VA Execs Demoted

Benjamin KrauseDepartment of Veterans Affairs acknowledged Friday that it finally demoted VA execs Diana Rubens and Kimberly Graves for manipulating pay systems for personal gain, but lawmakers question why they will not be prosecuted.

Doesn’t this make you wonder exactly what kind of fraud a VA executive would get in trouble for? Maybe at certain levels, Federal executives are above the law?

RELATED: Rubens Mocks Congress Over Fraud Investigation

On Christmas Eve, Federal prosecutors announced they will not pursue the case against the duo. Last Friday, VA announced that it finally demoted the two. Americans are wondering what it will take for the Obama Administration to prosecute agency executives who apparently commit a laundry list of white-collar crime at taxpayer expense.


Chairman Jeff Miller gave a stinging indictment on Fox News last Thursday:

“FBI Director James Comey waded into VA’s secret wait-list scandal by announcing an investigation into the matter and vowing to pursue wrongdoing ‘wherever the facts take us.’”

“More than 18 months later, it’s entirely unclear where the facts have taken the Department of Justice. The attorney general seems uninformed regarding even the most basic elements of the investigation, DoJ officials have refused to answer lawmakers’ questions on the matter, and meanwhile the agency is slamming the door shut on investigations nearly as fast as VA’s inspector general is referring them to DoJ.”

“That’s why it’s incumbent upon Attorney General Lynch to clear up the widespread confusion regarding this situation by promptly answering our questions.”

“Otherwise, we’ll never be able to solve the mystery surrounding why just a handful of people have been punished for a scandal that rocked the entire VA. But perhaps that’s just how the administration wants it.”

Do you think anyone at DOJ was listening? Not likely.


Rubens and Graves were found to have manipulated VA payment schemes and standards to the detriment of their subordinates for their own personal gain. The two were very high-ranking VA SES executives who created lower ranking vacancies at locations they wanted to move to by displacing subordinates.

RELATED: VA Lectures Congress About ‘Accountability’ Definition

After accepting the vacancies they created at two Veterans Benefits Administration (VBA) Regional Offices, Graves and Rubens also accepted over $420,000 collectively in moving incentives. However, since they created the positions and volunteered for them, they were not entitled to the monies but took the funds anyway.

VA OIG investigated the allegations and referred the case to the Department of Justice (DOJ) for possible prosecution. DOJ refused to prosecute after reviewing the case for less than three months.


Demoted is not really qualified in article unless I am missing something this morning?!!?! Is this the original recommended “demotion” that only demoted them one level but because of their “seniority”, will STILL EARN the higher pay grade? Do they still NOT have to pay any $$$ back? I really feel that in order to show as an “accountability lesson”, the VA should have FIRED THEM with NO PENSION and use them as an “administrative example” to deter future “gaming… Read more »

Can you imagine the dirt these two rug muffins have on a lot of people I would love to hear them start singing, yes I would like to know about also Undersecretary Hickey abruptly “resigned” these people are covering up a bunch of all the way to the White House and then some just a big bunch of pocket stuffers with no regard for veterans………..

crazy elf
@namnibor and others today! I agree 100% with your assessment of the DOJ, Sec. McDonald and VA’s inability to protect veterans and taxpayers from the massive “fraud, waste and abuse!” which is VA! Why hasn’t anyone heard from McDonald? Where is he hiding? Why is he hiding? What’s he afraid of? Who is he trying to screw now? What plans has he in store for veterans and taxpayers next? Here’s some interesting facts; 1.) a “bill”, which had been introduced… Read more »

Where is Secretary “MC Bob” you ask? I have it on good authority that the fearless leader is going to Vietnam to take part in the ground breaking ceremony for a New VA Regional Office in HO CHI MINIH CITY. Is he expecting a ground swell of geriatric Vietnam veterans ascending on Vietnam society??????????

crazy elf
I heard something about “old Vietnamese soldiers” being allowed to use VA service’s! Don’t know how true, yet this might be the reason he’s over there! As far as I’m concerned, they “used America to fight a war they knew couldn’t be won!” And our own government wouldn’t let us win it either. Now McDonald is going to allow them to rape our economy. I wonder if he’s going to give them (soldiers and children) money for disabilities they received… Read more »
Jim Starowicz
Bringing their politics threw the doors of the facilities that Never should have and then getting thrown under the bus by the pols, and those poser patriots served, seeking them needed media hyped ‘scandals’, oft repeated as nothing is done previously by same, to further their own poser patriotism and job security!! * * When Wealthy Country Served Readily Markets Vets While Most Slam Doors On Them * * DeJa-Vu: “With no shared sacrifices being asked of civilians after Sept.… Read more »
Do you think a reasonable person would consider this grounds to DEMOTE a VARO Director? By any standard other then VA’s I’d say a resounding yes, but we’re dealing with the VA so standards be damned…………………. Follow Up Review on the Mismanagement of Informal Claims Processing at the VA Regional Office Oakland, California 01/07/2016 07:00 PM EST In our previous report, Review of Alleged Mismanagement of Informal Claims Processing at VA Regional Office Oakland, California (Report No. 14 03981 119,… Read more »
Michael Reich

They should have been fired, prosecuted for fraud, waste and abuse. Will they pay the money back they stole? What about the homeless Vet’s that some may have died on the streets because these two were wasting resources; aren’t they culpable to some degree? This is just another example of why the VHA needs to go away

Matt Hurt
I agree. How on Earth can that be grounds for simple demotion? Where I currently work you get fired and arrested if you get caught stealing anything. This crap just makes even more angry that the VA keeps denying some of my claims as being non service connected when I spent the last 20 years in and the issue happened while I was in. Now if it goes through it won’t be enough to get past the threshold for the… Read more »
Questions. 1. What were they demoted to? What position? What is their pay? What are their decision-making responsibilities? 2. Why did Sloan Gibson initially decide to do nothing about this? 3. Was this policy that was manipulated? If so, what policies or steps have been taken to stop this from happening again? 4. How many veterans were denied care of any kind in which cost was cited as the reason? 5. Why did the DOJ refuse to prosecute if the… Read more »

To steal or redirect funds from most Federal Agencies is a Termination offense, which requires a fine or jail time. Steal stamps or money from the Post
Office (unless you are a high up postmaster or the main mistress) you are immediately fired. Why do we reward the executives and fire, or jail an average worker?

These people know the secrets of others who may have their hands in the cookie Jar, and I’m sure those who do have their hands in it are very high up in the ranks. I have said this before, why is it that the law makers are the first to brake the laws, I remember a man in NJ who stole some bread and baloney, and was sent to jail for a year, he stole it to feed his kids.… Read more »
Suzan Rhodes

That what I’ve said before. These two scrum know where the bodies are buried.

Reuben Castro Acosta
MR DIANE RUBENS YO ARE ONE UGLY UGLY LOOKING MAN WHEN ARE YO GOING TO MARRY MS KIMBERLY BEALE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Edward J. Blassingame Sr
Edward J. Blassingame Sr
Presidents Nixon and Clinton weren’t above the law who are those aholes to be people unintentionally made them gods because of the wars that this country has been fighting at some point that ends they executed a highly decorated Vietnam War veteran here in GA last he was an infantry officer had PTSD but went off his meds and killed a police officer.that hurt me a lot so who the hell told these BSA VA directors they were walking on… Read more »
Frank Calderon

Dear Mr.Krause:

When “lawmakers” shield the criminal what does that tell you, anybody answer? I know how I would answer without thinking a second time, I would say perpetrator and “lawmaker” are in the same league.

Frank P. Calderon

Don Karg


Dear Benjamin Krause

Kimberly Graves, director of VBA’s St. Paul regional office,

Republican Missouri Rep. Sam Graves

What part do you not get?


Don Karg

Privacy violations on the rise at Minnesota’s VA facilities
Vets find records released or sent to the wrong place.
By Mark Brunswick Star Tribune

Spelling your name wrong

crazy elf

And that is the “WHY” our Congressional Lawmakers aren’t doing anything to curb the corruption, waste and abuse THAT IS THE VETERANS ADMINISTRATION!

Keep on with the battle to bring justice for the veterans who have sacrificed so much for this country’s plutocratic elite. As is evident in how the corruption in the VA is resolved. I want to thank everyone for bringing your “A” game to this cause as it has affirmed my experience as well and given me great relief knowing that I’m not the only one who knows the VA is a corrupt agency, for that matter, all government agencies.… Read more »