Tyler man indicted for using stolen valor to defraud investors

TYLER — A federal grand jury has returned a 33-count indictment charging a Tyler man for fraud schemes. Derek Robert Hamm, 38, was charged with wire fraud, money laundering, violations of the Stolen Valor Act, using a fraudulent military discharge certificate and being a felon in possession of firearms and ammunition. According to our news partner KETK, the Stolen Valor Act of 2013 makes it illegal to fraudulently wear medals, embellish rank, or make false claims of military service to obtain money, employment, property, or some other tangible benefit. The indictment stated that Hamm presented himself to be a former member of the Army Special Forces who had served multiple tours of duty in Iraq, Afghanistan and other countries.

Hamm claimed that he had been awarded a Purple Heart, a Silver Star and a Bronze Star for his service. According to a release he had not received any of those awards. He allegedly falsely claimed to be related to Harold Hamm, a billionaire oilman in Oklahoma. He claimed this gave him access to financial resources and oil industry expertise. According to the indictment, Hamm’s false persona of being a wealthy war hero helped him to create an extensive network of people who introduced him to potential investors. Authorities said he then defrauded those investors in schemes related to the oil and gas industry and did not invest the funds as promised. Instead of investing the funds, Hamm allegedly spent the money on lavish personal gifts including nearly $500,000 on jewelry and vehicles for himself and his family.

The indictment also alleges that Hamm was a felon in possession of firearms and ammunition, as well as a domestic violence convict in possession of firearms and ammunition. He was convicted in Smith County in 2020 for theft of property which is a state felony and he was also convicted in 2005 for assault of a family member.

If convicted, Hamm faces up to 20 years in federal prison.