Florida Man Pleads Guilty to Receiving Stolen Veteran Benefits

ORLANDO, Florida — Jerry Smith, a 73-year-old resident of New Smyrna Beach, pleaded guilty on May 4, 2026, to one count of receiving stolen government money related to veteran disability compensation, per a U.S. Department of Justice press release from the Middle District of Florida.

The case impacts U.S. Department of Veterans Affairs disability programs, which provide monthly tax-free payments to over 5 million veterans nationwide for service-connected disabilities, according to VA annual reports. Smith's actions involved obtaining funds that were diverted from legitimate veteran recipients, though the press release does not specify the exact amount stolen or the number of affected individuals.

Federal statutes classify such theft as a felony, with penalties designed to recover losses to taxpayer-funded programs serving disabled former service members.

Prior to the plea, Smith had access to the stolen compensation without legal consequence. The guilty plea shifts his status to convicted felon, mandating a sentencing hearing in the U.S. District Court for the Middle District of Florida, with no date yet scheduled per the release.

This change takes effect immediately, barring Smith from further receipt of such funds and initiating restitution proceedings under 18 U.S.C. § 641, the statute cited for receiving stolen public money.

The plea triggers a judicial sentencing process where the court will determine prison time up to the 10-year maximum, along with potential fines and mandatory repayment, as outlined in federal sentencing guidelines. The U.S. Attorney's Office, led by Gregory W.

Kehoe, will present evidence at sentencing, potentially influencing VA oversight of disability claims processing. If imprisonment occurs, it will remove Smith from community activities and require federal Bureau of Prisons management of his incarceration, affecting local resources in New Smyrna Beach.

The U.S. Department of Justice has pursued similar cases in Florida's Middle District, with at least three veteran benefits fraud convictions in the past year per department records. The VA's disability compensation program, established under Title 38 of the U.S. Code, disbursed over $100 billion in fiscal year 2025 to support veterans' financial stability.