San Ramon Man Admits Embezzling Thousands From Disabled Veterans

SAN RAMON, CA — A former U.S. Department Of Veteran Affairs fiduciary from San Ramon pleaded guilty in federal court Thursday to embezzling funds from incompetent and disabled veterans.

In his guilty plea, Raj Kumar Ditta, 51, admitted that from 2010 through 2012, he entered into fiduciary agreements with the VA, agreeing to handle financial affairs for eight veterans or beneficiaries. The VA had determined the eight were not competent to handle their own financial affairs.

As a fiduciary, Ditta was required to establish bank accounts to receive each beneficiary’s VA income and to ensure the beneficiary’s debts were paid, according to the Department of Justice.

Ditta admitted that in each case, he set up a separate bank account for the beneficiary and, within months, began syphoning funds from the beneficiary’s account, federal prosecutors said.

Ditta moved thousands of dollars to his own personal account and used those funds for his own benefit. He misappropriated and embezzled no less than $39,500 from the veterans and beneficiaries, according to prosecutors.

Ditta was charged in May with one count of misappropriation of funds held by a fiduciary, and 15 counts of theft of government money. Under his plea agreement, he pleaded guilty to the misappropriation of funds count and, if he fully complies with the agreement, the remaining counts will be dismissed at sentencing, the DOJ said.

Ditta faces a maximum of five years’ imprisonment and a $250,000 fine. His sentencing is scheduled for November 14.