Lakeville Man Avoids Prison Time for Embezzling VA Funds

A former Department of Veteran Affairs employee was sentenced Monday for embezzling nearly $70,000 in VA funds.

Michael Donaher, 41, of Lakeville, was sentenced by U.S. District Court Judge Indira Talwani to time served -- approximately one day -- in addition to three years of supervised release, with the first six months to be served in a sober house. Donaher was ordered to pay $69,720 in restitution.

Federal prosecutors back in May had recommended a sentence of one year and one day. That's when Donaher pleaded guilty to one count of embezzlement and theft of public money after being arrested and charged in January.

Donaher worked as an inventory management specialist for the Veterans Affairs Medical Facility in Brockton and was responsible for purchasing equipment. He conducted fraudulent transactions using his government-issued purchase cards and routed the proceeds to his personal bank account, according to the Office of U.S. Attorney Andrew E. Lelling in Boston.

Donaher attempted to conceal his fraud by making it appear as if the purchases were made through F.W. Webb, a company the VA used for legitimate business. In fact, the purchases were made through a company Donaher created on Square, Inc., a mobile payment app. The purchases were not for actual items ever received by the VA.

Donaher further attempted to hide his crime by annotating the items as having been received within the VA’s accountability system. Donaher routed approximately $70,000 of VA funds to his personal account since the scheme began in 2016, federal prosecutors said.

United States Attorney Andrew E. Lelling and Christopher Algieri, Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.