Owners, employees of Savannah-based Scooba Shack plead guilty Veterans Affairs fraud
Owners, managers and instructors at Savannah and Richmond Hill-based Scooba Shack have pled guilty in federal court to submitting false claims to the Department of Veterans Affairs (VA) through scuba classes targeting military veterans education benefits. Employees with the St. Marys-based Diver’s Den were also part of the scheme.
In total, the five defendants defrauded more than $4 million from VA education benefits, which helps pay college tuition, career counseling and training to U.S. military veterans and service members.
“The scope of the fraud uncovered in this investigation is stunning, particularly when you consider the scheme siphoned funds intended for providing legitimate education assistance to former service members,” said Georgia Southern District Court U.S. Attorney David Estes.
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The Department of Veterans Affairs Office of Inspector General uncovered the fraud, which is being prosecuted by the U.S. Attorney’s Office for the Southern District of Georgia.
As described in court documents, the five defendants worked in various capacities with the businesses and caused false submissions to be made to the VA. The false submissions misstated the businesses’ compliance with VA regulations, dates of students’ attendance, and hours of instructions, among other information. Some of the defendants also participated in creating fictitious scholarship programs to provide the appearance that a required percentage of non-VA students participated in those classes.
According to court filings, on or about May 5, 2018, Scooba Shack applied to the VA for approval to provide certain courses of study to veterans through the Post-9/11 GI Bill, a VA education benefit program that paid for tuition, housing, and other costs for veterans who met certain eligibility requirements.
On or about July 23, 2018, Scooba Shack received VA approval to provide eight classes. Scooba Shack billed the VA between approximately $2,488 and $20,511 per veteran student enrollee for each course.
The owners of the Scooba Shack, Robert Lanoue, 63, and Judith Lanoue, 59, both Savannah residents, pled guilty to false, fictitious, and fraudulent Claims. That charge carries a statutory penalty of up to five years in prison and significant financial penalties, followed by up to three years of supervised release. As part of their plea agreement, the two will forfeit $270,893.75 from their bank account, funds that will apply toward restitution of more than $3.2 million in losses to the VA.
The store manager, instructor and school certifying official of Scooba Shack, David Anderegg, 42, a Richmond Hill resident, also pled guilty.
In January 2019, the Lanoues set up the “Rick Brooks Memorial Scholarship.” The intent of the scholarship was to pay for non-VA funded students enrolled in Scooba Shack’s VA-approved classes. But the scholarship did not pay any funds. That meant non-VA funded students were allowed to attend classes for free or at discounted rates, which is in direct violation of the “85-15 rule.”
The 85-15 Rule, according to the VA website, prohibits paying VA benefits to students when more than 85% of the students enrolled are supported by VA tuition, fees, or other charges. From January 2019 through December 2021, Scooba Shack submitted claims to the VA for tuition payments totaling more than $3 million.
Kenneth Meers, a resident of Altamonte Springs, Florida, pled guilty to preparing and submitting false petitions. Meers was a school certifying official and course director at Scooba Shack from about May 2018 to April 2021, until he became a consultant at Diver’s Den around May 2020 and an instructor from about June 2021 to February 2022. He also directed other defendants to create the fake scholarships used to mask the percentage of students receiving VA education benefits. As part of his plea agreement, Meers agrees that the cost to the VA of the scheme exceeded $3.5 million.
Theresa Whitlock, 55, a St. Marys resident who operated Diver's Den, pled guilty to making a false statement. That charge carries a statutory penalty of up to five years in prison. Whitlock submitted claims to the VA for tuition payments totaling more than $1.1 million. As part of restitution, Whitlock agreed to forfeit $64,260.30 seized from Diver’s Den’s bank accounts.
Drew Favakeh is the public safety reporter for Savannah Morning News. You can reach him at AFavakeh@savannahnow.com.
This article originally appeared on Savannah Morning News: Savannah-based Scooba Shack owners plead guilty to defrauding veterans
