M21-1 Manual  /  Part X, Subpart iv, Chapter 3, Section A

Fraud and Laboratory Analysis of Evidence

M21-1, Part X, Subpart iv, Chapter 3, Section A

Overview

In This Section

This section contains the following topics:
TopicTopic Name
1General Information on Allegations of Fraud
2Handling Cases of Fraud
3Office of Inspector General (OIG) Regional Field Offices
4Potential Fraud Against a Department of Veterans Affairs (VA) Claimant
5Requesting Laboratory Analysis of Evidence

1. General Information on Allegations of Fraud


Introduction

This topic contains general information on allegations of fraud, including
  • definition of fraud, and
  • policy for disclosing information on cases of fraud.

Change Date

July 25, 2018

X.iv.3.A.1.a. Definition: Fraud

Fraud occurs when facts are intentionally misrepresented or withheld in the interest of obtaining or retaining Department of Veterans Affairs (VA) benefits. The table below describes types of fraudulent acts.
Type of Fraudulent ActDescription
commissionOccurs when an individual knowingly makes or causes to be made, conspires, combines, aids, or assists in, agrees to, arranges for, or in any way procures the making or presentation of a false or fraudulent certificate, statement, voucher, or paper concerning any claim.
omissionOccurs when an individual who is entitled to or receiving benefits fails to provide information and all of the bullets below are true.
  • The individual has knowledge of the facts on which eligibility for or entitlement to the benefits is based.
  • The individual had knowledge of a change in circumstances and knew that such change could affect entitlement or eligibility.
  • The individual chose not to notify VA of the change in circumstances with the actual intention of
    • receiving or obtaining benefit payments, or
    • retaining increased benefit payments.
  • The individual received or retained benefit payments or increased benefit payments as a result of the intentional failure to disclose the change in circumstances.
Reference: For more information on the definition of fraud, see

X.iv.3.A.1.b. Policy for Disclosing Information on Cases of Fraud

Limit the sharing of information regarding allegations and referrals of cases of fraud to those individuals having a need to know. Secure pertinent records to prevent tampering or loss.

2. Handling Cases of Fraud

Introduction

This topic contains information on handling cases of fraud, including
  • types of cases to refer to OIG
  • procedure for handling cases in which a fraudulent act might have occurred
  • referring a case of fraud to OIG, and
  • cases of fraud involving Central Office (CO) or regional office (RO) employees.

Change Date

April 9, 2025

X.iv.3.A.2.a. Types of Cases to Refer to OIG

In certain areas, local Office of Inspector General (OIG) regional field offices provide locally-determined guidelines to VA regional offices (ROs) in their jurisdiction for referring cases of fraud. If there are no locally-determined guidelines, refer all cases of fraud to OIG. Exception: Unless local agreements specify, do not refer cases in which the
  • overpayment attributable to fraud is less than $10,000, or
  • initial act of alleged fraud was committed more than five years prior to the current date.
Reference: For more information on OIG regional field offices, see M21-1, Part X, Subpart iv, 3.A.3.

X.iv.3.A.2.b. Procedure for Handling Cases in Which a Fraudulent Act Might Have Occurred

Follow the steps in the table below after making a preliminary decision that a fraudulent act might have occurred.
StepAction
1Prepare a notice of proposed adverse action that notifies the beneficiary or fiduciary of
  • the proposed adjustment, including the
    • revised rates, and
    • dates of payment
  • the reason for the adjustment
  • his/her right to present evidence to rebut the evidence serving as the basis for the proposed adjustment
  • the 60-day period, which begins on the date of the notice, for submitting evidence to show why the adjustment should not be made
  • his/her right to representation and a personal hearing, and
  • the fact that if VA receives a request for a hearing within 30 days of the date of the notice, VA will continue paying benefits at the present rate until the hearing is held and the testimony is reviewed.
Important: Avoid any mention of fraud in the notice of proposed adverse action. Note: Provide a copy of the notice of proposed adverse action to the OIG regional field office with jurisdiction over the RO that prepared the notice. References: For more information on
  • preparing a notice of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A, and
  • the jurisdiction of OIG regional field offices, see M21-1, Part X, Subpart iv, 3.A.3.
2Establish a suspense date that is 65 days from the date of the notice of proposed adverse action.
3Did VA receive evidence within the 65-day period that would change the decision to adjust the beneficiary’s award?
  • If yes,
    • make any necessary adjustments to restore the award to its original state, and
    • take no further action.
  • If no, go to the next step.
4Amend the award for the appropriate periods effective the beginning date of the award or the day preceding the date of the fraudulent act, whichever is later, per 38 CFR 3.500(k). Note: Use the reason Fraud for each award adjustment resulting from fraud. Reference: For more information on adjusting an award for a fraudulent act, see the Veterans Benefits Management System Awards User Guide.
5Is referral of the case to OIG appropriate, according to the instructions in M21-1, Part X, Subpart iv, 3.A.2.a?
  • If yes, go to Step 8.
  • If no, go to the next step.
6Send to the beneficiary or fiduciary a decision notice that meets the requirements set forth in M21-1, Part VI, Subpart i, 1.B.
7Does the fraud case involve foreign residency or domicile as discussed in M21-1, Part X, Subpart iv, 3.B.1.c?
8Does the fraud case involve foreign residency or domicile as discussed in M21-1, Part X, Subpart iv, 3.B.1.b?
  • If yes, complete the remaining steps in this table while concurrently following the instructions in M21-1, Part X, Subpart iv, 3.B.
  • If no, go to the next step.
9After authorizing the award adjustment referenced in Step 4, send to the finance activity an encrypted e-mail that
  • requests postponement of any collection action
  • cites M21-1, Part X, Subpart iv, 3, as the basis for the request, and
  • provides the following information:
    • file number
    • payee number
    • beneficiary’s name, and
    • date of the award adjustment.
Note: The beneficiary or fiduciary retains all rights, including the right to request a waiver of any overpayment which may result from the adjustment.
10
  • Select and append the OIG Case corporate flash in Share.
  • Add the following system note: Fraud referral to OIG. Coordinate with OIG if waiver request is received.
Reference: For more information on selecting and appending corporate flashes in Share, see the Share User Guide.
11Send to the beneficiary or fiduciary a decision notice that meets the requirements set forth in M21-1, Part VI, Subpart i, 1.B. Important: In the decision notice, do not
  • reference the right to request a waiver, or
  • discuss collection of any debt arising from the adjustment.
12Refer the case to OIG, citing beneficiary or fiduciary fraud under 38 CFR 3.901 or 38 U.S.C. 6102. Important:
  • Refer cases to OIG only after completing development and making any necessary award adjustments.
  • Pension management centers (PMCs) must
    • e-mail a copy of their OIG referral to the Fraud Incident Team at VAVBAWAS/CO/FRAUDINCEDENTTEAM, and
    • include the words OIG Referral in the e-mail subject line.
Reference: For more information on referring cases of fraud to OIG, see M21-1, Part X, Subpart iv, 3.A.2.c.
13
  • Establish end product (EP) 330 with a suspense date that is the first workday following a 60-day period that begins on the date of authorization of the award adjustment.
  • Add Request for Special Report as a tracked item.
  • After the suspense date passes, check the status of the OIG referral.
14Did OIG respond within the 60-day suspense period?
  • If yes,
    • upload the response to the beneficiary’s electronic claims folder, and
    • go to the next step.
  • If no,
    • assume OIG will not pursue the case
    • instruct the finance activity to start collection action
    • clear the pending EP 330, and
    • disregard the remaining steps in this table.
15Did OIG indicate it will pursue the case?
  • If yes, go to the next step.
  • If no,
    • instruct the finance activity to start collection action
    • clear the pending EP 330, and
    • disregard the remaining step in this table.
16
  • Refer the claims folder to OIG.
  • Update the suspense date to one that is
    • consistent with OIG’s tentative date for resolution of the case, but
    • not more than six months in the future.
Note: If final action is not completed within the six-month period,
  • contact OIG to ensure that control of the case has not been lost
  • update the suspense date, not to exceed six months in the future, and
  • follow up with OIG every six months, updating the suspense date as needed.

X.iv.3.A.2.c. Referring a Case of Fraud to OIG

The table below describes the stages in the process for referring a case of fraud to OIG.
StageWho Is ResponsibleDescription
1authorization activityUses Optional Form 41, Routing and Transmittal Slip, plain bond paper, or a locally-developed fraud referral worksheet or memorandum to summarize the facts of the case, including
  • the identities of individuals involved, as well as possible witnesses
  • a description of the alleged violation or fraudulent activity, including the date, time, and location, if known, and
  • an estimate of the corresponding overpayment.
Notes:
  • Referrals should include, if available, the Social Security numbers of individuals involved and possible witnesses.
  • In the absence of a local agreement to the contrary, do not routinely refer the claims folder to OIG at the time of the initial fraud referral.
  • In unusual situations requiring immediate action, oral referrals may be made; however, these must later be confirmed in writing.
  • In any case involving multiple allegations, make a separate referral for each allegation, with each allegation cross-referenced to the other. (Example: Employee aids a claimant in submitting a fraudulent claim.)
2Veterans Service Center Manager, PMC Manager, or designeeContacts the OIG regional field office with jurisdiction over the RO that is handling the case to make arrangements for OIG to review the case to determine whether investigation and prosecution is warranted. Reference: For more information on determining which OIG regional field office to contact, see M21-1, Part X, Subpart iv, 3.A.3.a.
3OIG agentIndicates which documents need to be copied for use by OIG and the U.S. Attorney.
4Inspector GeneralNotifies the RO Director within 60 calendar days as to whether the case will be prosecuted.

X.iv.3.A.2.d. Cases of Fraud Involving CO or RO Employees

Use the table below to determine where to send additional copies of referrals for cases of fraud involving
  • Central Office (CO) employees
  • RO employees, or
  • fiduciaries.
If the case involves a(n) …Then forward a copy of the referral to …
CO employeeGeneral Counsel (02)
810 Vermont Avenue, NW
Washington, DC 20420
  • RO employee, or
  • fiduciary
  • Office of Field Operations (OFO) (201), and
  • District Counsel (02).
Note: OFO may require that copies or summaries of referrals of false statements or claims be forwarded to CO.

3. OIG Regional Field Offices

Change Date

June 18, 2020

X.iv.3.A.3.a. OIG Regional Field Offices

Use the table below to determine which OIG regional field office to contact to review cases to determine whether investigation and prosecution for fraud is warranted.
LocationRegional Field Office
  • Connecticut
  • Delaware
  • Maine
  • Massachusetts
  • New Hampshire
  • New Jersey
  • New York
  • Eastern Pennsylvania
  • Rhode Island
  • Vermont
Office of Inspector GeneralCriminal Investigations DivisionNortheast Field Office275 Chestnut Street, Room 122Manchester, NH 03101-2485Telephone: (603) 222-5866
  • District of Columbia
  • Maryland
  • North Carolina
  • South Carolina
  • Virginia
  • West Virginia
  • Western Pennsylvania
Office of Inspector General
Criminal Investigations Division
Mid-Atlantic Field Office
P.O. Box 27387
Washington, DC 20038Telephone: (202) 530-9193
  • Alabama
  • Florida
  • Georgia
  • Kentucky
  • Tennessee
  • Puerto Rico
Office of Inspector GeneralCriminal Investigations DivisionSoutheast Field Office7721 North Military Trail, Suite 5West Palm Beach, FL 33410-6410Telephone: (561) 422-7720
  • Colorado
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Michigan
  • Minnesota
  • Missouri
  • Nebraska
  • North Dakota
  • Ohio
  • South Dakota
  • Wisconsin
  • Wyoming
Office of Inspector General
Criminal Investigations Division
Central Field Office
P.O. Box 1454
Hines, IL 60140Telephone: (708) 202-2676
  • Arkansas
  • Louisiana
  • Mississippi
  • Oklahoma
  • Texas
Office of Inspector GeneralCriminal Investigations DivisionSouth Central Field Office6900 Almeda Road, Room 1073Houston, TX 77030Telephone: (713) 383-2793
  • Arizona
  • Southern California
  • Idaho
  • Montana
  • Southern Nevada
  • New Mexico
  • Utah
Office of Inspector GeneralCriminal Investigations DivisionWestern Field Office5120 Shoreham Place, Suite 200San Diego, CA 92122Telephone: (858) 404-8332
  • Alaska
  • Eastern California
  • Central California
  • Guam
  • Hawaii
  • Idaho
  • Montana
  • Northern Nevada
  • Oregon
  • Philippines
  • Washington
Office of Inspector General
Criminal Investigations Division
Northwest Field Office
1301 Clay Street, Room 1610N
Oakland, CA 94612Telephone: (510) 637-6360

4. Potential Fraud Against a VA Claimant



Introduction

This topic contains information on potential fraud against a VA claimant, including
  • notice requirements, and
  • complaints of financial exploitation in pension cases.

Change Date

October 13, 2021

X.iv.3.A.4.a. Notice Requirements

In cases where a claims processor notes the possible existence of fraud against a claimant, notify the claimant using a locally generated letter. Use the following language: We found evidence that you may have been the victim of fraud. Fraud occurs when an individual knowingly makes a presentation of false information to wrongfully obtain your VA benefits. To file a complaint with the Federal Trade Commission through the Federal Consumer Complaint Center, please visit consumercomplaints.fcc.gov. Additional information on protecting yourself against financial exploitation may be found at https://www.justice.gov/elderjustice/financial-exploitation.

X.iv.3.A.4.b. Complaints of Financial Exploitation in Pension Cases

In cases where a claims processor receives a specific complaint alleging a claimant was financially exploited (pension poaching), refer the complaint to Pension and Fiduciary Service, Quality and Oversight Team, at VAVBAWAS/CO/P&F TNG QUAL OVRST.

5. Requesting Laboratory Analysis of Evidence

Change Date

February 26, 2021

X.iv.3.A.5.a. Requesting Laboratory Analysis of Evidence

The Inspector General, Office of Investigation no longer provides laboratory analysis to stations to assist in resolving apparent discrepancies in evidence. However, a station, through its Support Services Division, may request and obtain contract-based laboratory examination, analysis, identification, and classification of any of the following material:
  • handwriting
  • typewriting
  • fingerprints, and
  • document authenticity.
Important: Contract-based laboratory analysis is appropriately requested only when apparent discrepancies in evidence cannot be resolved through existing policies and procedures relating to authenticity of evidence and fraud. Selected provisions are listed below. References: For more information on

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part X, Subpart iv, Chapter 3, Section A (U.S. government work, reproduced for reference). Browse all sections →