A Rhode Island woman who worked for the Department of Veterans Affairs has been sentenced to 70 months in federal prison for orchestrating a sophisticated stolen valor and fraud scheme that defrauded veterans charities of more than $250,000 over five years.
Sarah Jane Cavanaugh, 32, pleaded guilty on August 9 to wire fraud, aggravated identity theft, forging a military discharge certificate, and fraudulently using military medals. The scheme, which ran from 2017 to 2021, exploited the goodwill of organizations dedicated to helping wounded and disabled veterans.
Cavanaugh's deception was comprehensive. She claimed to be a combat-wounded U.S. Marine veteran who had earned a Purple Heart and Bronze Star. According to her fabricated narrative, she had been wounded by a roadside bomb blast while deployed and subsequently developed service-related cancer. She also claimed to have saved the lives of fellow Marines during the bomb attack.
None of this was true.
Using these false credentials, Cavanaugh targeted the Wounded Warrior Project, one of the largest nonprofits supporting injured veterans, defrauding the organization of approximately $207,000. The money was claimed for groceries and physical therapy sessions, expenses she falsely attributed to her supposed service-related injuries.
Beyond the Wounded Warrior Project, Cavanaugh orchestrated additional fraudulent fundraising efforts, collecting more than $4,700 through a medical expense crowdfunding campaign. She justified these requests by claiming she needed money for personal medical bills related to her fabricated combat wounds.
The scheme involved more than just false claims. Cavanaugh also committed identity theft, stealing the identities of an actual Marine veteran and a Navy veteran who was suffering from cancer. She used their personal information to add credibility to her deceptions and to access additional resources.
To further solidify her false identity, Cavanaugh forged a military discharge certificate and made fraudulent use of military medals—crimes that carry particular weight given her employment at a Veterans Affairs medical center, a position that should have involved responsibility and care for genuine veterans.
The irony of her crimes is stark: Cavanaugh worked for the very federal agency designed to serve veterans while simultaneously defrauding the organizations that support them. Her access to the VA medical center may have given her insight into veteran experiences and military terminology that helped make her false claims more convincing.
