The U.S. Department of Veterans Affairs has launched a new website and call center to help veterans who believe they have been defrauded or charged exorbitant or improper fees. This includes former military members like Navy veteran David Rouse, who recently learned he owes a company nearly $9,000 for help filing for his disability compensation.
Rouse, a former boatswain’s mate and sea captain who served until 2015, suffers from several service-related illnesses, including post-traumatic stress disorder, sleep apnea and musculoskeletal problems, and was rated 80% disabled several years ago.
When his life circumstances recently changed, he decided to request a rating increase and turned to Trajector Medical, a company he found through a targeted ad that specializes in collecting medical information to support VA disability claims.
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He got his upgrade within two months. But he also received an unexpected, huge bill from Trajector for $8,829.05. He said he didn’t think he would be charged that much.
“I’m not saying I don’t want to pay; I’ll pay a percentage. But almost three times my backlog? That’s highway robbery,” Rouse said in an interview with Military.com.
The VA announced earlier this month that its fraud prevention and complaint program, called VSAFE, has a new website and hotline (1-833-388-7233) that veterans and family members can use to learn about fraud schemes and report potential scams.
The Veterans, Servicemembers and Families Fraud Evasion (VSAFE) program was launched last year by the White House Interagency Policy Council to figure out how to protect veterans from fraud. The improved website and call center are the fruits of that effort, which came with additional resources from numerous federal agencies, including the Department of Defense, Internal Revenue Service, Social Security Administration and Federal Trade Commission.
Fraud and predatory practices have become a major problem at the VA following the passage of the PACT Act. This law expanded health care and benefits to millions of veterans who were exposed to environmental hazards while serving in certain areas. According to the VA, promising disability benefits to so many beneficiaries could make veterans and their families “targets for fraudsters.”
“We know that more veterans are receiving VA benefits than ever before, which unfortunately means more criminals are trying to steal those benefits. That’s why we’re introducing these tools: to give these heroes every tool the federal government has at their disposal to protect themselves and their families,” VA Secretary Denis McDonough said in a statement on August 9.
By law, companies are prohibited from charging veterans fees for initially filing disability compensation claims, and they are prohibited from assisting veterans with any claims unless they are accredited by the VA Office of General Counsel.
The VA recommends that veterans in need of assistance contact an approved veterans service organization, state or local veterans service representative, or licensed claims adjuster.
Since the passage of the PACT Act, the number of for-profit companies charging fees for these services has grown exponentially, with no cap on the amount they can charge.
The companies say that given the large number of disability benefit applications to the VA and the backlog of processing them – nearly 1 million pending claims, a quarter of which were more than 125 days old this month – they are offering options for those who don’t understand the system or don’t have the energy to fight for approval.
They have formed a government advocacy group, the National Association for Veteran Rights, to promote the industry and support legislation allowing companies to provide services.
The association is headed by Peter O’Rourke, former acting VA Secretary and VA Chief of Staff under the Trump administration.
“We can do better. This industry association advocates for ethical and transparent business practices for companies that support our veterans,” O’Rourke says in a video on the group’s website.
Veterans advocates argue that these companies’ business practices are predatory and illegal because non-accredited companies are not allowed to help veterans file claims.
“This scourge has taken on a whole new life during COVID-19, particularly affecting veterans, survivors and military caregivers who did not know where to turn for assistance with benefits,” said Ryan Gallucci, executive director of the VFW’s Washington office, during a press conference last November in Washington, DC.
“The bottom line is this: Predatory shark damage companies are engaging in illegal activities,” VFW National Commander Duane Sarmiento said during the same press conference. “There is no gray area here, no matter how much money they want to spend. Their latest collusion is a desperate attempt to evade responsibility.”
Until 2006, unaccredited individuals or businesses that charged VA claims assistance fees had to pay penalties and fines. Without those penalties, however, the VA can only send cease-and-desist letters to businesses and must work with local, state and other federal law enforcement agencies to prosecute those who violate the law. According to the VA, it has sent more than 40 such letters this fiscal year, and 18 to unaccredited businesses and individuals in fiscal year 2023.
The VA has asked Congress to reinstate criminal prosecutions against companies that file illegal claims, but until then it has created VSAFE to educate veterans about the process and potential scams.
“We strongly advise you to be careful when selecting a representative and to make sure they are accredited by the VA. There are currently more than 14,000 accredited individuals in the VA system,” said David Barrans, chief counsel for benefits law in the VA’s Office of General Counsel, during a press conference last September.
The Department has also launched an awareness campaign within the Veterans Benefits Administration to educate employees about these companies, which the VA calls “claims predators,” as opposed to “claim sharks,” the term preferred by accredited veterans service organizations.
“Aggressive communications via email, phone and/or text messages attempt to trick veterans into signing legally binding contracts that are not to their benefit. They advertise expedited claim processing times and/or guarantee higher disability levels in exchange for their paid services. These fraudulent schemes target veterans’ hard-earned benefits and may impose excessive fees on them,” said an internal email obtained by Military.com.
Rouse, the veteran who owes Trajector more than $8,000, said he couldn’t find a copy of his contract but asked for one. He can’t remember what it said, but according to Steven Zenofsky, Trajector Medical’s director of communications, the company is asking for five times the monthly VA pay raise.
Zenofsky said the fees are listed in a service agreement presented to the veteran before he or she signs, and the company does not charge upfront fees.
“Trajector Medical’s number of satisfied customers continues to rise, as evidenced by the increasing number of online testimonials from veterans. This increase in customer satisfaction is a testament to our commitment to ensuring our customers are well informed at every stage of our service,” Zenofsky said in an email to Military.com.
Rouse said he initially contacted two different recognized veterans assistance organizations. One said they would help him get a 100% disability rating and an individual disability rating, which meant he wouldn’t be able to keep a job and collect disability benefits. The other, he said, didn’t seem interested because he wasn’t a member of a local branch.
So he turned to Trajector, which he said helped him schedule the necessary doctor’s appointments but didn’t seem to do much else.
“I did all the legwork and they felt like they had an important role to play. I told them they should be ashamed of what they were doing,” Rouse said.
He added that companies like Trajector provide a necessary service, but there should be a cap on the amounts they charge.
Lawyers who help process Social Security claims, for example, can seek up to 25% of benefits retroactively from the time of filing or $7,200, whichever is less. The cap is set to rise to $9,200 in November.
“If they really wanted to help, they wouldn’t ask for so much money,” Rouse said.
Representative Chris Pappas (D-N.H.) and Republican Senator John Boozman (Ark.) introduced a bill in their chambers last year that would impose penalties on individuals or companies that solicit, contract and bill “unauthorized” fees for preparing or applying for VA benefits.
The Anti-Unaccredited Representative Fraud (GUARD, VA Benefits Act) has 258 other sponsors in the House and Senate, but has not passed through committees, meaning it is unlikely to be considered this year.
“The VA must use all enforcement tools at its disposal and request those it needs to better protect veterans from wrongdoers who seek to take advantage of them,” Pappas and Boozman wrote in a letter to McDonough in September about the bill.
Another bill, the Preserving Lawful Utilization of Services for Veterans Act (PLUS), sponsored by Representatives Jack Bergman (R-Michigan) in the House and John Kennedy (R-Louisiana) in the Senate, would change the accreditation process to allow companies to continue operating legally and would impose criminal penalties on companies that do not remain accredited.
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