The VA doesn't have 'legal authority' to require executives to return $400K they received in job transfer scam... wait, what???

2015-11-24T22:01:57-05:00

Ya'll believe this???

WASHINGTON -- The Department of Veterans Affairs will not try to recoup more than $400,000 from two senior VA executives who manipulated the hiring system to get their jobs of choice and received hundreds of thousands in extra money to relocate.

The agency has remained silent on questions about its decision to demote and transfer but not fire executives Diana Rubens and Kimberly Graves, and whether it would collect repayment of those relocation benefits. The original statement from the VA announcing the decision said the women had the right to appeal their reassignments.

But Rep. Jeff Miller, R-Fla., who chairs the House Veterans Affairs Committee, said the VA’s top lawyer has determined that the agency does not have the legal authority to recoup the money, even after acknowledging that the women had abused their offices.

“I am flabbergasted,” Miller said in a letter to VA Secretary Bob McDonald, released Tuesday. “How can it be that the law prohibits recouping benefits paid to, or on behalf of, employees who only received those benefits because they abused their positions of authority? To put it mildly, VA’s decision defies common sense.”

On Sept. 28, 2015, the VA Inspector General’s office issued a report finding that Rubens and Graves had “inappropriately used their positions of authority for personal and financial benefit” by arranging the transfer of subordinates whose jobs they wanted and then volunteering to fill the vacancies.

Rubens became director of Veterans Benefits Administration’s Philadelphia and Wilmington VA regional offices and received $274,019.12 for relocation expenses under a program that was meant to offer incentives for hard-to-fill posts. Graves became director of the VBA’s St. Paul, Minn., regional office, with relocation pay of $129,467.56. The relocation incentives program has since been indefinitely put on hold.

Both women maintained their senior executive salaries after transferring to these less-demanding jobs. Their predecessors also received relocation costs totaling $60,000, the report found. Rubens received an $8,000 bonus last year, which she was not asked to repay.

The report recommended that the VA deputy secretary consult with the VA’s Office of General Counsel to determine whether Rubens and Graves should have to repay their relocation expenses.

Asked about the information in Miller’s letter, VA spokesman James Hutton responded by email, saying only, “I have nothing new for you on this.”

When asked about the determination by the Office of General Counsel and whether criminal charges would be referred against Rubens and Graves, the Office of Inspector General said, “We do not have information that is responsive to your questions,” and deferred questions of possible prosecution to the U.S. Attorney’s Office. Neither that office nor the Department of Justice immediately responded to a query on the issue.

McDonald’s press secretary did not respond to calls and emails. A call to McDonald’s personal cell phone went to voicemail, and no one responded.

Miller said he learned of the general counsel’s determination from McDonald’s staff. He called on the VA secretary to reconsider the agency’s legal position and to present to his committee a “reasoned, legal basis for not pursuing recoupment of these taxpayer funds.”

“I am appalled by the lack of seriousness with which the VA handled the matter,” he added in the letter, noting that the VA aggressively pursues overpayment of benefits made to veterans, survivors and other beneficiaries. “I am sure you appreciate the lunacy of a policy that is stricter on veteran beneficiaries of earned benefits as compared to corrupt government employees who unjustly enrich themselves at the taxpayer expense.”

In a separate letter to the VA secretary dated Monday, Sen. Thomas Carper, D-Del., questioned what safeguards the VA has in place to prevent this kind of manipulation of the hiring process and to identify, prevent and recoup fraudulent relocation overpayments.

“We need to remain vigilant,” he wrote.

“This move is an insult to veterans and taxpayers, who are left footing the bill,” Sen. Johnny Isakson, R-Ga., who chairs the Senate Committee on Veterans Affairs, said in a statement Tuesday.

Curtis Kalin, spokesman for the nonprofit Citizens Against Government Waste, said the VA’s systemic problems “not only hurt taxpayers, but cost some veterans their lives.”

“These latest findings by the IG are worrisome and again reveal the breadth and depth of the department’s mismanagement,” Kalin said. “Reform of the VA is needed now more than ever.”

Rubens was reassigned to the Houston Regional Benefits Office and Graves was reassigned to Phoenix. Both will now serve as assistant directors, the VA said. The agency said the women are entitled to seek relocations costs for these new assignments that stemmed from their demotions.

VA doesn't have 'legal authority' to require executives to return $400K they received in job...

The Department of Veterans Affairs will not try to recoup more than $400,000 from two senior VA executives who manipulated the hiring system to get their jobs of choice and received hundreds of thousands in extra money to relocate.

Response by PVT Robert Gresham made Nov 24 at 2015 11:20 PM

2015-11-24T23:20:48-05:00

MSgt Curtis Ellis, they scammed over $100,000 each, and they are still eligible to get more relocation money when they are demoted? Damn, I am going back into the workforce !!

Do you realize that I did not get benefits for 3 months because the VA mistakenly thought that I had received a Separation Bonus over 12 years prior? And these people don't even have to pay it back as it stands now. It just goes to show you how screwed up the VA is at it's core. Unbelievable !!

Response by SSgt Alex Robinson made Nov 24 at 2015 11:23 PM

2015-11-24T23:23:46-05:00

Hey need to do some prison time.

Response by LTC Private RallyPoint Member made Nov 24 at 2015 11:31 PM

2015-11-24T23:31:34-05:00

Unfreaking believable, what happened to honesty.

If the leadership is involved in such scams, is there any wonder there are issues in the VA?

Thanks for posting MSgt Curtis Ellis

Response by Capt Richard I P. made Nov 25 at 2015 12:11 AM

2015-11-25T00:11:16-05:00

LOL

Response by LTC Christopher Sands made Nov 25 at 2015 12:38 AM

2015-11-25T00:38:18-05:00

DISGUSTING!!! They should be FIRED! The money given in bonuses to the workers and managers who committed FRAUD on American VETERANS should be taken back and those people fired also!

Response by Cpl Tou Lee Yang made Nov 25 at 2015 12:54 AM

2015-11-25T00:54:58-05:00

I need to get this type of job. If only VA would hire minority.

Response by SPC Michael Crosby made Nov 25 at 2015 3:31 AM

2015-11-25T03:31:30-05:00

Sure they do. It's called filing a civil fraud law suit, getting an emergency injunction to freeze assets, and then when the government wins the case, seize their bank accounts and attach liens to all of their real and personal property. A referral to DOJ for criminal prosecution is obviously not out of the question, either. They could seek restitution on the criminal side.

Response by SSG Erick Diaz made Nov 25 at 2015 3:48 AM

2015-11-25T03:48:37-05:00

Then the DOH should get in and order it. Period.

Response by SSG Erick Diaz made Nov 25 at 2015 3:49 AM

2015-11-25T03:49:21-05:00

DOJ

Response by PO2 Kayla Modschiedler made Nov 25 at 2015 8:57 AM

2015-11-25T08:57:53-05:00

These knuckleheads make me want to puke. So this summer I went to school and didn't get a dime of my stipend until October 8. By that Time they garnished all but $100 for dropping an algebra class. So I had $100 to live on for the month of September. Luckily, I live in an awesome county which gave me $350 in Kroger gift cards, paid my utility bills and also gave me $20 in Speedway gas cards. I had to get ahold of the VFW to get some help (thank God for the VFW). Then someone from the VA called me to find out what I wanted , haha I don't know maybe my stipend money? They're just clu

Response by PO3 Private RallyPoint Member made Nov 25 at 2015 9:57 AM

2015-11-25T09:57:45-05:00

huge fine and prison time. :)

Response by Sgt Spencer Sikder made Nov 25 at 2015 10:06 AM

2015-11-25T10:06:42-05:00

WTF!!!! VA's own Douglas Factors, a case in which VA lost many years ago, clearly states they could fire these thieves just on the negative publicity they caused. Disgusting!!!

Response by CAPT Kevin B. made Nov 25 at 2015 8:44 PM

2015-11-25T20:44:05-05:00

Hmm. The program and disbursements were an administrative procedure that was taken advantage of. It does make sense that, absent regulation like recouping improper travel claim stuff, that VA is saying they don't have the administrative tool to recover. So then it's a matter of seeing if a fiscal regulation or law was broken outside of the relocation incentive program. That would likely be tough too. What I don't get is the article is silent on all the alarms that should have been going off at the time the action was being implemented. That tells me the VA IG and it's Hotline program is impotent. Unfortunately this stuff goes on all the time including at lower levels. Conferences that are held at max M&IE resorts when the underutilized whatever at half rate is bypassed because they don't throw breakfast and evening liquor in. So I'd go to my Super 8 with a bag of Taco Bell and hit a movie or any sporting event in town because I never felt the money I was spending was mine. It got annoying when I was called a cheapskate for it.

Response by MAJ Ken Landgren made Nov 25 at 2015 9:19 PM

2015-11-25T21:19:37-05:00

These two evil women are inconvenienced for having to learn about their wrong doings, but don't have to feel contrite because they wont be fired.

Response by MAJ Ken Landgren made May 2 at 2019 7:00 PM

2019-05-02T19:00:17-04:00

The VA circles the wagons sometimes to protect itself.