Air Force SNCO Found Not Guilty of $306,000 BAH Fraud

Air Force E-8 stationed in Hawaii set up dual BAH entitlement for New York. Four years later, the government discovered that her spouse was actually living and working in Hawaii, and had actually joined the Hawaii Air National Guard. DFAS identified her case as “tainted claim,” and began garnishing her wages for $306,000 recoupment. Her case was referred to a General Court-Martial for larceny, where she faced up to 10 years in jail, a Dishonorable Discharge, and the loss of her military retirement. At trial before officer members, JAG Defense highlighted the government’s inability to prove that our client understood the requirements for dual BAH under the Joint Travel Regulation, and presented an affirmative defense of Mistake of Fact. Result: The member panel found our client NOT GUILTY of larceny.