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LOS ANGELES (CNS) - The former director of a San Fernando Valley trucking school faces sentencing today for helping to siphon more than $4 million from the U.S. Department of Veteran Affairs in GI Bill funds for classes that veterans never attended.
Robert Waggoner, 59, of Canyon Country pleaded guilty last year to five federal wire fraud counts.
His co-defendant, Emmit Marshall, 54, was sentenced in October to four years behind bars and ordered to pay $4.1 million in restitution. The Woodland Hills resident had also pleaded guilty to five federal counts of wire fraud.
Marshall was owner and president of the Alliance School of Trucking, and Waggoner was a director at the Chatsworth school.
Marshall recruited veterans to take trucking classes paid under the post-9/11 GI Bill. AST was certified to offer classes that included a 160-hour tractor trailer and safety class and a 600-hour select driver development program.
Marshall told the veterans they wouldn't have to attend the classes, but could still collect housing and books fees supplied by the VA, while tuition payments were disbursed directly to the school, according to prosecutors.
Knowing that the vast majority of veterans enrolling at AST did not intend to attend any portion of the programs, Marshall and Waggoner created and submitted bogus enrollment certifications and student files that contained counterfeit documents, court documents show.
From the end of 2011 through April 2015, as a result of the scheme, the VA paid AST about $2.35 million in tuition and fee payments for veterans who purportedly attended approved programs at AST, according to the April 2017 indictment.
During that same period, the VA also paid roughly $1.96 million in education benefits directly to veterans who purportedly attended approved programs at AST, according to federal prosecutors.
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