Healthcare Worker at Detention Facilities Pleads Guilty to Fraud

SAN DIEGO - Neery Velazquez admitted in federal court today that while he was a healthcare worker at U.S. Customs and Border Protection detention facilities in San Diego County, he submitted almost $250,000 in false travel claims for reimbursement.

Velazquez, who worked for a government contractor, pleaded guilty to a single count of False Claim. He is scheduled to be sentenced before District Judge Cathy Ann Bencivengo on July 14, 2026.

Contractor employees are eligible to request reimbursement of their lodging, meal and incidental expenses when they are on "Temporary Duty" (TDY) travel more than 50 miles from the employee's permanent home.

The defendant was hired in January 2020 to work as a "traveler" performing contracted services for Customs and Border Protection (CBP) away from his permanent home in Las Vegas. In 2021, however, the defendant moved his permanent home to San Diego, making him ineligible for reimbursement for travel expenses.

According to his plea agreement, between 2021 and 2024, Velazquez submitted approximately 35 monthly travel claims to his employer and falsely attested that he was entitled to reimbursement of his lodging, meal, and incidental expenses because he was on TDY travel.

Velazquez also admitted he submitted forged documents to inflate and support his purported monthly expenses. This included a forged month-to-month lease agreement with a fake landlord, along with a forged rental receipt signed by the fake landlord, to make it appear as if he was paying thousands of dollars more for rent of a supposed temporary home each month than he was actually paying for his permanent residence.

In total, Velazquez submitted approximately $244,019.48 in false travel claims for reimbursement. CBP reimbursed approximately $181,082.85 of that amount before it discovered discrepancies in the submitted travel claims.

This case stemmed from an investigation led by the U.S. Department of Homeland Security, Office of Inspector General and Customs and Border Protection, Office of Professional Responsibility, with assistance from CBP's Office of Finance, Investment Analysis Office. The investigation revealed that nearly a third of the contractor's 100 employees on TDY status in the San Diego area were committing some form of travel benefits fraud. Investigators determined that such employees had submitted more than $1.59 million in false travel claims to their employer for reimbursement, which CBP later reimbursed. CBP offset the loss by withholding funds payable to the contractor based on findings of false claims.

The investigation and subsequent scrutiny also resulted in a reduction in travel claims submitted by the contractor to CBP. Notably, the submitted claims decreased from an average of $3.9 million per month in calendar year 2023 to $3.1 million per month in calendar year 2024, resulting in a cost avoidance of approximately $9.6 million.

"Every dollar stolen through fraudulent travel claims is a dollar taken directly from the pockets of hardworking taxpayers," said U.S. Attorney Adam Gordon. "We stand committed to preserving a government that stewards the public's money wisely and protects it from wrongdoers."

"This guilty plea sends a strong message that those who attempt to defraud the government and American taxpayer will be identified and held accountable for their actions," said Joseph V. Cuffari, Inspector General of the U.S. Department of Homeland Security. "We appreciate the coordination with our law enforcement partners in their actions to exact justice for these crimes."

"This plea agreement highlights CBP OPR's ongoing commitment to accountability and integrity, said Jeffrey Egerton, Acting Executive Director of the Investigative Operations Directorate, U.S. Customs and Border Protection, Office of Professional Responsibility. "Today's resolution reaffirms our duty to protect taxpayers and ensure those who misuse government funds are held accountable."

This case is being prosecuted by Assistant U.S. Attorney Patrick C. Swan.

DEFENDANT Case Number 26-cr-1544-CAB

Neery Velazquez Age: 31 San Diego, CA

SUMMARY OF CHARGES

False Claim - Title 18, U.S.C., Section 287

Aiding and Abetting, Title 18, U.S.C. Section 2

Maximum penalties: Five years in prison and fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater

INVESTIGATING AGENCIES

Department of Homeland Security, Office of Inspector General

Customs and Border Protection, Office of Professional Responsibility

Customs and Border Protection, Office of Finance