A federal grand jury indicted a Navy commander and his wife on charges that the officer fraudulently claimed he was injured in the terrorist attack on the Pentagon so he could collect hundreds of thousands of dollars from the victim compensation fund.
Retired Navy Cmdr. Charles E. Coughlin, 49, of Severna Park, pleaded not guilty Monday to federal charges of theft of public money, mail fraud and filing fraudulent claims. His wife, Sabrina, 46, pleaded not guilty to mail fraud.
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Prosecutors claim the Coughlins together devised an elaborate scheme to defraud more than $330,000 from the government-controlled fund.
Coughlin, who had been stationed at the Pentagon on the day of the attack and later received a Purple Heart for his injuries that day, submitted false and altered documents to make his case that he “suffered a partial permanent disability,” charging documents state.
For instance, prosecutors claim, Coughlin lifted a medical opinion from a letter written by his doctor regarding a 1998 neck injury to make it look like the injury occurred on Sept. 11, 2001.
Coughlin also falsely claimed that he was forced to stop playing sports and activities that required “abrupt turning of my head or raising my left arm above my shoulder for any length of time,” prosecutors said.
As proof that Coughlin could no longer perform household duties such as painting or hanging Christmas tree lights, the officer submitted checks showing payments to others to perform the duties for him.
However, prosecutors said bank records show that the checks had been made out for other purposes and had been altered.
Prosecutors also said Coughlin continued playing basketball and lacrosse and ran the New York Marathon in under four hours just two months after the attacks.
The Coughlins were indicted on five counts, including theft of public money and mail fraud.
In September, the federal government filed a civil suit against the Navy veteran, seeking to seize the Coughlins’ $1 million house, a Mercedes-Benz and a minivan because Coughlin had used money from the victims fund to get them. Coughlin spent at least $200,000 to buy the home and to pay off loans on the vehicles, prosecutors said.
