DOJ: Scheming trio defrauded Veterans Affairs out of millions of dollars

INDIANAPOLIS — Two Hawaiians and a Hoosier are in hot water after running a massage training school scheme that allegedly defrauded the Department of Veterans Affairs out of more than $9 million.

Brian Matsudo, 58, of Honolulu, Hawaii; Marshall Scott, 39, of Kapolei, Hawaii; and Raheem Wells, 37, of Indianapolis are all charged in connection with a scheme that illegally benefited from the GI Bill education benefits program.

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According to the U.S. Department of Justice, Matsudo was the operator of a massage therapy training school in Honolulu and conspired with Scott and Wells from 2016 to 2022 to falsify enrollments in his school to obtain GI Bill payouts.

The DOJ said Scott worked at Matsudo’s school and would submit enrollment verification forms to the VA. These forms were filed on behalf of 40 military veterans who supposedly were enrolled at the school for training. Scott is accused of knowing these forms contained false information. Both Scott and Matsudo were also accused of knowing the school wasn’t in compliance with applicable VA rules…

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