who served.
The VA serves more than 8.6 million people enrolled in its health care system and projects a veteran population of more than 17.5 million—a scale the OIG said makes some level of fraud a persistent risk.
“As with other government benefits, fraud will always be a factor,” the VA OIG told Military.com. The office said its special agents, analysts, auditors and inspectors work to identify gaps that could enable fraud and to ensure VA benefits “are used as intended” to support veterans and their families.
The U.S. Attorney’s Office said the charges stem from federal investigators’ work and that the case remains active.
Patalano’s case had not been scheduled for trial at the time of the announcement. The office encourages anyone to report suspected fraud, waste, or abuse through its hotline at vaoig.gov.
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