LOUISVILLE, Ky. (WDRB) -- The founder of a Louisville military veteran's nonprofit has been indicted by a federal grand jury.

Jeremy Harrell is the CEO of Veteran's Club, an organization devoted to providing assistance to U.S. military veterans. Harrell has been accused of improperly taking unemployment benefits from Veterans Affairs. 

An indictment unsealed on Wednesday claims Harrell wrongfully collected $100,000 in benefits.

To be eligible for Individual Unemployability, a veteran must be unable to maintain substantial gainful employment because of service-connected disabilities. Harrell served in the U.S. Army from 2003-04, and later the U.S. Army Reserve. 

He began receiving benefits in 2011, and agreed to inform Veterans Affairs if he returned to work, according to the indictment. Harrell founded the Veteran's Club in 2019 to help veterans with housing assistance, vocational training, healing and more. 

The indictment claims Harrell took affirmative steps to conceal his true work activity that weren't consistent with his true work activities and public appearances. It claims he was capable of maintaining substantial gainful employment, as shown by his work with Veteran's Club.

Harrell served as a volunteer CEO who didn't receive a salary or compensation for his work. The indictment states Harrell would work an excess of 40 hours a week, but when asked how frequently he participated in veterans' activities, he responded "it is not a regular thing, just occasionally."  

WDRB News asked Harrell for comment, but he declined.

When asked about the allegations, one former Veteran's Club member said, "Absolute shock. I am mostly disgusted by the accusation he willfully defrauded the VA. Understanding how the VA system works, I am not surprised they would take this action."

"I don't think he should step down," one former board member wrote. "I firmly believe many veterans are alive today because of VC."

Other former members disagreed slightly, stating someone else in charge would be what is best for the organization and its continued mission moving forward.

When asked about their hopes for the future, one former member wrote, "My prayer is that everyone involved and the staff at Veteran's Club find peace throughout this process. My prayer is also that regardless of the outcome, the organization will continue to grow and its services will continue to touch the lives of many."

Harrell is scheduled to appear in court on Nov. 1. If convicted, Harrell faces up to 10 years in prison and a maximum $250,000 fine.

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