Tyler man sentenced for stolen valor scam

TYLER – A Tyler man is sentenced to 11 years in federal prison Thursday in a Tyler court for a variety of charges, including using stolen valor. According to our news partner KETK, 39-year-old Derek Hamm in June pleaded guilty to money laundering, wire fraud, using a fake military discharge certificate, possession of a firearm by a felon and violation of the Stolen Valor Act. The Stolen Valor Act passed in 2013, makes it illegal to fraudulently wear medals, exaggerate rank and lie about military service to gain money, employment, property and other benefits.

Dallas FBI Special Agent in Charge Chad Yarbrough said, “The defendant invented a successful and noble persona to disguise his failed business and dishonest intentions in order to steal millions of dollars from unsuspecting investors. In addition to pretending to be an American hero, he was found to be in possession of dozens of firearms which was prohibited due to his criminal background. Mr. Hamm could not stop breaking the law, I am proud that we can work with our partners at the U.S. Attorney’s Office to uphold the Stolen Valor Act and ensure that courageous attribution stays with our nation’s bravest defenders.”

The U.S. Attorney’s Office said in a release that Hamm’s sentence was the largest ever imposed in relation to a fraud scheme involving the Stolen Valor Act.Officials said, as part of his sentence, Hamm agreed to pay restitution of at least $2.3 million and giving up proceeds from his criminal activities amounting to $1,675,000.