Texas man gets longest ever sentence related to Stolen Valor Act, posing as ‘war hero’
An East Texas man has been sentenced to more than 11 years in federal prison for multiple crimes, including violating the Stolen Valor Act, according to a news release from the Department of Justice.
Derek Robert Hamm, 39, of Tyler, pleaded guilty to violating the Stolen Valor Act, along with wire fraud, money laundering, using a fraudulent military discharge certificate and being a felon in possession of a firearm and ammunition, according to the DOJ. The 135-month sentence is the longest ever in relation to a fraud scheme involving impersonating a military service member or veteran.
The Stolen Valor Act, passed in 2013, makes it illegal to fraudulently wear medals, embellish rank or lie about military service to get money, property, employment, discounts or some other tangible benefit.
Hamm broke that law by inventing and playing out a character described by the Justice Department as “a wealthy and successful war hero.” He claimed to have served multiple tours of duty in Iraq, Afghanistan and other countries and said he was awarded the Purple Heart, Bronze Star, Silver Star and Distinguished Service Cross.
The Tyler man was ordered as part of his sentence to pay restitution of at least $2.3 million and give up any of the proceeds he gained by breaking the Stolen Valor Act, including jewelry, vehicles and cash amounting to around $1.7 million.
Hamm also represented himself as a relative of Oklahoma oilman billionaire Harold Hamm and claimed that gave him access to financial records and industry expertise, the DOJ said in the news release. He used the persona to build “an extensive network of friends” who he used to gain introductions to potential investors. He convinced them their investments would be “worthwhile ventures spearheaded by a trustworthy and capable entrepreneur,” according to the Justice Department.
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But Derek Hamm was not a decorated veteran, nor was he related to Harold Hamm, the Justice Department said. The funds he raised were not invested into the oil industry and instead, within hours of getting their money, Hamm used it to buy things for himself and his family.
The DOJ said Hamm bought expensive jewelry, vehicles and vacations to pricey resorts with private charter planes, all while telling investors the money had gone into successful oil projects. Even after he didn’t produce any returns, Hamm went back to investors for more money.
The charge of a felon in possession of firearms and ammunition stems from a 2020 case in which Hamm was convicted in Smith County, which is seated in Tyler, for theft of property, a state felony, according to the Justice Department. That prior conviction meant Hamm was prohibited from owning or possessing firearms or ammunition.
Hamm was found to be in possession of “dozens of firearms, including several rifles with high-capacity magazines, and ammunition for those firearms,” the DOJ said. Hamm used those weapons and the false identity he’d created of a decorated veteran to intimidate investors who questioned where their money was, authorities said.
The scams weren’t the first time Hamm impersonated a veteran, according to the DOJ. In 2020, he submitted falsified military records to a Smith County District Court, using them to leverage a less severe sentence. He used those same false documents to obtain Bronze Star license plates.
Following his January 2022 indictment, the Justice Department seized more than $350,000 worth of assets that included cash, jewelry and vehicles. They were sold before sentencing and the money forfeited to the government as part of the payment toward Hamm’s $2.3 million restitution judgment, since he didn’t have enough other assets to pay anything toward the amount owed.
The funds will be paid out to Hamm’s victims, according to the Justice Department.
Federal authorities are asking anybody who was or who knows one of Hamm’s victims to contact the FBI at 903-594-3503. Derek Robert Hamm also went by the names D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm and RD Hamm.
