PRINCETON, WV (LOOTPRESS) – A Princeton woman has pleaded guilty to theft of government money after admitting she stole more than $175,000 from a U.S. Department of Veterans Affairs health care benefits program through a fraudulent billing scheme.
Karen Shea Radford, 47, of Princeton, entered the guilty plea Wednesday in federal court.
According to court documents and statements made during the hearing, Radford carried out the scheme while serving as an owner of Healthcare Therapy Services LLC (HCTS), doing business as Medical Massage Therapy in Princeton.
Prosecutors said that between June 29, 2017, and Aug. 14, 2023, Radford submitted false bills to the Civilian Health and Medical Program of Veterans Affairs (CHAMPVA) for medical services that were never provided.
As part of her guilty plea, Radford admitted that HCTS provided massage services to two CHAMPVA beneficiaries once per week during the period but billed the program $83,619.67 for one beneficiary and $81,323.16 for the other by falsely claiming they received massages multiple days each week, including weekends.
Radford also admitted to falsely billing CHAMPVA $10,695.29 for a third beneficiary between May 21, 2018, and May 16, 2022, and $93.19 for a fourth beneficiary between Oct. 4, 2017, and Oct. 11, 2017, for services that were never performed.
In total, Radford admitted to stealing $175,731.31 from the program and has agreed to pay that amount in restitution.
Radford is scheduled to be sentenced on Oct. 5, 2025. She faces a maximum penalty of 10 years in prison, up to three years of supervised release and a fine of up to $250,000.
United States Attorney Moore Capito announced the guilty plea and commended the investigative work of the U.S. Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jennifer D. Gordon is prosecuting the case.
Federal officials noted that the case aligns with ongoing Department of Justice efforts to investigate and prosecute fraud involving taxpayer-funded benefit programs. The Department of Justice announced the creation of its National Fraud Enforcement Division on April 7, 2026, with a mission focused on combating fraud, waste and abuse in federal programs.
