The seal of the Department of Veterans Affairs at the agency's headquarters building in Washington, D.C., June 21, 2013. James Lyon, 80, of Independence, Missouri, pleaded guilty to defrauding the VA of more than $124,000 by falsely claiming combat service and decorations, including the Bronze Star and Silver Star. (Charles Dharapak/AP)
An 80-year-old Missouri man who refused Marine Corps training during the Vietnam War pleaded guilty this week to stealing nearly $125,000 in disability-related veterans benefits by repeatedly lying about his wartime service.
James Lyon of Independence, Mo. admitted in a plea agreement Tuesday that he had submitted several falsified discharge forms to the Department of Veterans Affairs claiming three different periods of Marine Corps service, including stints of four and six years.
He also falsely claimed to have earned the Bronze Star and Silver Star for combat service in Vietnam, although he had served fewer than 90 days and had never gone to war, the plea agreement states.
Between 2024 and this year, Lyon received over $124,000 in disability-related payments from the VA, prosecutors said.
During his brief Marine Corps service in 1966, Lyon said he was a conscientious objector, had concealed that status when he enlisted and had not understood that he was joining the Marine Corps when he took the oath, according to court records.
He refused further training and was discharged for unsuitability about three months after joining.
In February 1995, he began submitting falsified DD-214 discharge records to the VA that claimed incorrect dates of service. One said he served from 1962 to 1966, while another claimed service from 1966 to 1972.
By submitting the false records, he was able to obtain VA disability benefits, the court records state.
The records show Lyon also admitted to lying about being treated for ALS, a progressive disease that attacks the body’s nerve cells that control muscles.
He submitted documents claiming he was diagnosed with ALS and treated for it at the University of Kansas Health System, though the hospital had no record of treating him.
The medical records he submitted were fabricated and contained irregularities, such as inconsistent fonts and signatures, according to court records. But Lyon obtained compensation anyway.
Under the plea deal, the government agreed not to pursue further charges against Lyon for any other theft of benefits, false statements or stolen valor stemming from the same conduct.
“Veterans’ benefits represent a sacred national promise that is rooted in our gratitude to the men and women who have sacrificed and served our country,” U.S. Attorney R. Matthew Price said in a Justice Department statement.
“When individuals fraudulently obtain these benefits for their own personal gain, they undermine the integrity of these vital programs and divert resources from the veterans who earned them and need them most,” Price added.
Lyon, who agreed to pay back what he stole, faces up to 10 years in prison without parole. A sentencing hearing will be scheduled pending completion of a presentence investigation, the Justice Department said.
