Former Veterans’ Services Clerk Arraigned in Kickback Scheme

The former head administrative clerk for the City of Boston’s Veterans’ Services Department was formally charged today with a litany of fraud-related offenses for allegedly overpaying health care aides and demanding cash in return, Suffolk County District Attorney Daniel F. Conley said.

JOSEPH H. MILLER (D.O.B. 9/3/53) of Beverly was arraigned in Suffolk Superior Court this morning on a 20-count indictment charging him with seven counts of false statements by a public employee, seven counts of procurement fraud, two counts of solicitation of gifts by a public employee, two counts of larceny over $250, and single counts of attempted extortion and attempted larceny over $250.

The Suffolk County Special Grand Jury returned the indictments Friday after an extensive investigation by State Police detectives assigned to Conley’s office, Boston Police anti-corruption detectives, and Assistant District Attorney Edward Beagan of the DA’s Special Prosecutions Unit. Beagan led proceedings in the Special Grand Jury, which has investigated homicides, gang-related violence, and complex financial cases exclusively since 2006. Boston Police arrested Miller in South Boston on Friday evening; he posted $240 bail and walked into court today.

Suffolk Superior Court Clerk Magistrate Gary Wilson increased Miller’s bail to $1,000, calling the case “terribly upsetting” in that the alleged fraud took money from “a vulnerable section of our society.” Wilson further ordered that Miller not travel outside New England for more that five days at a time without notifying Suffolk County prosecutors.

Beagan told the court that Miller paid two women as health care aides with city funds that are later reimbursed at a rate of 75% by the state’s Department of Veterans’ Services. Miller allegedly demanded that those women provide him with a portion of that payment. Miller also allegedly tried but failed to pay a family member who refused to take part in the alleged scheme.

Miller allegedly approached the first woman in November 2009 and proposed that she work as a health care aide to her mother, the widow of a veteran, using another person’s license as a certified nurse’s assistant. Miller then instructed her to give him up to $1700 per monthly paycheck. When the woman balked at that instruction, Miller allegedly suggested that he could withhold her mother’s benefits.

Miller allegedly paid a second woman, this one a certified nurse’s aide, also to provide care through the city’s Veterans’ Services Department. In that case, he allegedly falsified time sheets in June 2010 so that she would be paid, then took $2550 from her. In July, he allegedly padded her paycheck with an additional $1600 that he demanded.

In November 2010, Miller also allegedly issued a check for more than $4185 to his niece. That check, which was cut after Miller allegedly presented the Veterans’ Services Department with fraudulent times sheets and other paperwork, was never successfully delivered. The niece refused to cooperate with Miller’s alleged plan.

The scheme came to prosecutors’ attention last summer, when the two women from whom Miller demanded kickbacks spoke with a lawyer. That lawyer in turn contacted Conley’s office. Prosecutors notified Mayor Thomas Menino of the investigation, leading to an audit of the Veterans’ Services Department and Miller’s suspension.

Miller is represented by attorney Paul Gannon. He will return to court on May 25. His trial has been tentatively scheduled for January 2012.