A former Department of Veterans Affairs (VA) employee from California has been indicted for allegedly helping veterans fraudulently obtain disability benefits.
Daniel Rikkels, 55, of Chula Vista, was indicted by a federal grand jury on Nov. 14 for crimes he purportedly committed as a VA employee who formerly reviewed and approved disability claims.
The 33-count indictment claims that since 2020, he knowingly and intentionally instructed veterans to provide false, exaggerated and misleading disability claims of service-related injuries to support such claims. He also allegedly instructed veterans to alter documents submitted during the claims process.
The alleged false claims led to veterans fraudulently obtaining millions of dollars in VA disability payments and backpay, according to the U.S. Attorney’s Office of the Southern District of California, with Rikkels himself receiving millions of dollars in payments.
“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,” U.S. Attorney Adam Gordon said in a statement. “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.”
The case was investigated by the VA Office of the Inspector General and the FBI. Military.com reached out to the Department of Justice for comment.
Hundreds of Thousands of Dollars At Stake
The indictment states that Rikkels, who was a VA employee until June 2025, negotiated with veterans for assistance in their VA claims and demanded payment from them—taking action on their claims in violation of government ethics laws.
He’s also alleged to have frequently requested that veterans who lived in relative proximity to him and where he worked make payments in cash so he in turn would pay less in taxes.
His charges and potential penalties are as follows:
- Conspiracy to commit wire fraud, punishable by up to 20 years in prison and a $250,000 fine.
- Wire fraud, punishable by up to 20 years in prison and a $250,000 fine.
- Bribery of a public official, punishable by up to 15 years in prison and a $250,000 fine.
- Willfully engaging in acts affecting a personal financial interest, punishable by five years in prison and a $250,000 fine.
- Laundering of monetary instruments, punishable by up to 20 years in prison and a $500,000 fine.
- Money laundering, punishable by 10 years in prison and a $250,000 fine.
Court records reportedly show that during a three-month period between February and May of this year, Rikkels met with at least four local veterans and received $57,000 in total cash payments from them.
One day before being indicted, agents seized more than $280,000 in cash after searching Rikkels, his vehicle, and his residence.
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