OIG: Office of Inspector General
   Current Section

Investigation Report


U.S. Department of Justice
Donald J. DeGabrielle, Jr.
United States Attorney
Southern District of Texas

August 13, 2008

P.O. Box 61129
Houston, TX 77208

Telephone 713-567-9000
Public Inquiry Line - 713-567-9535
Fax 713-718-3300
Website: http://www.usdoj.gov/usao/txs

Former Vocational Rehabilitation Provider Pleads Guilty to Fraudulent Claims Against the Government

(HOUSTON, Texas) — Former vocational rehabilitation provider James Earl Dunn Jr., 38, of Pearland, Texas, has pleaded guilty to one count of submitting fraudulent claims against the government, United States Attorney Don DeGabrielle announced today. Dunn was the owner and operator of Rehab Specialist Inc., which is no longer in operation.

Dunn received contracts from the Texas Department of Assistive and Rehabilitative Services (DARS), formerly known as the Texas Rehabilitation Commission, from funds awarded by the U.S. Department of Education to provide vocational rehabilitation training to individuals with mental and physical disabilities. He was indicted in May 2007 accused of submitting fraudulent claims against the government by fraudulently by claiming he was providing employment training and coaching to clients with disabilities when the clients were not receiving such training. Dunn allegedly obtained federal vocational rehabilitation funds in excess of $300,000, through DARS between 2002-2004.

Dunn admitted his guilt at a hearing before United States District Judge Lee H. Rosenthal on Aug. 12, 2008. He faces a maximum penalty of five years imprisonment and a fine of up to $250,000 at his sentencing scheduled for Dec. 9, 2008. Dunn remains free on bond pending his sentencing hearing.

This investigation leading to Dunn's indictment was conducted by special agents with the U.S. Department of Education - Office of Inspector General and the DARS Investigations Unit. This case is being prosecuted by Assistant United States Attorney Quincy L. Ollison.

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Last Modified: 08/22/2008