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Healthcare Worker Pleads Guilty to $250,000 Travel Reimbursement Fraud at Border Facilities
A healthcare worker employed by a government contractor has admitted to submitting nearly $250,000 in fraudulent travel claims while working at U.S. Customs and Border Protection (CBP) detention facilities in San Diego County.
Neery Velazquez, 31, of San Diego, pleaded guilty on Thursday to a single count of False Claim in federal court. He now awaits sentencing scheduled for July 14, 2026, before District Judge Cathy Ann Bencivengo.
According to court documents, Velazquez was hired in January 2020 to work as a “traveler” performing contracted healthcare services for CBP away from his permanent residence in Las Vegas. Under this arrangement, contractor employees are eligible for reimbursement of lodging, meals, and incidental expenses when on “Temporary Duty” (TDY) travel more than 50 miles from their permanent home.
The fraud began in 2021 when Velazquez relocated his permanent residence to San Diego, which should have terminated his eligibility for travel reimbursements. Despite this change, between 2021 and 2024, he continued submitting approximately 35 monthly travel claims, falsely asserting entitlement to reimbursement for expenses while on supposed TDY status.
Investigators discovered that Velazquez had created elaborate documentation to support his fraudulent claims, including a forged month-to-month lease agreement with a fictitious landlord. He also submitted falsified rental receipts to make it appear he was paying thousands of dollars more for temporary housing than he was actually paying for his permanent residence.
Of the approximately $244,019.48 Velazquez claimed, CBP had already reimbursed $181,082.85 before discrepancies were identified.
The case represents just one component of a much larger investigation led by the Department of Homeland Security’s Office of Inspector General and CBP’s Office of Professional Responsibility. Investigators uncovered that nearly one-third of the contractor’s 100 employees on TDY status in the San Diego area were engaged in similar travel benefits fraud.
The broader investigation determined that these employees collectively submitted more than $1.59 million in false travel claims. In response, CBP offset these losses by withholding funds otherwise payable to the contractor based on findings of fraud.
The investigation has had a significant financial impact beyond the immediate case. Heightened scrutiny resulted in a marked decrease in travel claims submitted by the contractor to CBP—dropping from an average of $3.9 million per month in 2023 to $3.1 million per month in 2024. This reduction represents a cost avoidance of approximately $9.6 million.
U.S. Attorney Adam Gordon emphasized the importance of protecting taxpayer funds, stating, “Every dollar stolen through fraudulent travel claims is a dollar taken directly from the pockets of hardworking taxpayers. We stand committed to preserving a government that stewards the public’s money wisely and protects it from wrongdoers.”
Joseph V. Cuffari, Inspector General of the U.S. Department of Homeland Security, added that the guilty plea “sends a strong message that those who attempt to defraud the government and American taxpayer will be identified and held accountable for their actions.”
Jeffrey Egerton, Acting Executive Director of the Investigative Operations Directorate at CBP’s Office of Professional Responsibility, noted that the resolution “reaffirms our duty to protect taxpayers and ensure those who misuse government funds are held accountable.”
If convicted, Velazquez faces serious consequences. The False Claim charge carries maximum penalties of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater.
The case is being prosecuted by Assistant U.S. Attorney Patrick C. Swan, with the investigation led by the Department of Homeland Security’s Office of Inspector General, CBP’s Office of Professional Responsibility, and CBP’s Office of Finance, Investment Analysis Office.
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18 Comments
This incident is a stark reminder that even in the healthcare field, where we expect the highest standards of professionalism and ethics, there can be those who exploit the system for their own benefit. Rigorous auditing and oversight are clearly needed.
Well said. Healthcare workers have a duty of care to the communities they serve, and breaching that trust through fraud is unacceptable. Hopefully, this case will lead to improved safeguards and accountability measures.
This is a concerning case of fraud and abuse of government funds. It’s important that healthcare workers entrusted with serving vulnerable populations maintain the highest standards of integrity and accountability.
Agreed. Submitting fraudulent travel claims undermines public trust and diverts resources away from essential services. Hopefully the sentencing serves as a deterrent to prevent similar incidents in the future.
While the details of this case are troubling, it’s important to remember that the vast majority of healthcare workers are dedicated professionals who uphold the highest standards of integrity. Isolated incidents like this should not overshadow the important work they do.
You make a fair point. It’s critical that we don’t let a single case of fraud tarnish the reputation of the entire healthcare industry. However, this incident does highlight the need for continued vigilance and robust oversight to protect the public’s trust.
While the specifics of this case are troubling, it’s a good reminder of the importance of robust oversight and accountability measures in the healthcare industry, particularly when dealing with government contracts and public funds.
You make a fair point. Stronger internal controls and auditing processes could help prevent similar incidents of fraud from occurring in the future. Transparency and vigilance are crucial.
This case is deeply concerning, as it involves a breach of trust by a healthcare worker tasked with serving vulnerable populations. It’s crucial that the industry maintains the highest standards of ethics and accountability to protect the public’s trust and ensure resources are used effectively.
Well said. Fraud in the healthcare sector can have far-reaching consequences, both in terms of wasted public funds and eroded confidence in the system. Robust oversight and a culture of integrity should be the top priorities to prevent such incidents from occurring.
It’s troubling to see a healthcare worker abuse their position of trust for personal gain. While the details of this case are concerning, I hope it serves as a wake-up call for stronger oversight and accountability measures in the industry.
Absolutely. Fraud like this can have far-reaching impacts, not just on government budgets but also on the people who rely on these essential services. Robust controls and a culture of integrity should be the norm.
This is a disappointing development, but it’s crucial that incidents like this are brought to light and addressed swiftly. Maintaining the integrity of our healthcare system, especially in sensitive settings like detention facilities, should be a top priority.
I agree. Fraud undermines the public’s trust in the healthcare system and can have real consequences for the vulnerable populations it serves. Ensuring accountability and upholding ethical standards is vital.
It’s disheartening to see someone in a position of responsibility take advantage of the system for personal gain. Fraud like this erodes public confidence and can have real consequences for the people who rely on these services.
Absolutely. Healthcare workers should be models of ethical behavior, not perpetrators of fraud. Hopefully this case sends a strong message that such actions will not be tolerated.
Fraud in the healthcare system is a serious issue that erodes public confidence and diverts resources away from essential services. This case serves as a sobering reminder of the need for stronger internal controls and accountability measures to prevent such abuses.
Agreed. While it’s troubling to see a healthcare worker engage in such unethical behavior, it’s important that we focus on solutions rather than generalizations. Improved training, auditing, and whistleblower protections could help mitigate the risk of similar incidents in the future.