A federal grand jury in San Diego has indicted Daniel Rikkels, a former Department of Veterans Affairs (VA) employee from Chula Vista, on charges related to a scheme that allegedly helped veterans fraudulently obtain disability benefits. The indictment outlines 33 counts against Rikkels, who is accused of instructing veterans to submit false and exaggerated claims of service-related injuries while he was responsible for reviewing and approving such claims at the VA.
The indictment alleges that since 2020, Rikkels directed veterans to provide misleading information and alter documents during the disability claims process. As a result, millions of dollars in VA disability payments and backpay were obtained fraudulently by veterans, with Rikkels receiving millions in return for his assistance.
Rikkels remained employed by the VA until June 2025. During his tenure, he reportedly negotiated directly with veterans for payment in exchange for help with their claims while simultaneously taking official action on those same cases. This conduct is alleged to have violated government ethics laws.
According to court records, between February and May 2025 alone, Rikkels met with at least four local veterans and collected $57,000 in cash payments. On November 13, 2025, agents executed searches of Rikkels’ person, vehicle, and residence, seizing 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.”
The case is being prosecuted by Assistant U.S. Attorneys Joseph S. Smith and Daniel F. Casillas.
Rikkels faces charges including conspiracy to commit wire fraud (maximum penalty: twenty years in prison and $250,000 fine), wire fraud (twenty years), bribery of a public official (fifteen years), willfully engaging in acts affecting a personal financial interest (five years), laundering monetary instruments (twenty years; $500,000 fine), and money laundering (ten years).
The investigation is being conducted by the Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation.
Authorities remind the public that all defendants are presumed innocent unless proven guilty. Individuals with information about unlawful activity or abuse involving VA programs can report it through the VA Office of Inspector General Hotline at 800-448-8244 or online at www.va.gov/oig/hotline.
