Former deputy facing 55 wire fraud counts

SANDPOINT - A former Bonner County Sheriff's marine patrol deputy is facing a slew of federal charges in two states for allegedly faking paraplegia and obtaining more than $1 million in Veterans Administration benefits.

James M. Sebero is charged with 55 counts of wire fraud in Idaho and three counts of making false statements in Washington concerning his disability, according to documents filed in U.S. District Court.

He is currently awaiting sentencing in a third federal case in which he is accused of falsely claiming he was certified by the Federal Aviation Administration to conduct repairs and inspections on aircraft.

Sebero's alleged VA scheme unraveled while he was being prosecuted in the FAA credentials case, said Bud Ellis, an assistant U.S. attorney for the District of Eastern Washington.

"As part of that case it was discovered he was receiving Department of Veterans Affairs benefits," Ellis said on Thursday.

A grand jury indicted Sebero, a 58-year-old Laclede resident, last year on four counts of making false statements to the FAA in 2004 and 2005. He entered into a plea agreement in June which reduced one of the counts to a federal misdemeanor and dismissed the balance of the charges, court records show.

This month, grand juries in Idaho and Washington simultaneously returned indictments on the VA fraud charges. The Idaho indictment alleges he received approximately $1.5 million in VA benefits by falsely stating he suffered from paraplegia and other ailments.

Sebero allegedly told VA officials he was injured in an accident while serving in the U.S. Air Force.

Ellis declined to say how Sebero claimed to have received the injuries.

"I can't cover that because that's not public record yet," Ellis said.

Sebero's federal defender in Spokane, Robert Fischer, did not respond to a call seeking comment.

During the course of a VA compensation and pension examination last year, Sebero falsely stated he was paraplegic, unemployed and had given up his interest in flying since his discharge from the military, the Washington indictment said.

At the time, Sebero was actually a licensed pilot who owned and operated an excavation company and an aircraft maintenance facility. He also worked as a sheriff's marine deputy, charging papers say.

It was not immediately clear how long Sebero served as a deputy. Bonner County Personnel Director Donna Wells did not return a message concerning his employment with the marine division.

The Idaho indictment alleges Sebero made false statements and representations about his health condition between 1976 and 2007. However, the wire fraud charges only cover payments Sebero received between 2003 and 2007.

In a previously published report about the Washington indictment, U.S. Attorney Jim McDevitt said the case is believed to be one of the largest VA fraud cases in the region's history.

Sebero is free while the federal cases are pending.

Sebero is also awaiting trial on a charge of driving under the influence of prescription medication after crashing his handicap-accessible van into a parked car in downtown Sandpoint this winter. He pleaded not guilty to the charge and is scheduled to be tried this fall.