A pair of Department of Veterans Affairs officials who defrauded the VA for $400,000 will not face any criminal charges, despite an inspector general's request that they both face a criminal investigation.

In an inspector general report made public in September, Diana Rubens and Kimberly Graves were both accused of manipulating a VA program meant to ease the strain of moving agency employees between cities. The watchdog referred the matter to the Department of Justice for a criminal inquiry.

But prosecutors in the U.S. attorney's office for the District of Columbia ruled against pursuing charges late last week, the Houston Chronicle reported Tuesday, effectively eliminating any possibility that the two officials will face consequences for their actions.

The VA declined to fire Rubens and Graves in November. Although the agency planned instead to demote the embattled officials, a paperwork mistake spared the two from even that minimal punishment.

Members of the House Veterans Affairs Committee are keeping tabs on the situation, an aide said. However, the VA has not offered Congress any updates on the case other than a statement confirming the disciplinary process had restarted after the botched initial attempt to demote Rubens and Graves.