Few people join the military to become wealthy, but a United States Air Force noncommissioned officer allegedly used his position to fund what the U.S. Department of Justice (DOJ) described as a “lavish lifestyle.” However, crime doesn’t pay, as Staff Sgt. Richard Stefon Ramroop and his spouse, Manuel George Madrid, were indicted by a federal grand jury earlier this month.
The Tucson, AZ, couple is accused of defrauding the United States Department of War (DOW) of millions of dollars, which was used to “curate and maintain a luxurious lifestyle.” The grand jury in the state indicted both men for Conspiracy to Commit Theft of Government Property, Conspiracy to Commit Wire Fraud, Wire Fraud, and Money Laundering.
“The defendants allegedly stole millions in taxpayer dollars from the U.S. Department of War to bankroll a lavish lifestyle, diverting critical resources away from their intended purpose,” explained U.S. Attorney Timothy Courchaine. “Every dollar taken through fraud is a dollar denied to the mission it was meant to support. The U.S. Attorney’s Office and our federal and local law enforcement partners will hold accountable any individual who profits illegally at the expense of the American people.”
The IRS carried out the investigation–Criminal Investigations (IRS-CI), the U.S. Air Force Office of Special Investigations (AFOSI), and members of the Homeland Security Task Force (HSTF). The HSTF includes Homeland Security Investigations (HSI), the FBI, the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the U.S. Marshals Service (USMS), the Counter Narcotics Alliance (CAN), and the Marana, Mesa, and Tucson Police Departments.
The U.S. Attorney’s Office for the District of Arizona, Tucson, is handling the prosecution.
Defrauding the Government
According to the federal grand jury indictment, Ramroop used his position at the pharmacy at Davis-Monthan Air Force Base (AFB), AZ, to defraud the U.S. government by purchasing thousands of medical devices obtained with taxpayer money.
Ramroop and Madrid then sold the items to fund their lifestyle, which included buying luxury vehicles and real estate.
From January 2022 to December 2025, the pair received more than $11 million via wire transfers, Automated Clearing House (ACH) deposits, and credits from companies that were engaged in the resale of medical test strips and devices. The diverted medical devices cost the Pentagon more than $3 million.
Among the items allegedly purchased by Ramroop and Madrid were a 2024 Porsche Cayenne Sport Utility Vehicle valued at $141,443.34, a new BMW i7 Sport Utility Vehicle valued at $195,397.59, and a “million-dollar home” in Tucson. The New York Post cited an online listing for the home, and reported that it “features four bedrooms and 4.5 bathrooms on 4.9 acres with a double stair grand entrance and five-car garage.”
Madrid was listed as the sole owner of the house, which was sold for $1.1 million last May.
Additional vehicles reportedly included a 2025 Ford F-150 Raptor, a 2025 Mini Cooper S Convertible, a 2025 Jeep Wrangler Rubicon, a 2026 BMW X7 Alpina XB7, and a 2026 Cadillac Escalade Sport Platinum.
According to the indictment, the purchases were allegedly made directly from the couple’s personal bank accounts, which had been the same accounts that received the fraud proceeds from the sale of the medical devices. The vehicles and other property were seized by law enforcement during the execution of a search warrant carried out on January 15, 2026.
“This indictment reflects the outcome of a coordinated effort between AFOSI and our federal counterparts,” said Special Agent Richard Kautz, AFOSI Detachment 217 commander. “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.”
Facing Lengthy Prison Sentences
Ramroop and Madrid could face decades in prison. The charge of Conspiracy to Commit Theft of Government Property carries a maximum penalty of up to five years imprisonment, and each conviction for Conspiracy to Commit Wire Fraud and Wire Fraud carries a maximum penalty of up to 20 years imprisonment.
The DOJ also noted that the conviction for Money Laundering carries a maximum penalty of 10 years’ imprisonment.
“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,” said IRS-CI Phoenix Field Office Acting Special Agent in Charge Jarom Gregory. “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. IRS Criminal Investigation will continue to investigate allegations of theft of taxpayer funds and government property, ensuring the integrity of our nation’s tax system.”
