Oregon Department of Justice

Attorney General Ellen F. Rosenblum

Oregon Department of Justice - Attorney General Ellen F. Rosenblum
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April 17, 2009

The Joint Investigation Was Conducted By The Oregon Department Of Justice, Social Security Administration And The Yamhill County District Attorney's Office

Yamhill County District Attorney Brad Berry and Attorney General John Kroger today announced the final two convictions in a scheme to defraud Medicaid and Social Security of nearly a quarter of a million dollars.

"The significant sentences imposed on this matter should cause people to stop and think; fraud against government programs is not a victimless crime, but a crime against all taxpayers" said District Attorney Berry.

"This kind of blatant rip-off will not be tolerated," added Attorney General Kroger.

Richard Vanderschuere Sr.Karen Vanderschuere, Richard A. Vanderschuere, Sr. and his wife, Karen R. Vanderschuere, were sentenced today in Yamhill County Circuit Court to 38 months in prison each. Their son, Richard A. Vanderschuere, Jr., and his grandmother, Elaine Vanderschuere, were convicted of related charges in 2008.

The scheme dates back eight years when Richard Vanderschuere, Sr., faked a disability. Under the fraud scheme, Karen Vanderschuere initially, and Richard Vanderschuere, Jr., in the later years, claimed to be his father's full-time care provider. Elaine Vanderschuere claimed to be the weekend back-up.

Both received payments under the State Medicaid Program that provides funding for in-home care services. Richard Vanderschuere, Sr., received Social Security benefits.

The Oregon Department of Human Services conducted annual in-home assessments, but Richard Vanderschuere, Sr., with the help of his wife, fooled investigators into believing he needed round-the-clock care.

Based on a tip, the Oregon Department of Justice launched an investigation with the help of Office of the Inspector General for Social Security Administration in 2007. Surveillance revealed that Richard Vanderschuere, Sr., was not disabled. In fact, he and his wife ran an early morning delivery service for the Statesman Journal newspaper.

Richard Vanderschuere, Jr., didn't provide for his father, either. He worked full-time at a local casino. The investigation also uncovered that Elaine Vanderschuere, who at the time worked as a fraud investigator for the State Employment Division, never provided the weekend care for Richard Vanderschuere, Sr., and virtually never went to the Vanderschuere home.

The four Vanderschueres received more than $230,000 in SSA disability benefits and Medicaid in-home care payments over eight years.

Richard Vanderschuere Jr. Richard Vanderschuere, Jr., cooperated in the case. Last year, he pleaded guilty to four felony counts of first-degree theft and one felony count of making a false claim for a health care payment. He was sentenced to five years probation and ordered to pay restitution. He must cooperate with investigators. Failure to comply with probation will result in up to 14 months in prison.

Elaine Vanderschuere Elaine Vanderschuere pled guilty to the same charges and was sentenced to 13 months in prison. She left state employment last year and has paid her share of the restitution.

Richard Vanderschuere, Sr. and Karen Vanderschuere pleaded guilty to six felony counts of first-degree theft and one felony count of making a false claim for health care payment. In addition to prison sentences totaling more than three years each, they must pay restitution of $57,585 to the State Medicaid Program and Richard Vanderschuere, Sr., must pay $175,082 to the Social Security Administration.

The case was prosecuted by the Oregon Department of Justice with the assistance of the Yamhill County District Attorney's Office. Senior Assistant Attorney General Rodney Hopkinson prosecuted the case for the Department of Justice.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, and defend the rights of all Oregonians.


Tony Green, (503) 378-6002 tony.green@doj.state.or.us |
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