Fraud Reduction And Uncovering Deception (FRAUD) in VA Disability Exams Act

This Act may be cited as the Fraud Reduction And Uncovering Deception (FRAUD) in VA Disability Exams Act.

Chapter 53 of title 38, United States Code, is amended by adding at the end the following new section (and conforming the tables of section at the beginning of such chapter accordingly):

The Secretary shall carry out actions to identify fraudulent activity with respect to the submission to the Secretary of data on disability benefit questionnaire forms of the Department without regard to the source of such disability benefit questionnaire forms. Such actions shall include—

(1) implementing a process through which individuals responsible for processing claims for benefits under laws administered by the Secretary may—

(A) identify instances of fraudulent activity with respect to such disability benefit questionnaire forms; and

(B) submit to appropriate investigatory bodies, including the Office of the Inspector General of the Department, reports of suspected fraudulent activity identified pursuant to the process;

(2) establishing a recurring audit of such disability benefit questionnaire forms submitted to the Secretary without regard to the source of such disability benefit questionnaire forms; and

(3) with respect to such disability benefit questionnaire forms or such claims that the Secretary suspects may contain fraudulent information, informing the individual who submitted the disability benefit questionnaire form or claim of the suspicion of fraudulent activity.

To investigate suspected fraudulent activity identified pursuant to the process under subsection (a)(1), the Inspector General of the Department may use any authority applicable to an inspector general of the Federal Government that is not otherwise available to the Inspector General under laws administered by the Secretary that the Inspector General determines necessary for the investigation.

(1) Except as provided in paragraph (2), the Secretary may not, pursuant to an investigation of the Inspector General under subsection (b), reopen or change a final decision of the Department with respect to a claim for a benefit under laws administered by the Secretary.

(2) Paragraph (1) shall not apply in any case in which, pursuant to an investigation of the Inspector General under subsection (b), an individual is convicted by a court of competent jurisdiction of a crime relating to fraudulent activity in the submission to the Secretary of evidence supporting a claim for benefits under laws administered by the Secretary.

On an annual basis, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and the House of Representatives a report on the administration this section.

.