U.S. Department of Veterans Affairs

(U.S. Department of Veterans Affairs)

OCEAN VIEW, Del. - An Ocean View woman has pleaded guilty to making false statements to the U.S. Government during an investigation into her accessing Veterans Affairs benefits meant for her mother.

According to court records obtained by WBOC, in May of 2025, the U.S. Department of Veterans Affairs Office of the Inspector General contacted Nancy Lucy, 73, in regards to her receipt of Dependency and Indemnity Compensation Benefits intended for Lucy’s mother. According to prosecutors, Lucy told investigators that she had closed the bank account in which the VA had deposited the funds.

The ensuing investigation, according to prosecutors, revealed Lucy had not closed the account and had instead accessed it on multiple occasions. Federal officials alleged Lucy had transferred funds from the account and used them to pay her personal credit card accounts. 

In all, prosecutors alleged Lucy had obtained $152,927.96 without proof of entitlement from the VA.

On Tuesday, Jan. 20, 2026, Lucy pleaded guilty to one count of knowingly making a false statement to a department or agency of the United States in U.S. District Court for the District of Delaware. The charge carries a maximum of five years imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense.

As part of the plea deal taken on Tuesday, Lucy has agreed to pay the over-$150,000 in restitution, according to court documents.

Lucy’s sentencing is currently scheduled for June 9, 2026.