Nigerian CEO accused of defrauding US veterans of more than $7m

Nigerian CEO accused of defrauding US veterans of more than $7m

Cashmir Chinedu Luke, a Nigerian-born chief executive of a California home healthcare company, has been arrested in the United States for allegedly running a years long fraud scheme that siphoned millions of dollars from a programme designed to support military veterans.

Luke, believed to be 66, was picked up at San Francisco International Airport as he tried to board a flight to Nigeria.  According to statement, the US attorney’s office said he is accused of masterminding an operation that billed the Department of Veterans Affairs for care that was never provided, including services listed for veterans who were already dead.

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US attorney Eric Grant described the case as a grave breach of public trust. “Money intended for men and women who served this country was instead funnelled into a scheme built on lies,” he said. “The allegations outline a deliberate effort to cheat a system created to protect some of our most vulnerable citizens.”

Court documents say Luke ran Four Corners Health LLC, a Fresno based home care company that worked under the Veterans Community Care Programme. Between December 2019 and July 2024, the firm submitted around ten thousand reimbursement claims. Prosecutors say many were fabricated.

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Investigators allege that Four Corners billed for days when no caregiver was present, claimed hours never worked, submitted repeated duplicate claims and even filed for services weeks after the veterans involved had died. “This was not an accounting error,” a federal investigator familiar with the case said. “It was a patterned, calculated process to extract as much money as possible.”

Authorities say the scheme cost the Department of Veterans Affairs more than seven million dollars. They allege that Luke benefitted directly, spending the funds on personal expenses and transferring money across several bank accounts in Asia and Africa. According to the complaint, he also misled the VA’s third party benefits administrator when it attempted to recover payments, enabling the operation to continue.

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The Office of Inspector General for the Department of Veterans Affairs is leading the investigation, while assistant US attorney Calvin Lee is prosecuting the case. “Our duty is to follow the evidence wherever it leads,” Lee said. “The complaint reflects substantial investigative work, but the defendant remains entitled to the presumption of innocence.”

If convicted, Luke could face up to 10 years in prison and a fine of  $250,000. The final sentence would be determined by a federal judge under established sentencing guidelines.

Prosecutors stressed that the charges are allegations and Luke remains presumed innocent unless proven guilty beyond a reasonable doubt.

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.

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