July 24, 2012

KNOXVILLE, Tenn. – Charles Kaczmarczyk, 59, and his wife, Martha Ann Kaczmarczyk, 62, both of Knoxville, Tenn., were arrested on July 24, 2012, on charges contained in a July 17, 2012, eight-count indictment, alleging that they conspired to steal public money from the U.S. Department of Veterans Affairs and the Social Security Administration.

Both Kaczmarczyks appeared today in U.S. District Court in Knoxville, before U.S. Magistrate Judge C. Clifford Shirley, Jr. They pleaded not guilty to the charges in the indictment. After the court originally announced its intent to release both defendants on bond, further questioning of the defendants resulted in the court ordering them held overnight and brought back before the court at 2:00 p.m. on July 25, 2012. were ordered by the court to be held overnight. A trial date was set for September 26, 2012.

The indictment, a copy of which is attached to this release, alleges that from October 2006 through May 2012, the Kaczmarczyks conspired to steal money from the United States by obtaining more than $1000 in disability payments and benefits from the U.S. Department of Veterans Affairs and the Social Security Administration.

In support of the conspiracy, it is alleged that Charles Kaczmarczyk fabricated information regarding his participation in Special Operation combat missions in which he did not participate. The indictment further alleges that the conspiracy was also supported by the manufacture of false U.S. Air Force records by Charles Kaczmarczyk showing that he had earned numerous medals for his combat experience, including two Purple Hearts and two Silver Stars. Additionally, the indictment alleges that Martha Ann Kaczmarczyk separately submitted false information to the Social Security Administration in support of her own disability claim.

If convicted both face a term of 10 years in prison and a $250,000 fine. Both are also subject to pay restitution and to forfeit the proceeds of this conspiracy.

Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.

This investigation was a joint effort between the Federal Bureau of Investigation Safe Streets Task Force, Department of Veterans Affairs Office of Inspector General, Social Security Administration Office of Inspector General, and the U.S. Air Force. Assistant U.S. Attorney Zachary Bolitho will represent the United States at trial.

(Indictment )