California National Guard Sergeant Commits $15.2 Million Fraud to Aid Fellow Officers

A ranking California National Guard officer pleaded guilty Monday to defrauding the government of $15.2 million on behalf of her fellow officers, the California Department of Justice has reported.

Retired Master Sergeant Toni L. Jaffe, 52, admitted that she routinely submitted false claims to help fellow members of California National Guard obtain bonuses or access to loan repayment programs she knew they were not eligible for. Jaffe had worked for 15 years as bonus and incentive manager for the guard.

As part of her plea agreement, Jaffe admitted responsibility for $15.2 million in wrongfully paid bonuses and loan repayments between 2007 and 2009. An audit of the full loss is ongoing. And it’s possible that Jaffe won’t be the only member of the California National Guard to face charges. Those who benefited from the fraud may also have to answer to the government.

"The deliberate misappropriation of tens of millions of dollars of federal government money is unacceptable, and those responsible for stealing federal money through fraud will be prosecuted to the fullest extent of the law," U.S. attorney André Birotte Jr. said in a written statement. "We hope this federal case sends a clear message that we will continue to safeguard federal funds against fraud and abuse, whether it occurs within the California National Guard or elsewhere."

Noting that the investigation is ongoing, assistant U.S. attorney Aaron May declined to say how many members of the California National Guard benefited from the fraud.

“There are laws against submitting false claims to the federal government, whether you do it intentionally or inadvertently,” May said.

Jaffe faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. As part of her plea agreement, she is required to pay full restitution to the United States, which amounts to $15.2 million.

The California National Guard is the nation’s largest guard force with more than 22,000 soldiers around the state. Locally, the Los Alamitos Joint Forces Training Base is home to the Guard’s 40th Infantry Division.