ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: BOARD DATE: 6 February 2020 DOCKET NUMBER: AR20180005445 APPLICANT REQUESTS: * cancellation of travel debt * repayment of monies paid to debt * personal appearance before the Board APPLICANT’S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Special Power of Attorney * Request for Assistance to Representative * self-authored letter to Representative * letter from Defense Finance and Accounting Service (DFAS) * Retiree Account Statement * Leave and Earning Statements (LES) * letter from DFAS to Representative * Application for Remission or Cancellation of Indebtedness * Travel Voucher * Defense Travel System (DTS) Document History * DTS printout wrong account number * DTS printout correction account number * USAA documents with account number * letter to Representative from Chief of Legislative Liaison * Agent's Investigation Report * Consent and Authorization for Access and Disclosure of Financial Records * Rights Warning Procedure/Waiver Certificate * statement regarding DTS coordinator * news articles regarding travel voucher embezzlement scheme * applicant's sworn statement * emails from trial counsel * memorandum from Budget Analyst regarding debt FACTS: 1. The applicant states, on behalf of the claimant: a. Prior to to the claimant's retirement the Army collected $8,230.20 from his monthly pay in April and May 2013. The amount was collected towards an illegitimate debt of $20,729.07. b. The claimant was a victim of DTS fraud by another Soldier. He was found not to be involved in the financial scheme. The applicant provided paperwork for the Board's consideration to support the claimant's application. c. The total debt to be collected was $20,279.07. Prior to the claimant's retirement, $8,230.20 was collected. The debt collection was stopped via assistance from the Soldier Support Center's Finance Director. The money was never refunded to the claimant. d. Following the claimant's retirement, the collection began again and $12,048.87 was collected from his retirement pay. He was refunded that money back. e. The claimant was told he would need to complete a claim request for the money that was collected from him while on active duty. He is requesting to be refunded the remaining $8,230.20 that was collected from him, while he was on active duty. f. Despite proving the debt collections were unfounded, collection still occurred and no refund was ever presented. Multiple agencies contacted have not assisted the claimant in this matter but have passed the buck along. g. The application was submitted by the claimant's attorney with a Special Power of Attorney provided to the applicant from the claimant. 2. The applicant's service records contain a DD Form 214 (Certificate of Release or Discharge from Active Duty), which shows the applicant retired on 31 January 2014. 3. The applicant's service records are void of documentation regarding the claimant's debt. 4. The applicant provides the following documents for the Board's consideration: a. A Special Power of Attorney from the claimant allowing the applicant to receive all information related to the current debt and repayment under dispute with DFAS. The Special Power of Attorney became null and void on 31 January 2019. b. A request form and letter from the claimant to his Representative, which state: (1) There was a fraudulent DTS travel voucher filed without his knowledge using his name and social security number. He is writing in reference to that voucher. (2) He received a letter of indebtedness on 15 May 2009 from DFAS. The letter stated he owed a repayment in the amount of $20,316.10 for a travel voucher that he never received payment for. The indebtedness was the result of a DTS fraud case which involved an individual of his unit. (3) The Soldier committing the fraud was the DTS manager and he was found to be defrauding the government by erroneously using Soldiers' social security numbers along with their DTS PIN numbers to create fake travel vouchers in their names. Once the vouchers were created the Soldier would switch the bank account number with his own, receive the money, and then switch the account back. (4) The claimant was one of the individuals who had his social security number compromised. He was called in and investigated by CID. They scrubbed his bank account statements and saw he never received any of the money and the same amount of money that was in his name under his social security number was sent to the DTS manager's account. The claimant was cleared by CID and was told this matter would be cleared up. (5) The DTS manager was convicted of fraud and sent to prison for the scheme. He was held liable for all the money he stole under false pretense; however, DFAS erroneously held the claimant responsible for the payment and has been recovering the debt through collections from his retirement pay. He never received any of the money. (6) The claimant has the same bank account he had in 2009 when all of the events transpired. He would be happy to provide the Representative with any and all documentation needed in order to assist him with the case. c. A letter from DFAS, dated 29 July 2014, which states the debt in the amount of $13,213.93 was correct. d. The claimant's retiree account statement dated 21 July 2017, which shows a debt payment of $293.34. e. The claimant's LESs dated April and May 2013, which shows a travel debt payment of $4,115.10 and a total debt of $20,316.10. f. A letter from DFAS to the Representative, dated 5 September 2017 which states the claimant's debt of $12,593.66 was valid. They added interest and administrative fees of $260.27 and applied collections totaling $11,093.16. The claimant's remaining balance was $1,760.77. g. A incomplete, unsigned DA form 2508 (Application for Remission or Cancellation of Indebtedness) and an incomplete and unsigned DA Form 2823 (Sworn Statement). h. A printout from DTS in the claimant's name dated 15 May 2009 which shows the amount paid to the traveler was $20,316.10. i. A printout from DTS showing the DTS Manager created and signed the travel voucher. j. A printout from DTS showing the claimant's name with the wrong bank account information. The bank account shown is from the Bank of America in Richmond, Virginia and in the DTS Manager's name. k. A printout from DTS showing the claimant's name with the correct bank account information with USAA. l. USAA Bank statements in the claimant's name dated 22 May 2009 and 24 June 2009 showing the bank account information and without a deposit in the amount of $20,316.10. m. A letter to the Representative from the Office of the Chief of Legislative Liaison, dated 8 August 2017 which states DFAS has jurisdiction over matters pertaining to military pay. n. A portion of an Agent's Investigation Report regarding the questioning of the claimant for the travel voucher. o. A consent and Authorization for Access and Disclosure of Financial Records signed by the claimant on 9 December 2010 giving CID the authority to look through his financial records. p. A DA Form 2881 (Rights Warning) signed by the claimant on 9 December 2010 waiving his rights and willing to be questioned by CID. q. An excerpt from a Federal Investigation on the DTS manager, which states, in part: * the DTS manager began to discover weaknesses in the DTS system * he began to steal money through DTS in 2009 * he couldn't remember the first fraudulent travel voucher that he worked on * he believed it was not one of his own vouchers but that of another traveler * the claimant gave his Common Access Card (CAC) and PIN to the DTS manager and agreed for the manager to inflate a voucher under the applicant's name * the DTS manager did not recall compensating the claimant. r. News articles regarding the DTS manager's case entitled: * Bragg Soldier accused in travel voucher embezzlement scheme * Fort Bragg Soldier Allegedly Embezzles $750,000 * Ex-Fort Bragg Soldier Sentenced in Fraud Scheme s. A Sworn Statement from the complaint explaining how the DTS manager assisted him with his travel vouchers. t. An email from the Trial Counsel which states: * there was not probable cause to prosecute the claimant for DTS fraud * the claimant was naive to allow the DTS manager access to his CAC Card and PIN * the claimant believed the DTS manager was only going to assist in processing his DTS u. A letter from the Budget Analyst, dated 20 June 2013 supporting the claimant's request for an Army Emergency Fund Loan. 5. See applicable references below. BOARD DISCUSSION: 1. The Board carefully considered the applicant’s request, supporting documents and evidence in the records. The Board considered the applicant’s statement, the Former Service Member’s (FSM) record of service, the DFAS notification of debt, the DTS printouts and bank statements and the collection from the FSM’s retirement pay. The Board considered the circumstances of the FSM’s travel claims, the rights warning, the excerpt from the Federal Investigation and the email from the Trial Counsel. The Board found that the FSM wrongly provided his CAC to the DTS manager, but did not find sufficient evidence to show he was complicit in the fraudulent activity. Based on a preponderance of evidence, the Board determined that the FSM’s travel debt should be cancelled. 2. The applicant's request for a personal appearance hearing was carefully considered. In this case, the evidence of record was sufficient to render a fair and equitable decision. As a result, a personal appearance hearing is not necessary to serve the interest of equity and justice in this case. 3. After reviewing the application and all supporting documents, the Board found the relief was warranted. ? BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 : : : GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING : : : DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: 1. The Board determined the evidence presented is sufficient to warrant a recommendation for partial relief. As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by: - Cancelling the individual’s DTS travel debt, and; - Reimbursing any money collected previously as a result of the travel debt. 2. The Board further determined the evidence presented is insufficient to warrant a portion of the requested relief. As a result, the Board recommends denial of so much of the application that pertains to a personal appearance. I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.? REFERENCES: Army Regulation 600-4 (Remission or Cancellation of Indebtedness) in accordance with the authority of Title 10 USC, section 4837, the Secretary of the Army may remit or cancel a Soldier’s debt to the U.S. Army if such action is in the best interests of the United States. Indebtedness to the U.S. Army that may not be canceled under Title 10 USC, section 4837 when the debt is incurred while not on active duty or in an active status. ABCMR Record of Proceedings (cont) AR20180005445 6