Lancaster Woman’s Shocking Betrayal: How a $1.4 Million Fraud Scheme Preyed on Veterans’ Trust

Court News

PHILADELPHIA, PA — In a striking admission of guilt, Jessika L. Hiepler, a 46-year-old resident of Lancaster, Pennsylvania, confessed to orchestrating a fraudulent scheme that siphoned $1.425 million from two nonprofit veterans organizations. The plea was entered Tuesday before United States District Judge Jeffrey L. Schmehl, marking a significant turn in a case that spotlights the vulnerability of charitable institutions to insider fraud.

For nearly 15 years, Hiepler held pivotal roles within the American Legion Post 34, including those of manager, treasurer, and financial officer. In 2019, she extended an offer to assist another veterans organization, American Veterans Post 19, purportedly to alleviate its financial distress. However, this altruistic gesture soon unraveled into an elaborate ruse designed to exploit both entities for personal gain.

Hiepler leveraged her position to misappropriate control over AMVETS Post 19’s financial operations and its prime commercial property. She falsely assured AMVETS of an interest-free bailout while simultaneously embezzling funds from her position at Legion Post 34 to finance her duplicity. Once at the helm of AMVETS Post 19’s finances, she continued her deception, diverting funds for her own benefit and meticulously covering her tracks by altering and destroying pertinent financial records.

A series of incriminating communications revealed the depth of Hiepler’s disdain for the organizations she victimized. Her messages, replete with derogatory language, highlighted her intent to sell AMVETS Post 19’s property, which she acquired at a significantly undervalued price of $500,000 under false pretenses. Her real estate venture later sold the property for $1.95 million, resulting in a substantial profit.

In Hiepler’s own words:

  • “[W]e will make our money and they [AMVETS Post 19] can kiss our a[**]”
  • “I am ready to get rid of these motherf[*****]s. . . . I can’t wait for sh[**] to be ours”
  • “I can’t wait to see their face when we hand them their eviction notice”
  • “Honestly all I want is my money. That’s it. I could care f[***]ing less about any of them.”
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During the proceedings, U.S. Attorney Jacqueline C. Romero condemned Hiepler’s actions, stating, “Jessika Hiepler’s contempt for her victims, veterans who served this country, is palpable — and despicable. Not only did she defraud these organizations, she did so gleefully, hurling insults and expletives behind the scenes.”

Hiepler now faces the prospect of up to 40 years in prison, coupled with three years of supervised release and a fine of $500,000. Additionally, she has agreed to a forfeiture money judgment amounting to $1,425,847.24 as part of her plea agreement.

The case underwent a thorough investigation by the FBI, with assistance from the Lancaster City Bureau of Police, and is being prosecuted by Assistant United States Attorneys Samuel S. Dalke and Andrew Jenemann.

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