Man Guilty in Disability Fraud Scheme

TEXARKANA — A Mount Pleasant man has been found guilty by a jury in a disability fraud scheme. Jim Bob Shipp, 60, was convicted Thursday of six counts of health care fraud and one count of making a false statement following a three day trial before U.S. District Judge David Folsom. Shipp faces up to five years in federal prison. A sentencing date has not been set.

According to information presented in court, from October 25, 1974 to December 1, 2009, Shipp devised and executed a scheme to defraud the Veterans’ Affairs Disability Compensation Program by overstating the severity and extent of his disability. As part of the scheme, Shipp represented to doctors that he had extreme loss of vision in both eyes. As a result of these false claims, the Veterans’ Affairs Disability Compensation Program awarded Shipp compensation at the 100% rate when he was only entitled to a lesser evaluation at the 30% rate. As a result of the scheme, Shipp received payments totaling $804,522.57 from the program.