Shelby County Man Convicted of Theft of Government Benefits

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The U.S. Attorney's Office, Eastern District of Kentucky annoucned a Shelbyville man, Jeremy Wayne Harrell, 43, was found guilty of theft of government benefits by a federal jury in Frankfort on Friday, August 23. The conviction followed a five-day trial, with the jury reaching a verdict in less than two hours.

Harrell was convicted of fraudulently obtaining more than $108,000 in Individual Unemployability (IU) disability payments from the U.S. Department of Veterans Affairs (VA). These payments are intended for veterans who are unable to maintain substantial gainful employment due to service-connected disabilities.

The court heard evidence that Harrell was awarded IU benefits in 2011 but continued to receive these benefits from 2019 through 2023, despite being ineligible. During this period, Harrell founded and served as CEO of Veterans Club, Inc., an organization he actively managed, dedicating 40 to 60 hours per week. His responsibilities included overseeing $400,000 in assets, organizing events, managing around 6,000 volunteers, conducting media interviews, and engaging with community and political leaders.

Despite his significant work activity, Harrell continued to receive IU benefits by providing false information to the government, portraying himself as unemployable and leading a restricted lifestyle. The evidence presented at trial revealed that Harrell deliberately concealed his active role as CEO to maintain his eligibility for the benefits.

“This case highlights a fundamental principle: preventing individuals from wrongfully taking government assistance intended for those genuinely in need,” said Carlton S. Shier, IV, U.S. Attorney for the Eastern District of Kentucky. “Harrell’s deception diverted funds that should have been directed to other eligible veterans. I commend our law enforcement partners and trial team for their work in securing this verdict.”

The investigation was conducted by the U.S. Department of Veterans Affairs Office of Inspector General, and the case was prosecuted by Assistant U.S. Attorney James T. Chapman.

Harrell is scheduled to be sentenced on December 9, 2024, and faces a maximum penalty of 10 years in prison and a fine of up to $250,000. The court will consider the U.S. Sentencing Guidelines and applicable federal statutes before determining the final sentence.