BAH and Travel Fraud

We represented an NCO at a General Court-Martial accused of Larceny, violating Article 121 of the Uniform Code of Military Justice (UCMJ), and making False Official Statements in breach of Article 107 UCMJ related to alleged BAH fraud.  Despite being wrongfully accused, my client was in a fight to save his career.  As well as to avoid a conviction, jail time, and a DFAS recoupment action of over $250,000.  We achieved a full acquittal through hard work, investigation, the careful use of expert witnesses, and an in-depth understanding of the Joint Travel Regulation (JTR). 

Things to Remember

Through similar cases, I have learned things that military members should consider when handling the finance office and finance issues.  Here are some things to keep in mind. Hopefully, they will help you avoid being the victim of a DFAS Audit.  Additionally, to defend expenses, vouchers, or other entitlement payments that are five-plus years old if you do.

Audits and the Finance or Pay Office

• DFAS audits are becoming increasingly common. There is no official audit policy or explanation behind a particular audit other than the whims of the auditor. 

• As our experts testified, it is not unusual to ask the same question of people in the finance or pay office and receive different answers. Therefore, whenever you receive guidance or advice from the finance or pay office, write that guidance.

Dependents

• Single parents, especially male parents, can expect scrutiny if they claim a child as a dependent. Be prepared to provide documentation demonstrating the status of your child’s custody.  As well as proof that you are providing support.

• If you are stationed overseas with or without dependents, the rules related to Overseas Housing Allowance (OHA), Family Separation Allowance (FSA), and Basic Allowance for Housing (BAH) are complex and often misunderstood. Especially if you have dependents who do not accompany you on the overseas tour.  You need to ask questions and document the guidance you receive.

• Your orders typically control your entitlements, but other forms complicate the process.  Ensure you seek clarification from an NCO in the finance or pay section if your dependents are moving. Make sure you document that conversation.

Keep Records

• Keep a personal file and record of your Leave and Earning Statements.  As well as a voucher and other documents related to pay and entitlements.

• Under the “Tainted Claim” policy, DFAS will seek to recoup all money paid in cases of an overpayment where they suspect a military member was at fault for the overpayment.  This means they will seek to recoup not just the amount of overpayment but the entire entitlement.

Protect Yourself

Due to ongoing changes to the JTR and an increased emphasis on audits at DFAS, military members can expect to be the subject of more scrutiny concerning entitlements, travel pay, and allowances.  Military members can face allegations of misconduct and even court-martial due to improper or incomplete guidance.  In this environment, it is critical to document everything and keep careful records.  If you or someone close to you is the subject of a DFAS audit or is facing charges related to alleged fraud, please call Crisp and Associates, LLC today and talk to one of our experienced attorneys.