Legal Meets Practical

Federal prosecutors have declined to hold two senior VA executives accountable for allegedly abusing the agency’s relocation program to the tune of a combined $400,000.

Perhaps banking on the chance that everyone would be preoccupied with last-minute holiday shopping, the day before Christmas Eve, the U.S. Attorney’s Office for the District of Columbia announced that it was declining a referral from the VA’s Office of Inspector General (OIG) to prosecute VA executives Diana Rubens (Philadelphia) and Kimberly Graves (St. Paul).

Prosecutors will not take aim against the two senior VA executives the OIG concluded inappropriately misused their offices for personal gain by participating personally and substantially in creating vacancies and volunteering for these positions. Not only did the two women reap a windfall of almost $400,000 in relocation expenses, but the positions came with no pay decrease despite a sharp decline in job responsibilities.

As a slap on the wrist for this activity, in November the VA assigned the women to lower-level positions within the Veterans Benefits Administration that come with a pay cut. The VA recently, however, determined that in administering this “punishment,” its failure to provide all the evidence against them compromised Ruben’s and Grave’s due process rights. As such, it is now “redoing” these already woefully inadequate administrative actions.

By the way – the VA is not seeking recoupment of the $400,000 paid in relocation expenses, on the grounds that the monies were approved by higher-up VA officials. This is despite public outcry, the many scandals plaguing the agency, and the recent House Veteran Committee roasting of Rubens and Graves (hearings during which both women pled the fifth).

According to VA Deputy Secretary Sloan Gibson in a hearing before the House Veterans Affairs Committee, Graves and Rubens were “only guilty of using bad judgment in the relocations.” In his words of infinite wisdom, “in my opinion, the evidence collected by the IG does not support one violation of law. Not one violation of rule. Not even one violation of regulation related to relocation expenses.”

Clearly, Gibson is smarter than the OIG officials who compiled the September report analyzing the relocation scandal (that prompted Under Secretary of Benefits, Alison Hickey, to resign). Why have the OIG when this genius is available to police the VA’s ethics himself?

“Mr. Gibson, I think your statement is pretty damn inconsistent,” Rep. Jeff Miller, the Veterans Affairs chairman fired back during the hearing. “We’re all educated enough to know the definition of accountability but you and the secretary have decided to change that definition.”

Last summer, although the VA itself was keeping her on the payroll, the VA employee involved in the elf on a shelf scandal resigned based on public pressure. Maybe due process protection of government workers make them bulletproof, but in a war against corruption, there are other ways to bring down the bad guys.

To that end, I want to point out that in general, email addresses for VA employees all follow the same format: first name, period, last name, @va.gov. Just sayin.’

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On December 9, the House Committee on Veterans’ Affairs held a hearing to address a recent scandal plaguing the VA – the VA’s failure to hold senior executives accountable for abusing the agency’s relocation program.

While my blogs are never cut-and-paste from other articles, this week I want to pass along Chairman Jeffrey Miller’s comments on the relocation scandal and the VA’s handling of it, as I believe they clearly and eloquently capture what many of us are thinking. They also contain facts I have not seen in other articles on this subject.

On November 20, following the VA’s announcement that the senior executives would not be fired and the VA would not seek recoupment of the $400,000 they allegedly fraudulently obtained from the relocation program, Mr. Miller released this statement:

“For those wondering whether VA is committed to real accountability for corrupt employees, VA leaders answered that question today with a resounding ‘no.’ When presented with the same set of facts regarding Diana Rubens’ and Kimberly Graves’ conduct, VA’s inspector general made criminal referrals to the Department of Justice, while VA leaders went out of their way to allow Rubens and Graves to stay on the department’s payroll and preserve their retirements. Rubens and Graves clearly should have been fired. The fact that VA leaders refused to do so gives me no hope the department will do the right thing and take steps to recover the more than $400,000 taxpayer dollars Rubens and Graves fraudulently obtained. To add insult to taxpayers’ injury, VA rewarded Graves with a bonus of more than $8,000 just this year and department officials don’t even support commonsense legislation that would allow VA to recoup it. Because of the department’s failure to adequately hold employees accountable in this and many other situations, VA is being forced to tolerate corruption, malfeasance and incompetence within its ranks. As a result it remains under the shadow of perpetual scandal. The millions of American veterans who depend on VA and the hundreds of thousands of VA employees who are dedicated professionals deserve better than this broken status quo. But until VA leaders make a commitment to supporting real accountability – something they have refused to do thus far – efforts to reform VA are doomed to fail.”

On December 3, following the VA’s announcement that it botched the disciplinary process for the senior executives by failing to provide them with all the information regarding their punishment during the notice period (requiring the process to start over), Mr. Miller released this statement:

“It seems VA’s incompetence knows no bounds. After VA Dep. Sec. Sloan Gibson repeatedly expressed concerns that our committee’s legitimate oversight efforts could jeopardize these disciplinary proceedings, VA seems to have sabotaged this case all on its own. This is yet another example that proves VA is nowhere near as focused on accountability as it should be. By now, it’s clear to nearly every objective observer that VA’s top officials don’t know how to properly discipline employees. What remains unclear, however, is whether they are even interested in doing so. Yet until VA leaders make a commitment to supporting real accountability – something they have refused to do thus far – efforts to reform the department are doomed to fail. This is an absolutely egregious mistake, and right now it’s incumbent upon VA leaders to do two things: explain to taxpayers, veterans and Congress who will be held accountable for this failure and outline its plan for finally getting serious about accountability at the department.”

Miller is right about everything but one thing: the VA is not incompetent. It is so beyond incompetent, it needs a new word for “incompetent.” (Suggestions welcome!). Know, however, that I am referring to the VA as the bureaucratic monster that it is – many of the folks I work with who are employed by the VA are helpful, hard-working, and genuinely care about helping veterans. It is only a shame that these are the ones who are strangled by red tape.

Access the hearing and a wealth of other information here.

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Despite the U.S. Department of Veterans’ Affairs (“VA”) vigorous campaign against veterans who erroneously receive benefits (whether through wrongdoing or not), two VA officials who allegedly defrauded the agency of $400,000 will walk away with the taxpayer money they took after receiving demotions and unspecified pay cuts as punishment.

Diane Rubens and Kimberly Graves were both accused of manipulating a VA program meant to relocate agency employees who transfer long distances to take jobs within the VA. Rubens fraudulently netted more than $274,000 and Graves more than $129,000, according to a VA Inspector General Report (the “Report”). That same Report recommended that the VA’s Deputy Secretary consult with the Office of General Counsel to determine whether a bill of collection should be issued to recoup the monies paid for relocation expenses.

The VA claims, however, that it cannot recover these funds due to a “lack of legal authority.” As such, it will not pursue recoupment.

In a November 23 letter to VA Secretary Robert McDonald that crackles with rage, Jeff Miller, the Chairman of the House Committee on Veterans’ Affairs, blasted the VA’s failure to hold these employees accountable. As he stated: “[The] VA aggressively pursues the recoupment of overpayment of benefits to veterans, survivors, and other beneficiaries even when the overpayments are due to the VA’s own error. I am sure you can appreciate the lunacy of a policy that is stricter on veteran beneficiaries of earned benefits compared to corrupt government officials who unjustly enrich themselves at taxpayer expense. It must not stand.”

The letter asked the VA to reconsider its legal position, and to issue a response by no later than November 30.  As it appears the VA has not responded, today (December 1), Congressman Miller introduced a House bill that would give the VA Secretary the authority to recoup relocation expenses from employees. Miller’s bill (H.R. 4138) would require the department to provide notice to employees of decisions to recoup relocation expenses, and give employees the opportunity to appeal the recoupment to a third party before having to repay the money.

At the very least, this bill is further public shaming of an agency caught in one scandal after another. The VA won’t respond to a letter? Introduce a bill that gets press and public support.

Perhaps the bill will prompt the VA to reconsider its legal position, but probably not. Such action assumes a semblance of reason, logic, and accountability on behalf of the VA, and those have never been its strong points.

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