Philadelphia VA

VA OIG Calls Out Fraud And Abuse At Philadelphia VA

Philadelphia VA

Benjamin KrauseVA OIG just released its conclusion of an investigation into Philadelphia VA confirming allegations of fraud and abuse committed by VA leadership at the location.

The VA OIG report is titled, “Administrative Investigation Misuse of Position and Failure to Disclose and to Satisfy Financial Obligations Veterans Benefits Administration VA Regional Office, Philadelphia, PA.”

Should this come as any surprise following revelations from the past year of problems at that location? I am surprised VA OIG was somewhat honest about what they found, though I am certain there is more to the story than what was admitted.

DOWNLOAD: Full Philadelphia VA report

According to the VA OIG summary:

“The Assistant Director, Philadelphia VARO, while as the Acting Director, misused her position for the private gain of a subordinate and his spouse, misused her title to endorse the private enterprise, and invited subordinates to her home to take part in psychic readings. We also found that she had a less-than-arm’s- length relationship with subordinates whom she characterized as friends. As a senior leader, she is held to a higher standard and should set the tone for her subordinates to follow, and establishing personal relationships with a select group of employees within her chain of authority gives the appearance of preference for those few employees. Although we found no actual preference, just the appearance of preference diminishes her position and authority as a senior leader. Further, we found that the Manager of the Pension Management Center (PMC), failed to report his spouse’s income on his 2013 and 2014 Confidential Financial Disclosure Reports, Office of Government Ethics (OGE) Forms 450, which he certified as true, complete, and correct. We made a criminal referral of the false statements to the U. S. Department of Justice (DOJ), but they declined to criminally prosecute in favor of administrative actions. The PMC Manager also failed to claim that same financial gain on his and his spouse’s income tax returns. We referred the failure to report income to the Internal Revenue Service (IRS) and the Pennsylvania State Department of Revenue.”


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  1. So…

    Vets are dying because of criminal negligence,..

    Billions of taxpayer dollars are disappearing down the construction over-run rathole,..

    Millions wasted on solar panels, ..

    Vets committing suicide from being addicted to pain killers and then dumped on the street with no care, ..

    The two year benefits log jam is worse than ever…

    Some VA hospitals are so enept they can’y even answer the phone…

    And they waste their time investigating a physic party…

    Well we know where the priorities are NOW…

  2. This report confirms things we already knew. I doubt that the Philly VARO is any worse than many of the others. If you’re looking for a common thread in my last few posts, though, it’s this: the VA is incapable of policing itself.

    We know about the abuses, misconduct, and mismanagement at the VA already. The question now becomes the same one a dying Jimmy Malone asked Eliot Ness in “The Untouchables” — “what are you prepared to do?” The answer from the VA has almost always been, “not a damn thing!”

  3. Now with the power of public media, I wonder if enough pressure can be brought to bear on the DOD,VA,CIA,and all other Gov. Biological agencies to own up to all the the areas that the color banded defoliants were tested,stored,and used as for back as Korea,and Vietnam. Dugway Proving Grounds in Utah,Ft Detrick(Fredrick,Md) now in the spotlight(again)for their testing of Antrax ((on the public???)in nine states. It is time the Media reported the news and not be afraid of their jobs,and get all veterans of the United States of America, the aid, the DOD,VA and all other Gov.agencies deny we were exposed to. If you can read this in English thank a Teacher,if you are an elected official or news reporter thank a Vet. !!!!

  4. The problem is no doubt a lot worse than VAOIG admits. The system is rife with corruption at the expense of us veterans that have to endure sub-standard care. What’s Secretary McDonald going to do about all of it? I can tell you right now, he’s going to do NOTHING!



  6. FYI,
    .Prisoners in CA sued in 2001 for the lack of medical care and the CA Prison system went under federal receivership, coming out of a federal 3 court judge decision. PLATO V BROWN. Just an idea.
    Again, I pray for the hoes of finding an attorney to go after the CA WC system because the CA wcab does not enforce or follow constitutional law to make sure we get medical care or wage replacement benefits.
    There is also Title 42,
    I am getting wonder how many patients get actual real medical care?..

    1. I just happen to stumble onto this site, trying to get some answers to what my husband and I are going through now with the VA, and I must admit I’m a little surprised. I had no idea that all this was going on. My husband had a stroke in 2013, and after several months in the hospital and then several more at a nursing home, he was finally able to come home. Within 2 weeks, we had an electrical fire and our house was condemned, so Adult Protective Services found us the apartment we are in now. We lost most of our belongings and all of our pets, so it’s been very hard for the both of us emotionally, but we’re just trying to survive the best we can. Ed had gone to the VA several times over the past few years, but because our financial situation was pretty bad [I’ve been disabled since 2001] they never sent us a bill.They were sending his heart medicine and his gout meds through the mail; again, never with a bill, so we just thought they were taking it out of his Medicaid. In December of 2014 he went back to the VA and they asked for his insurance. I told them all he had was Medicaid because he’s now permanently disabled from his stroke, and the person at the desk became quite rude and said they don’t accept Medicaid or Medicare or any other gov. funding. I explained what the situation was with us and that he’s never gotten a bill from the VA before, and since he’s been going there for years we just thought they took his Medicaid. We left, and within a few weeks we received a letter from the Department of the Treasury informing us that ‘the Federal Agency named below’ notified the U.S. Dept. of the Treasury’s Financial Management Service that we owe a delinquent debt. Without even so much as giving us a chance to dispute this, they started garnishing my husband’s Social Security checks for hundreds of dollars. When I called them up, I asked them how it was possible for an agency who claims they have nothing to do with any government agencies is able to go right over our heads and have his government check garnished for hundreds of dollars for the last 5 months now. This is the craziest thing I’ve ever heard. How is it possible that an agency is able to have someone’s gov. check garnished without even so much as proof that the debt was owed in the first place? Has anyone else ever heard of this happening? Is this even legal?

      1. You should have been given the opportunity to state you had financial hardship and the bill should have been forgiven. You didn’t say when, or where, your husband served. That also makes a difference. As he may be entitled to file a disability claim or move up the eligibility ladder. The first thing to do is contact the Patient Advocate at the VA where he gets his medication. I would then contact your Congressman. Many of them have personnel on staff who assist veterans in cutting through government red tape. You may also try your county Veterans Service Officer (known as a VSO) (if you live in a state with little population, it may be a state Veterans Service Officer). There is no charge to use them. I would also contact the SS administration and inform them this is being disputed. You could also try to see if an attorney would take on the case pro bono.(without a fee). Google veteran lawyers pro bono work. There are a number of listings. Best of luck to you and your husband.

  7. If the manager worked at the IRS, they’d be fired immediately. My first trial as an attorney was prosecuting an SES executive employee at the IRS who failed to report less than $100 in savings bond income on his tax return. He was fired for that alone.

    1. They actually did it for less than $100? Man, that is tough. Why is it then they have so many that don’t pay taxes now and they are not fired? If they work there, they shouldn’t be delinquent, but it appears many are. I like that the guy got fired as it sends a message that people had better do the right thing!!!

  8. I just wished to add, I live in Pennsylvania. I will be writing my representatives, the States Attorney General as well as the director of the State Department of Revenue to see if they will do anything with the referral for investigation and prosecution. I have little faith the IRS will do anything as they are all birds of a feather.

  9. I read this yesterday and my blood just boiled. A guy so broke he steals a loaf a bread will get a couple of years in jail, yet the DOJ won’t prosecute anyone unless they are are a (usually) Republican politician or a big corporation they can extract millions of dollars from.

    Let me also remind my fellow travelers that the new Director of the Philadelphia RO was paid $288,000 in relocation expenses. That made the news not even three months ago. And what has become of that? Nothing.

    If anyone can defend this, please let them step forward and give me a reason to believe the VA is not like a fish, rotten from the head, to the tail.

  10. “VA OIG just released its conclusion of an investigation into Philadelphia VA …”

    We veterans face problems at most VA locations.

    The question we need to ask and answer, “How do we communicate/educate the American People and explain Congress and their failed VA agency does not provide care for America’s injured service-members?

    As we approach the political campaigning; there will be no discussion of VA failures unless we unite our brain-power and implement a strategy making this an election issue.

  11. This quote from above displays the systemic problem in the VA in which they *never* want to actually prosecute but favor “administrative actions”, and as long as the VA employees know that they will just be shuffled to another position or even worse and more common, PROMOTING said individuals, there will be no “Change We Can Believe In”. Obama’s DOJ is sure quick to jump on police protecting society from thugs but god forbid they should stand behind Veterans being treated like crap!
    “[…We made a criminal referral of the false statements to the U. S. Department of Justice (DOJ), but they declined to criminally prosecute in favor of administrative actions…]”
    I guess these “Psychic Parties” are another part of the “Disney-fication of the VA”…and take it “Madam Mim”, Disney’s renowned witch, has been working her wonders to boost VA Bonuses while Vets are denied and lied to?
    Why was there no mention by the VAOIG about all the moldy stacks of Veteran Medical and Claim Files in basement, nor all the heaps of years-past not even gone through mail from Veterans? The state of uncleanliness and such were neither mentioned?
    Maybe the VAOIG go to the same “psychic parties” to reach their results? LOL!

  12. Wilmington is next , but the OIG is not going to admit what their office did to a friend of mine. Especially the spokesperson who made false statements publicly that a 3rd party initiated a criminal prosecution, when in fact it was the VA Police. To make things worse, you have the Merit Systems Protection Board in Philadelphia , who have some Administrative Judges who lie for the agencies. If I were a lawyer who has had clients at the MSPB, I would have all law firms in the area file an ethics review of the Philadelphia Northeastern Office for corruption. You have government attorneys committing Brady violations and submitted perjurious testimony and in some cases where they even lied to Congress. But Carper, Coons and Carney will put on that gameshow host face and make it seem as though it is great. A jury trial always is the answer.

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