Arizona airman, spouse charged with defrauding millions from Department of Defense

PHOENIX — An Arizona airman and his spouse were recently charged in connection with a yearslong scheme to defraud the U.S. Department of Defense of millions of dollars, officials announced Thursday.

U.S. Air Force Staff Sgt. Richard Stefon Ramroop, 35, and 32-year-old Manuel George Madrid were indicted during a Feb. 11 hearing on 12 counts, including conspiracy to commit theft of government property, conspiracy to commit wire fraud, wire fraud and money laundering, according to the U.S. Attorney’s Office for the District of Arizona.

“The defendants allegedly stole millions in taxpayer dollars from the U.S. Department of … (Defense) to bankroll a lavish lifestyle, diverting critical resources away from their intended purpose,” U.S. Attorney Timothy Courchaine said in an announcement. “Every dollar taken through fraud is a dollar denied to the mission it was meant to support.”

Why was the couple charged with defrauding the Department of Defense?

It is alleged that between January 2022 and around December 2025, Ramroop used his position at the Davis-Monthan Air Force Base pharmacy to purchase thousands of medical devices using taxpayer dollars.

Prosecutors said that Ramroop then stole and resold those devices with Madrid.

According to court documents, during that time the couple’s bank accounts fraudulently received more than $11 million through wire transfers, Automated Clearing House (ACH) deposits and credit from companies that were involved in the resale of medical test strips and devices.

The diverted medical devices cost the Department of Defense more than $3 million, prosecutors said.

“Military servicemembers hold a unique position in our society, where they are entrusted with large amounts of taxpayer dollars to ensure the defense of our nation,” Jarom Gregory, IRS-CI Phoenix Field Office acting special agent in charge, said. “When a servicemember abuses their position for personal gain, it erodes trust in the tax system and harms the very citizens they have sworn an oath to protect.”

The indictment also alleged that Ramroop and Madrid used the fraudulently obtained funds in their bank accounts to buy luxury vehicles and real estate.

The purchases reportedly included a million-dollar Tucson home in February 2024, a 2024 Porsche Cayenne Sport Utility Vehicle and new BMW i7 Sport Utility Vehicle.

Prosecutors said the vehicles were seized by law enforcement on Jan. 15.

The maximum penalty for a conspiracy to commit theft of government property conviction is up to five years in prison. Meanwhile, each conviction for conspiracy to commit wire fraud and wire fraud has a maximum penalty of up to 20 years in prison.

In addition, each money laundering conviction carries a maximum penalty of up to 10 years in prison.

“This indictment reflects the outcome of a coordinated effort between the Air Force Office of Special Investigations (AFOSI) and our federal counterparts,” Special Agent Richard Kautz, AFOSI Detachment 217 Commander, said. “Fraud of this level is not just a financial crime, it undermines public trust, diverts resources and threatens the integrity of our force. Every dollar lost to fraud is a dollar taken away from the security of our nation.”

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