In a landmark case, Derek Robert Hamm, a 39-year-old resident of Tyler, Texas, has been sentenced to more than 11 years in federal prison for a series of offenses, including wire fraud, money laundering, and violating the Stolen Valor Act, announced U.S. Attorney Damien M. Diggs today.
Hamm pleaded guilty to a range of charges, including using a fraudulent military discharge certificate, and being a felon in possession of firearms and ammunition. The sentencing, which took place on December 7, 2023, was handed down by U.S. District Judge J. Campbell Barker. Notably, Hamm's sentence marks the largest ever imposed in connection with a fraud scheme involving the Stolen Valor Act.
The Stolen Valor Act of 2013 criminalizes fraudulent claims related to military service, including the wearing of medals and making false statements to gain financial or other benefits. As part of his sentence, Hamm agreed to pay restitution of at least $2.3 million and forfeit ill-gotten gains, including jewelry, vehicles, and cash proceeds amounting to $1,675,000.
Court documents revealed that Hamm concocted a false identity, portraying himself as a decorated war hero and a member of the Army Special Forces with multiple tours of duty in Iraq, Afghanistan, and other countries. He falsely claimed to have received prestigious military awards, including the Purple Heart, Bronze Star, Silver Star, and Distinguished Service Cross. Additionally, Hamm falsely asserted a relation to billionaire oilman Harold Hamm, using this fabricated connection to gain trust and attract investors.
In reality, Hamm's persona was a façade, and he diverted investors' funds to finance a lavish lifestyle for himself and his family. Despite failed investments, he continued to deceive investors and solicit more funds. The court determined that Hamm had violated the Stolen Valor Act, which protects the integrity of military service and honors genuine acts of bravery.
U.S. Attorney Damien M. Diggs emphasized the significance of the Stolen Valor Act in preserving the honor and sacrifices of veterans. FBI Special Agent in Charge Chad Yarbrough commended the collaborative effort with the U.S. Attorney's Office, stating, "Mr. Hamm could not stop breaking the law."
Hamm also pleaded guilty to being a felon in possession of firearms and ammunition, a violation of federal law due to a 2020 state felony conviction for theft of property in Smith County. Court documents revealed Hamm's possession of multiple firearms and ammunition, contributing to his intimidation of investors.
The investigation uncovered Hamm's previous use of stolen valor in 2020 when he presented falsified military records to a Smith County District Court for a more lenient sentence. He had also used these false documents to obtain Bronze Star license plates from the Texas Department of Motor Vehicles.
Following Hamm's indictment in January 2022, assets worth over $350,000 were seized and subsequently sold through the Justice Department's asset forfeiture procedures. The proceeds were applied towards the restitution judgment, given Hamm's lack of other assets.
The case was prosecuted as part of the Project Safe Neighborhoods Initiative, aimed at reducing gun and gang violence in the Eastern District of Texas. The investigation involved the collaboration of various law enforcement agencies, including the FBI's Tyler Field Office, the Tyler Police Department, the Smith County Sheriff’s Office, the Phoenix Arizona Police Department, Smith County Adult Probation, the Texas Railroad Commission-Enforcement Division, Department of Veteran’s Affairs-Office of Inspector General, Texas Comptroller of Public Accounts-Criminal Investigation Division, and the United States Army Special Operations Command.
Individuals who believe they may have been victims of Derek Robert Hamm are urged to contact the Federal Bureau of Investigation at 903-594-3503. Hamm is also known by aliases D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm, and RD Hamm.
