Imagine serving your country, retiring overseas, and depending on government support for healthcare—only to find out someone’s been exploiting that very system meant to help you.
That’s exactly what U.S. officials uncovered in Panama, where a network of doctors and pharmacies allegedly orchestrated a massive fraud scheme targeting the Department of Veterans Affairs’ Foreign Medical Program (FMP).
A Surgeon at the Center of It All
At the heart of the case is Dr. Rolando Chin, a Panamanian surgeon who recently entered a criminal plea as part of an international investigation led by U.S. and Panamanian authorities.
Dr. Chin admitted to participating in a scheme that siphoned funds from the VA through bogus medical claims—submitting bills for services never actually performed and medications never dispensed.
His plea is a breakthrough moment in a larger investigation that has already identified nearly 40 suspects, including other doctors, pharmacies, a hospital, and multiple companies in Panama.
How the Scam Was Exposed
The fraud first came to light thanks to a joint effort by the U.S. Department of Justice, the Department of State, and the VA itself.
They found a disturbing pattern: inflated or completely fabricated medical claims being submitted to the FMP, which is designed to help veterans living overseas get essential care.
This discovery prompted the U.S. to file a formal complaint in Panama back in December 2022.
From there, Panamanian prosecutors launched their own criminal probe, which led to the formal indictment of dozens of individuals by mid-2023.
A Major Win for U.S. Taxpayers
Dr. Chin’s guilty plea earlier this year was not just symbolic—it came with a restitution agreement with the United States, helping to recover some of the misused funds.
More importantly, this move signals that both countries are serious about holding those involved accountable.
“This is about protecting American taxpayers and veterans,” said Yaakov Roth, Acting Assistant Attorney General of the DOJ’s Civil Division.
“We’re not just recouping stolen money—we’re preventing more from being lost in the future.”
Big Savings and Tougher Oversight
Following the initial filing, the VA took swift action by suspending all the implicated individuals and organizations from working with the FMP.
That suspension officially kicked in around August 2024 and has already had a massive financial impact.
The VA now expects to spend 50% less on its Panama program in fiscal year 2025—a projected savings of nearly $25 million.
Who’s Behind the Legal Effort?
The coordinated operation is being led by the Department of Justice’s Office of Foreign Litigation, with major support from the VA Office of Inspector General and the U.S. Department of State.
Christine Brennan and Kiesha Minyard are overseeing the case from the DOJ side, and Panamanian authorities continue to push forward with the rest of the prosecutions.
More Arrests Could Be Coming
While Dr. Chin’s plea marks a key milestone, this story is far from over.
Investigations are ongoing, and more individuals named in the U.S. complaint are expected to face charges soon.
For veterans abroad—and American taxpayers back home—this case is a reminder that fraud can happen anywhere.
But with strong cooperation between countries, it’s clear that justice can reach across borders too.