An Independence, MO, man who defrauded the U.S. Department of Veterans Affairs (VA) by claiming false combat service and medals pleaded guilty in federal court earlier this week.
James Lyon, 80, pleaded guilty to fraudulently obtaining $124,262 in disability‑related payments from the VA.
In connection with his guilty plea, Lyon admitted to repeatedly lying about his military service, including falsely claiming he earned prestigious combat decorations and submitting fraudulent documents to the VA.
“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,” said R. Matthew Price, U.S. Attorney for the Western District of Missouri. “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. That is unacceptable. We will continue to vigorously prosecute those who seek to defraud programs intended to honor and support our nation’s veterans.”
This plea is one of many federal fraud cases pursued under the leadership of President Donald Trump and through the establishment of the Task Force to Eliminate Fraud.
“Engaging in stolen valor—whether it involves stealing a veteran’s identity or making false claims about military service and awards—not only undermines the sacrifices made by those who have genuinely served but also dishonors the veterans who have rightfully earned their benefits,” said Inspector General Cheryl L. Mason, Department of Veterans Affairs. “At VA OIG, we are deeply committed to holding these individuals accountable and will work closely with our partners at the Department of Justice to ensure they are prosecuted to the fullest extent of the law. Protecting the honor and benefits of veterans remains a top priority for us.”
Lyon admitted that although he refused Marine Corps training in 1966 as a conscientious objector, he falsely claimed he had completed three separate periods of Marine Corps service, including combat during the Vietnam War. Lyon also admitted to falsely claiming high‑level combat awards, including the Bronze Star and Silver Star, despite never having served in combat.
Lyon further admitted to lying to the VA about being diagnosed with Amyotrophic Lateral Sclerosis (ALS). Lyon used fabricated medical records to seek disability compensation based on that false diagnosis.
By lying about his service, claiming unearned combat decorations, and submitting false medical paperwork, Lyon received more than $124,000 to which he was not entitled.
Under federal statutes, Lyon is subject to a sentence of up to ten years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant United States Attorney James Kirkpatrick and was investigated by the Department of Veterans Affairs Office of Inspector General.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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