Statement for the Record

The Honorable Michael J. Missal

Former Inspector General for the Department of Veterans Affairs

Senate HSGAC Hearing “Exposing Fraud in America”

July 15, 2026

For almost nine years, from May 2, 2016, until January 24, 2025, I served as the Inspector General for the Department of Veterans Affairs (VA). The Inspector General Act of 1978 granted independent Inspectors General specific investigative and law enforcement powers. One of the priorities of my office was to fight fraud, waste, and abuse that impacted veterans and the programs and operations at VA, the second largest federal agency. During my tenure, we successfully investigated thousands of fraud cases, holding perpetrators accountable and recovering monetary losses to VA.

In addition, I chaired the Investigations Committee of the Council of the Inspectors General on Integrity and Efficiency (CIGIE) for six years. This Committee helped coordinate the law enforcement activities of the more than 3,000 special agents in the CIGIE community and promoted best practices and innovative investigative techniques. The CIGIE Investigations Committee also provided invaluable training programs for both new and experienced criminal special agents.

I commend this Committee for highlighting the challenging and complex problem of fighting fraud. Our work at the VA Office of Inspector General (OIG) and CIGIE recognized that fraud schemes are rarely obvious. Fraudsters typically employ sophisticated concealment techniques to avoid detection. To best combat fraud, the VA OIG employed a multifaceted approach of detection, investigation, and continuous prevention. With respect to detection and investigation, the VA OIG and other OIGs across the government need adequate resources to hire and train a significant number of criminal investigators. To be successful, these agents must use advanced investigative practices and cutting-edge technologies combined with access to critical databases and effective digital and cyber tools. These efforts must include reactive and proactive initiatives, deep coordination between various law enforcement agencies, and strong support from the Department of Justice (DOJ) and other prosecutors. It takes time and an unwavering commitment of resources to gather the evidence to make a case that can meet the “beyond a reasonable doubt” standard needed for a criminal conviction.

An example of a proactive criminal investigation from my office is instructive with respect to the level of effort and the resources needed to identify and address potential fraud. We were concerned that veterans who were commercial pilots licensed by the Federal Aviation Administration (FAA) were collecting disability compensation from VA for conditions, such as certain cardiac ailments, that could have excluded them from having a commercial pilots license. We obtained a list from the FAA of all commercial airline pilots in the United States and compared it to a list we obtained from the Veterans Benefits Administration (VBA) of all veterans receiving disability benefits for a condition that could disqualify them from having a commercial pilots license. We found approximately 5,000 common names on the two lists. However, that was just the beginning of the investigation. From there, more than a dozen special agents and several of our VA OIG physicians meticulously reviewed representations made by the pilots to the FAA, as well as their medical records in VBA files. We also reviewed FAA licensing policies and procedures and interviewed some of the pilots. We worked closely with DOJ prosecutors throughout the investigation. Ultimately, DOJ successfully prosecuted a number of the pilots for fraudulently receiving disability benefits while the FAA administratively handled many of the others to ensure public safety. Hopefully, this is the type of creative, proactive initiative that can serve as a deterrent for future misconduct.

With respect to prevention, publishing and promoting fraud alerts are a valuable tool to warn the public of potential frauds and provide guidance on how to follow up if a crime is suspected. Organizations must establish strong compliance and detection programs for possible frauds by identifying outliers or anomalies. A hotline where employees and members of the public can make complaints is also critical. For hotlines to work most effectively, whistleblowers need confidence that their complaints will be taken seriously, that they can make them anonymously if they desire, and that they will be protected from retaliation.

While fighting fraud of all types is a stated priority of this Administration, I am concerned that Congress and the Administration are not allocating sufficient resources to accomplish this difficult and complex goal. For example, according to its most recent Semi-Annual Report to Congress, the VA OIG has about 15 percent less staff than it did at the end of 2024. Fighting fraud most effectively takes a commitment and requires many specialties aside from criminal investigators, including forensic auditors, healthcare professionals, and data analysts. OIG offices that play an important role in combatting fraud are facing reduced appropriations and staffing reductions. This Committee should ensure that OIGs and other law enforcement agencies have the appropriate resources necessary to fight fraud, waste, and abuse.

I thank the Committee for the opportunity to submit this Statement on such an important issue.