Federal grand jury indicts former Rochester couple in alleged VA benefits fraud

Federal grand jury indicts former Rochester couple in alleged VA benefits fraud
Michael DiGiacomo United State Attorney for the Western District of New York — Department of Justice
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A federal grand jury has indicted Michael Joyce, 53, and Sarah Joyce, also known as Sarah Shultis, 33, both formerly of Rochester, New York and now living in New Jersey. The indictment charges them with theft of government funds, wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States. If convicted, they face up to 20 years in prison and a $250,000 fine.

Assistant U.S. Attorney Nicholas M. Testani said that according to the indictment and a previously filed complaint, Michael Joyce submitted claims for disability compensation to the Department of Veterans Affairs (VA) in April 2016 for several reported disabilities including Post-Traumatic Stress Disorder (PTSD), Traumatic Brain Injury (TBI), and a back issue. After multiple consultations and examinations for these issues, he was awarded a 100% disability rating for PTSD, 30% for TBI symptoms, and 40% for his back.

In February 2018, Michael Joyce applied for permanent and total disability status (PTD), which removes an individual’s obligation to continue getting re-evaluated for various disabilities and makes them eligible for additional veteran benefits. In his Statement in Support of Claim at that time he wrote: “Every disability that I have either is the same but will not get better or has gotten worse.” He added that his PTSD had not improved, that he was more housebound than before, and felt he would die if he went outside. PTD status was granted in April 2018.

The couple also applied in November 2017 for Sarah Joyce to receive payments through the VA Caregiver Support Program as Michael Joyce’s caregiver. They claimed that Michael Joyce depended entirely on Sarah Joyce for daily tasks such as feeding, bathing, and dressing. She was approved as a caregiver by the VA and received an initial retroactive payment of $8,345.82 followed by monthly payments of $2,890.14 starting thereafter. As of March 2024 she had received over $250,000.

Investigators reviewed Michael Joyce’s Army personnel file and interviewed former members of his unit who reported inconsistencies with his claims; specifically stating that he had never been deployed to a combat zone. Surveillance later documented him walking without difficulty or assistance on multiple occasions—driving vehicles and performing household maintenance tasks like climbing ladders or shoveling snow.

The investigation leading to this indictment involved the Social Security Administration Office of Inspector General under Special Agent-in-Charge Amy Connelly’s direction along with the Department of Veterans Affairs Office of Inspector under Special Agent-in-Charge Christopher F. Algieri from the Northeast Field Office.

“The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.”



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