1:52 p.m. July 25, 2012
Knoxville couple charged with conspiracy to steal money from U.S. government agencies

KNOXVILLE -- A Knoxville couple, 59 year old Charles Kaczmarczyk and his wife, Martha Ann Kaczmarczyk, 62, were arrested yesterday on charges contained in an eight-county indictment. The couple allegedly conspired to steal public money from the U.S. Department of Veterans Affairs and the Social Security Administration.

Both Kaczmarczyks appeared yesterday 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. They were ordered by the court to be held overnight. A trial date was set for September 26, 2012.

The indictment alleges that from October 2006 through May 2012, the Kaczmarczyks conspired to steal money from the United States by obtaining more than $1,000 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.

Published July 25, 2012