‘Despicable’: Kent woman who faked disability sentenced for $1.1M VA fraud scheme

A 58-year-old Kent woman was sentenced Tuesday to 17 months in prison for a long-lasting fraud scheme that stole more than $1 million in benefits from the Veterans Administration (VA).

Kelly M. Lee-Carroll recruited her sister and son to participate in the scheme that defrauded VA health care and disability benefits, the U.S. Department of Justice (DOJ) announced.

Lee-Carroll had claimed that she was unable to walk or care for herself and needed 24/7 care. Lee-Carroll was actually able to walk, traveled on exotic vacations, and purchased a second home in Las Vegas while collecting benefits intended for the most disabled veterans.

“As a veteran, I find this type of fraud against our programs despicable,” said First Assistant U.S. Attorney Neil Floyd. “These benefits to pay for care, and for caregivers, need to be carefully utilized so that they serve veterans as intended. They should not go for second homes, cars, exotic trips, or casino gambling as they did in this case. This defendant not only pays the price for her conduct, she roped in her family members who now have felony convictions.”

Lee-Carroll claimed to be bedridden while traveling internationally

Between July 2012 and October 2024, Lee-Carroll claimed to be disabled to an extent that required full-time care for daily living. She claimed to be bedridden with paralysis in an arm and a leg.

Lee-Carroll repeatedly presented herself as needing a wheelchair to leave her home. An investigation revealed that Lee-Carroll did not need the use of a wheelchair outside her home and actually had the use of both of her hands.

Lee-Carroll’s sister and son were designated as her caregivers, who would be paid by the VA for the hours that they claimed to have cared for her. The sister and son claimed to have been caring for Lee-Carroll while they were working in other jobs, such as driving a truck or working as an administrative assistant.

On some occasions, the sister and son claimed to be caring for Lee-Carroll as she was traveling to Las Vegas, Tennessee, or internationally to Mexico and Jamaica, without a caregiver present.

In total, the scheme stole more than $1.1 million in VA funds. Lee-Carroll was ordered to pay $932,142 in restitution.

In November 2025, the 28-year-old son, Robert H. Nelson III, was sentenced to 14 months in prison and was ordered to pay $282,698 in restitution.

The 41-year-old sister, Katoya F. Grant, was sentenced earlier in March to a “time-served” sentence with six months of supervised release. Grant was also ordered to pay $293,787 in restitution.

“This sentence sends a clear message that individuals who steal VA benefits will be held accountable,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of the Inspector General Northwest Field Office. “The VA OIG will continue to identify and eliminate fraud by seeking prosecution of those who swindle VA benefit programs that are intended to help veterans, their families, and caregivers. We thank the U.S. Attorney’s Office for their efforts in this investigation.”

Kent woman served briefly in Army, joined Reserves from 1986 to 1994

Lee-Carroll served in the Army for three months in 1986, and then joined the Army Reserves from 1986 to 1994. Lee-Carroll had claimed a service-related disability in 2012 and received caregiver funding in 2013.

Prosecutors acknowledged that Lee-Carroll did qualify for some disability payments, but not the more than $11,000 per month she was receiving.

“For years, Lee-Carroll falsely claimed that she was wheelchair-bound and bedridden to secure over $1 million in VA benefits that are earmarked for severely disabled veterans,” prosecutors wrote to the court in asking for an 18-month sentence. “She recruited her sister and son into her scheme to defraud the VA and taxpayers out of funds that should have gone to veterans who are, in fact, bedridden and who require round-the-clock care.

“The VA benefits that she secured through lies funded a lifestyle that included two homes, one in Kent that is worth over $1 million and one in Las Vegas worth $772,000, multiple vehicles, gambling, and frequent international trips,” prosecutors continued.

All three defendants pleaded guilty to conspiracy to commit theft of government property and a count of health care fraud.

Follow Jason Sutich on X. Send news tips here.