Former VA Employee Charged with Running Criminal Scheme to Obtain VA Benefits for Others

SAN DIEGO -Daniel Rikkels of Chula Vista was indicted by a federal grand jury today on charges that he helped veterans fraudulently obtain disability benefits from the Department of Veterans Affairs (VA) while he was a department employee responsible for reviewing and approving disability claims.

According to the 33-count indictment, since 2020, Rikkels knowingly and intentionally instructed veterans to provide false, exaggerated, and misleading claims of service-related injuries to support their disability claims. Rikkels also instructed veterans to alter documents submitted during the claims process.

Through these false claims, the indictment said, veterans fraudulently obtained millions of dollars in VA disability payments and backpay, and Rikkels received millions of dollars in payments from the veterans in return for his work on their behalf.

Until June of 2025, Rikkels was employed by the Department of Veterans Affairs and was responsible for reviewing and approving VA disability claims from veterans. During this time-period he negotiated with veterans for assistance in their VA claims and demanded payment from them, all while he was taking official action on their claims in violation of government ethics laws.

The indictment also alleges that Rikkels frequently requested that veterans who lived in the local area meet him to make payments in cash to minimize what he would have to pay in taxes. According to court records, the investigation revealed that during just a three-month period between February and May of 2025, Rikkels met with at least four local veterans and received a total of $57,000 in cash payments from them. On November 13, 2025, agents searched Rikkels, his vehicle, and residence and seized a total of over $280,000 in cash.

"The Department of Veterans Affairs and the VA disability system serve a crucial role in providing support and care to those who have served and sacrificed in defense of our country," said U.S. Attorney Adam Gordon. "We will zealously safeguard the integrity of the VA disability program and will investigate and prosecute those who attempt to undermine the system to their own financial advantage."

This case is being prosecuted by Assistant U.S. Attorneys Joseph S. Smith and Daniel F. Casillas.

DEFENDANT Case Number 25-cr-4276-H

Daniel Rikkels Age: 55 Chula Vista, CA

SUMMARY OF CHARGES

Conspiracy to Commit Wire Fraud - Title 18, U.S.C., Section 1349

Maximum penalty: Twenty years in prison and $250,000 fine

Wire Fraud - Title 18, U.S.C., Section 1343

Maximum penalty: Twenty years in prison and $250,000 fine

Bribery of a Public Official - Title 18, U.S.C., Sections 201(b)(2)(A) and (B)

Maximum penalty: Fifteen years in prison and $250,000 fine

Willfully Engaging in Acts Affecting a Personal Financial Interest - Title 18, U.S.C., Sections 208(a) and 216(a)(2)

Maximum penalty: Five years in prison and $250,000 fine

Laundering of Monetary Instruments - Title 18, U.S.C., Section 1956(a)(1)(B)

Maximum penalty: Twenty years in prison and $500,000 fine

Money Laundering - Title 18, U.S.C., Section 1957

Maximum penalty: Ten years in prison and $250,000 fine

INVESTIGATING AGENCIES

Department of Veterans Affairs, Office of the Inspector General

Federal Bureau of Investigation

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

Anyone with information about allegations of unlawful activity; fraud, waste and abuse; violations of VA policy; or gross mismanagement involving VA programs and operations can report it by calling the VA Office of the Inspector General Hotline at 800-448-8244 or at www.va.gov/oig/hotline.