Temple VA Money Laundering

Shawshank Style Money Laundering At Center Of New VA Scandal

Temple VA – Similar to the money laundering fraud and abuse by the mafia or in the movie Shawshank, veterans using Compensated Work Therapy were victimized and abused.

This Temple VA money laundering scheme is the second such scheme exposed in the past month and resembled that like in the movie Shawshank while victims and witnesses were treated to a decade-long cover-up facilitated by retaliation and intimidation akin to the “mafia.” Money laundering at Temple VA cost taxpayers at least $1.3 million but also harmed countless veterans by being farmed out like the prison laborers in the movie Shawshank.

The previous scheme exposed last week involved West Los Angeles VA where $11 million was bamboozled from VA in part of a money laundering and bribery scheme.

Cover-up “Like The Mafia”

From one witness, “Always thought they were kinda’ like the mafia. Just – you know. Just their way of covering stuff up, for each other.” “This has just been going on for six/seven/eight years and nothin’ ever done about it.” Mr. [Redacted] was asked if he feared retaliation and stated, “Yes.”

RELATED: VA Director Tells Vets To Give Up Rights To Appeal

For over a decade, veterans trying to get their lives back on track through substance abuse treatment in the Compensated Work Therapy program were victims in the scheme. They were frequently lent out to high-level VA officials to work on personal cars and lawns.

Administrators receiving complaints did nothing as the boss of the program illegally funneled money $1.3 million through a business called Whitetail Industrial Parts and Service. The scheme involved padding purchases with a 30 percent surcharge.

RELATED: VA Secretary Admits Agency Is “Adversarial” Toward Veterans

About Temple VA Compensated Work Therapy

Many of the victims lived in the Temple VA dormitory for the residential rehabilitation program. The dorm could house almost 200 veterans. Those in the Compensated Work Therapy program worked for minimum wage on the 167-acre Temple VA campus.

The veterans perform duties like housekeeping and food service mostly. They also worked in the motor pool, which was where they were loaned out to high-level VA officials for personal work like lawn mowing at the person’s home.

The Compensated Work Therapy program was created to help struggling veterans get back on their feet. Most of the veterans are out of the job market for years, and the therapy program is supposed to provide experience and confidence to help them become independent.

RELATED: VA Evaded Reporting Bad Doctors

About motor pool, one veteran said, “You did your best not to go there, but they always had open positions because so many people would quit.”

Temple VA Whistleblower

Don Peace, the manager of the Temple VA’s vocational program, told investigators that working at the motor pool had done irreparable harm to the veterans who were supposed to benefit from it.

“I think it really affected the veterans … it drove their self-esteem even lower, and then their only way of dealing with it, then, was to go back and either use drugs or drinkin’,” Peace told investigators, according to a transcript of his interview. “And for those that then was working as outpatients that was no longer in the (domiciliary), then they would relapse and just quit showing up, and we would have to try to track ‘em down.”

RELATED: Veterans Choice Program Overbilled By Tens Of Millions

Congressman Speaks Out

“I am shocked, outraged, and exasperated to hear of these issues, and I expect the VA to work quickly to right the wrongs done to our heroes,” Carter, a Round Rock Republican who represents the Temple area, wrote in a letter to VA Director David Shulkin and VA Inspector General Michael Missal.

“According to media reports, many of the veterans that were subjected to this behavior were participating in a substance abuse rehabilitation program, and trying their best to get their lives back on track, only to be mistreated by the very people meant to help them. It is inexcusable.”

Sources: https://www.mystatesman.com/news/local-military/investigation-finds-corruption-intimidation-temple-campus/K1PQFY0lDPgPnKfOZQmgPM/


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  1. 11/21/2017

    Dear Benjamin Krause,

    We still have 508 dead at the Phoenix VA, as of October 2016, and that is more important that $11 million lost in LA or this $1.3 million crime.

    Who are the 508 dead and how did they die? I have been asking this question for years now.

    As the Judge stated on Fox News this is “murder!”


    Don Karg

  2. @Ben, over the years, you’re site has taken on its own character. With that in mind, I do realize the importance of SEO for rankings. But, have you come across any ways to keep some of the past characteristics in place?

    I ask this, because at times I like to post questions to other Vets in order to gain insightful information while dealing with the beast (VA). At times, this process has been a god send for me. Others participation in sharing information are invaluable. Thanks. – – – Nutter.

  3. If you read I previous comment I on here. I said there were VA employees who could be charged under the RICO law,corruption,collusion with veterans attorneys pay them off to undermine the veteran, kick back and even murder by these animals

    1. Edward,
      You might, after reading this comment, believe I’m a “conspiracy theorist”! I’m NOT! I research and RESEARCH some more, before speaking!
      That said:

      Our government agencies, corporations and politicians have been murdering people unabated for decades! This is nothing new! For example:
      There’s a great scene in “The Godfather” ‘part 2’, where Michael Corleone is walking with his “ex” down the street. He explains how “naive” she is over this issue!

      In the mafia, it’s understood what’s expected from the underlings, it’s “covert”! In our government and the others I mentioned, it’s “overt”! Meaning it’s kept out of sight! Yet, it occurs regularly!

      The sooner people understand how this, and other governments are complicit of many people are, of ALL ages, going missing and murdered, the better!

      I just wish our MSM’s would start telling the truth about everything!

  4. I am not surprised by this in the slightest, as a former Temple VA employee. During my employment at the facility, I observed veterans and caregivers being denied acceptance into the Comprehensive Assistance for Family Caregivers benefit (stipend-related) of the VA’s Caregiver Support Program (CSP).

    I informed Mr. Krause of this fact in an email on June 6, 2016, and again on June 13, 2016. Apparently, no action was to be taken concerning my report. I tried several other media outlets, to no avail. I then contacted the Disabled American Veterans on May 17, 2017, as they ignored my report. I also contacted the VA Accountability Team via their online form on July 31, 2017, though I was told I could contact the Office of the Inspector General (OIG) concerning the issue. I then contacted the OIG on July 31, 2017, and filed an official complaint. Any guesses how that went? An automated confirmation stated I would be contacted within six weeks if an investigation was started. Any takers on whether or not I was contacted? Steadfast, I contacted the Veterans of Foreign Wars about the matter on August 7, 2017. They, too, declined to address the matter, though referred me to the OIG. How quaint. Alas, I eventually gave up.

    There remain an untold number of veterans and caregivers who may have qualified for CSP services–to include a monthly tax-exempt stipend–though the VA employee responsible for reviewing their cases simply denied, denied, denied. Astonishingly, a number of the official denial letters were stamped with dates of denial relating to weekends and federal holidays–days none of the CSP staff were working. So am I surprised by the most recent news from the Temple VA? Not in the slightest. What surprises me more, however, is the resistance I encountered from so many people when I reported fraud, waste, and abuse. Apparently, it’s shock worthy when some VA programs are found to have violated federal policy, and “meh” worthy when others do so.

    1. @Just Passing Through – – – I wanted to encourage you to post on other issues as well. Not only Mafia style money laundering, but also Mafia style as a whole, even down to when one VA employee protects another. Some ole, same ole. From my perspective, VA knows that most Veteran battles will be on a one to one basis. But if we can get issues out on the table for better exposure, we may see things to click at a faster pace, when our issues are continually brought up, and discussed with others. Thanks again. – – – Nutter.

      1. @ANutterVet Thank you for the encouragement. I reported the corruption I witnessed involving the Caregiver Support Program to as many people/entities as I could think of–to include Benjamin Krause–to no avail. Not a single person chose to pick the story up or take action.

        In my short time employed by the VA, I came to understand that of the four cabinet-level departments I’ve worked for or with, the VA was by far the most egregious in its level of corruption. For future topics, I’ll chime in when I can. It’s just that this Temple VA topic hit close to home, as that’s where I worked.

        As well, I agree with you. We veterans, especially those who were employed by the VA, need to speak up. Only, we also need others who hear our voices to advocate for us. Otherwise, it’s like speaking to a brick wall or preaching to the choir. Semper Fi

  5. Well, NOW THINGS ARE STARTING TO GET INTERESTING…. Is the next step to compare the VA to The Soprano’s. a disservice to the memory of the show.
    Hey folks, it’s just gambling at Ricks, what did you expect ?

  6. Remember recently, Shulkin stated that the Claims Side of VA has been adversarial to Veterans. Well, I believe that he did that to soften the blow when it comes out that the Medical Side of VA has been doing the same as well. With VA leadership, everything is calculated. We’ll see. – – – Nutter.

  7. Try to say this 3x fast: “Shawshank Scheming Shulkin”…you will immediately sound like “Shelly, on South Park”.

    1. Haha!!!!
      That is like those fatbacks in the canteen engorging themselves in cheesypoofs between patients.
      That is where the term ” two, toned, titanium, tip, titties” derived. CIR.2013 ~VA cafeteria

      1. Thanx for your service!
        VA Employee Non Veteran Catholic ERIC CANNA Akron Ohio VA Waterloo Road who stated, and who said,

        Hell you need a counselor and psychologist outside of the VA to deal with the mental trauma of dealing with the VA non veteran staffs bull sh*T within the VA. And SO to cross check their VA medical notes, and lies…

        In my life I had never met anybody so “Morally Bankrupt”, evil, and sinister like those non veteran VA employees here in Ohio. Here are two more:
        1.Pamela Sue Sherer Non Veteran Catholic Akron Ohio VA Waterloo Road
        2. Peter M. Barach Non Veteran Jewish/Cathoic (Draft dodger 1970-1973) C and P “Hatchet Man” Aka: The Monster of Shaker Heights”, “Dr Frankenstein” of the VA Wade Park Louis Stokes VA Cleveland Ohio. Peter M. Barach VA employee, who only uses other non veteran catholic (Draft dodgers) mental health workers medical notes so shade and “Cherry Pick” medical notes that work, create fairy tales, and create his own false narratives in C and P exams.

        Not that religion is a factor, “nor should it be”. Nor the fact that they are non veterans! Nor the fact that they are not disabled and I am a disabled veteran! Nor have I ever held any bias against anybody because they were different ethically, racially, or religiously.
        But it sure seems odd sociologically. That I am different then they are. They are different then me! It is identified! And that they are “Strangely” the ones encircling me at the VA in Ohio. And lying, manipulating my medical notes, and just engaging in SO many other unethical things.
        And doing, and engaging in what I feel is against federal law…

      2. @OHIO VA NEPOTISM – – – Exactly. Seek out your State’s Elder and or Disability Ombudsperson. You’re still a citizen of the State. And, by doing this, and if all goes well, the Ombudsperson may be able to protect you. Plus, VA doesn’t like being watched. They (VA) don’t like a angry spouse (female) either. Especially in todays climate of hot topics. Thanks. – – – Nutter.

      3. Nutter.
        I am represented by a veteran’s organization (DAV). Yes. Since I vote. From day one. I decided to contact the state reps in Ohio. This was my decision from the get go. Might as well keep them all posted, reps, and dems in Ohio alike. Since this issue with the VA is a bipartisan issue. And yes, the VA staff, and surround support individuals. They are like “the mafia”, or “a pedophila ring”.

        Also. I obtained private medical staff in order to have them explain to me. Honestly and ethically. Exactly, in simple English what had happened to me in the active service, how I was injured, and the impact those injuries (events, and stressor (s)) had on my life. SO, that it is written. And so that it is corrborated, and the notes from those non veteran VA medical staff are crossed matched through my private providers.

        I found an injured veteran or disabled former soldier without any social network (isolated) is vulnerable, and will absolutely be taken advantage of by the VA staff in Ohio. Just like a vulnerable child with no social networks in a catholic church, surrounded by molestors and pedophiles!

  8. Dear Secretary,
    Should I, ever end up in one of your penitentiaries, due to some unforeseen act,
    I gave one question for you.

  9. Here’s a new report out from: “military.com/Daily news” via: Fox News, dated 20 November 2017.

    “Colorado VA Kept Secret Wait Lists for Mental Health Care: Report”

    The “Schedulers knew they were breaking the rules” (laws)!
    Will they, along with the upper management, be held accountable for breaking the laws? I doubt it. They’ll probably retire with full benefits! Which is ‘SOP’ for VA management!

  10. So, Rep. Carter (R-Tx) is “…shocked, outraged, and exasperated…” over veterans being treated as “SLAVES”, or “Endentured Servants”, FOR VA upper management! What else is new!!!!! Will, or can, he do anything about it? That’s the $100,000 question!

    My wife said something yesterday I feel needs to be disclosed.
    She believes even though the VA has been caught numerous times in the past. Since the new administration has taken over, MORE corruption, waste, fraud and abuse IS coming out from the darkness! She says “It looks as though a flood gate had opened, and MORE egregious acts against veterans, and taxpayers, is being reported!”
    She also said, “More VA employees will be caught!”
    “Only, with so much corruption going on in our government, from the lower levels to the Federal levels, it’s going to take time to sort it ALL out!”
    Whether this is true or not remains to be seen!
    The one thing she’s upset about is, She wishes the mainstream medias would report on ALL of it! She’s been sending information to anyone who should be listening. Her Twitter account is followed by MANY in Washington D.C.. Including President Trump!
    I think it’s NOW time for Shulkin to start demanding criminal charges be levied against anyone caught screwing veterans and taxpayers! If he doesn’t, then he should step down and go back to the private sector! He’s NOT WANTED in the VA!

    1. It is disturbing to know that while many veterans suffer at the hands of VA, many spouses are greatly affected by it as well.
      Many veterans probably would not have done anything if their spouses or loved ones didn not push the issues being raised.
      So shout out to all the dedicated spouses and family fighting this healthcare RACKET!
      Shulkin is a DWEEB!

      1. CorpsmanUp,
        Your 100% correct on that. My wife used to think the VA was considered to be the greatest thing since sliced bread!
        It’s been now, over 7 to 8 years we’ve been together, that her opinion has done a complete 180!
        Here’s interaction with some of the VHA reprobates has been priceless! I wish you could see her in action! LOL!!!!!

      2. CorpsmanUp! A special heart felt thanx to the women in our lives this thankgiving…
        To add to your thought. This is so true. For my family, and my observations. If it were not for the women in our lives, pushing us veteran’s, and holding the VA staff, those non veteran VA employees, and the VA Hospitals accountable. And if it were not for our mothers, sisters, wives (spouses), and our dear female friends! I don’t think a great deal of (us) our injured veterans and disabled former soldiers would ever come near their entitlements and benefits. And certainly many of us would end up dead, forever alone, under-a-bridge, or destitute! And without these women in our lives our stuggles, our stories, and our experiences would never be told accurately!

        As for those non veteran VA employees there is a very special place in hell you. I feel as thought they especially take advantage of those single injured veterans and those single isolated disabled former soldiers without spouses (single vets) to support them. The VA counselors, VA psychologists, and non veteran VA staff are especially evil and certainly sinister to those single injured vets and disabled former soldiers. Without support and isolated, these non veteran VA staff try to find a reason (s) to deny single injured vets, and single injured former soldiers their benefits. By merking up their va medical notes and creating distractions (in VA medical notes) to their original in service injuries.
        The VA non veteran staff and VA non veteran employees are like woves, “the mafia (Mob) or better yet “A pedophila ring” in my eyes…

  11. Well here is another “SHAM”. How about managerial personnel receiving “ANNUAL BONUSES” on made-up At-a-Boys at the each year. This goes from the Supervisory level all the way to the top. How about moving up when one “Mucks up”? That is another. How’s this one? “Receiving retirement in place of disciplinable action(s) that constitutes “Forfeiture of all Pay and Allowances” even jail time and done so with NO red marks in their records. Due to that being Management has no “Personnel Records”. No records no problems! This goes on more than known in more places than acknowledged. Makes me want a Colonoscopy. NO SURPRISE ):(

  12. VA Sec. Shulkin please exit and take the rest of the bags of flesh occupying V.A. Titanic Deckchairs and walk the plank to the swamp’s recycle program. NEXT…

    1. ^^I stated that because as much attention the opioid & heroin epidemic is receiving, am thinking this will be grounds for POTUS to kick Shit Can Shulkin to the Kurb.

    2. And speaking of Shitcan Shulkin, I liked the way he denied Blue Water Veterans the benefits if presumed Agent Orange exposure, as well as not signing the paperwork giving Veterans suffering from bladder cancer, Parkinsonizium, and other diseases added to the “presumed diseases” as a result of AgentOrange exposure.
      The matter sat in the hands of the previous Administration, then, when the time came to man up and give the Veterans or their widows benefits, he tabled the matter.

  13. “I am shocked, outraged, and exasperated to hear of these issues, and I expect the VA to work quickly to right the wrongs done to our heroes,”

    Yea I bet you are…..Not
    No wonder we have a hard time with our Claims these greedy Bastards want it all While Shit can Shulkin is asking for more money, And we must do this Quickly..LOL.
    And this is only the VA can you imagine all of the other Agency’s Ripping the Tax payer off.

  14. “[…“According to media reports, many of the veterans that were subjected to this behavior were participating in a substance abuse rehabilitation program, and trying their best to get their lives back on track, only to be mistreated by the very people meant to help them. It is inexcusable.”]”-

    I will go as far to suggest when they dig deeper, the hacks at the VA were probably giving those ‘indentured servants’ little “rewards” in the form of a pharmaceutical…you know, to keep them motivated and entrenched in the corruption. Oh…F you VA…click THIS.

  15. That means those high level official should be reported to the IRS and the VA ethics committee.
    The VA is a penitentiary. Shulkin is the Warden. I wonder if there is an impeachment process for the Secretary besides reporting to the medical board where he is licensed.

  16. Well that totally sucks@@

    I give the remainder of my 1000 characters a day till the year 2018, to T, to use as he pleases.

    1. For the year 2019, I hereby give my 1000 characters a day as follows: 500 to Seymore klearly, and 500 to Crazy elf.

      1. Ben, I love the new page format and on a laptop using Windows, it simply looks much more neat, tidy and streamlined, with special likes for the opaque/translucent image as it pulls down. Professional. Bravo.

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