Arizona Airman, Spouse Accused of Multimillion-Dollar Defense Department Fraud Scheme

Arizona Airman, Spouse Accused of Multimillion-Dollar Defense Department Fraud Scheme

Federal prosecutors allege the couple siphoned off medical supplies from a Tucson air base and funneled more than $11 million through resale operations.

An active-duty airman stationed in Southern Arizona and his spouse are facing a slate of federal charges after authorities say they orchestrated a yearslong scheme that diverted millions of dollars from the U.S. military.

According to the U.S. Attorney’s Office for the District of Arizona, 35-year-old U.S. Air Force Staff Sgt. Richard Stefon Ramroop and 32-year-old Manuel George Madrid were indicted earlier this month on 12 felony counts. The charges include conspiracy to steal government property, conspiracy to commit wire fraud, wire fraud and money laundering.

Prosecutors allege that between early 2022 and late 2025, Ramroop leveraged his role at the pharmacy at Davis-Monthan Air Force Base to order large quantities of medical devices using federal funds. Investigators contend those items were then removed from the base and resold, with Madrid allegedly assisting in the resale operation.

Court filings claim the couple’s bank accounts received more than $11 million during that period through wire transfers, ACH deposits and credits tied to companies involved in the secondary market for medical testing supplies. Authorities estimate the Defense Department’s losses at more than $3 million in diverted equipment.

Federal officials say the alleged proceeds funded an upscale lifestyle. Among the purchases detailed in the indictment: a Tucson home valued at roughly $1 million, a 2024 Porsche Cayenne SUV and a BMW i7. Law enforcement agents seized the vehicles in January as part of the investigation.

The case is being investigated by multiple agencies, including the Internal Revenue Service Criminal Investigation and the Air Force Office of Special Investigations, which described the matter as a coordinated federal effort.

If convicted, Ramroop and Madrid could face significant prison time. A conspiracy to steal government property carries a potential sentence of up to five years, while wire fraud-related convictions can bring penalties of up to 20 years per count. Money laundering charges carry a maximum of 10 years for each conviction.

The indictment marks the latest high-profile fraud case in Arizona involving public funds, underscoring federal authorities’ continued focus on financial crimes that target taxpayer resources.

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