TUCSON, Ariz. -- A staff sergeant and his spouse were indicted on federal charges alleging they carried out a yearslong scheme to defraud the War Department of millions through the theft and resale of medical supplies.
Staff Sgt. Richard Stefon Ramroop and Manuel George Madrid were charged in a 12-count indictment, Feb. 11, by a federal grand jury in Arizona, according to the U.S. Department of Justice.
Prosecutors allege Ramroop used his position in the pharmacy at Davis-Monthan Air Force Base to purchase thousands of medical devices using government funds and, with Madrid, diverted and resold the items for personal gain.
The scheme allegedly ran from Jan. 2022 through Dec. 2025. According to the DOJ, bank accounts controlled by the defendants received more than $11 million in proceeds through wire transfers, deposits and other transactions tied to the resale of medical devices and test strips.
The diverted supplies cost the government more than $3 million, according to the indictment. Prosecutors allege the defendants used the proceeds to purchase real estate and luxury vehicles, including a Tucson home valued at roughly $1 million and high-end vehicles.
Authorities said several vehicles were seized during the execution of a search warrant Jan. 15. The indictment charges the couple with conspiracy to commit theft of government property, conspiracy to commit wire fraud, wire fraud and money laundering.
“This indictment reflects the outcome of a coordinated effort between AFOSI and our federal counterparts,” said Special Agent Richard Kautz, commander of AFOSI Det. 217.
If convicted, the defendants face up to five years in prison for conspiracy to commit theft of government property, up to 20 years for wire fraud-related charges and up to 10 years for money laundering.
“Fraud of this level is not just a financial crime, it undermines public trust, diverts resources, and threatens the integrity of our force,” Kautz said. “Every dollar lost to fraud is a dollar taken away from the security of our nation.”
The case was investigated by the Air Force Office of Special Investigations, IRS Criminal Investigation and members of the Homeland Security Task Force, including federal and local law enforcement agencies. The U.S. Attorney’s Office for the District of Arizona is prosecuting the case.
Editor’s note: An indictment is a formal accusation, and the defendants are presumed innocent unless proven guilty in a court of law.