Caveat Emptor : Veteran Beware

In this era of increased litigation, one would think businesses would be more conscientious and consumers would do more investigation. Unfortunately, this is not the case, especially when it relates to veterans benefits, causes and representation.

Just this month, a 51-year-old woman in Illinois who was “helping” disabled seniors who could not manage their own affairs was charged with mail fraud. As representative payee for these individuals, she was using their Social Security and Veterans Benefits to pay her own bills, to the tune of $500,000.

Last year, the directors of Help Hospitalized Veterans (HHV), a non-profit, were sued for misrepresentations in solicitations for funds from people who have compassion for veterans. The lawsuit complaint requested that the president and board members of the charity be penalized $4,000,000. In addition to excessive compensation for board members, they also benefited from country club memberships and a condominium outside of Washington D.C. Less than one third of the donations received were actually used for veterans. According to tax records, HHV received $31 million in 2011 and $45 million in 2012.

On August 30, 2013, the Government Accountability Office (GAO) issued another report on the Veterans Affairs processes and procedures affecting veterans. This particular investigation was directed at the VA’s ability to verify the worthiness of accredited agents who represent veterans when filing claims. The GAO also attacked the limited education requirements and on-going monitoring of the program once an individual is accredited. The GAO’s concerns are that (1) many accredited agents are not trained competently to help veterans; (2) after obtaining accreditation, other than self-reporting, there are no other efficient ways to monitor and ensure that the agents remain in good standing; and (3) there are numerous individuals assisting veterans who are not accredited. The VA only has four dedicated staff members to receive, review and approve applications for accreditation and to monitor the more than 20,000 accredited agents, with no plans to expand the staff. Thus, it is clear that even though the VA has been requiring formal accreditation for anyone who helps veterans prepare, present and prosecute claims, there is no guarantee that the person is qualified, in good standing or even accredited.

Whether the veteran is relying on another to manage funds due to him, contributing to a favorite charity, or hiring a lawyer or agent to assist with filing a claim, it is incumbent upon the consumer – the veteran – to do a higher level of investigation when hiring a representative. Not all representatives are created equal. Not all non-profits attribute donations to the intended recipients. And not all people who “want to help” are benevolent.

With regard to checking out an agent to assist with a VA claim, use these seven recommendations:

1. Go to http://www.va.gov/ogc/apps/accreditation/index.asp to see if the person is accredited by the VA. If not, stay away, even if the person provided the best steak dinner and polished seminar on the subject, or is actually a veteran as well.
2. If the person is a lawyer, go to the state bar website and see if there are any bar complaints.
3. If the person is a financial advisor or insurance (annuity) sales professional, check the Securities Exchange Commission or state Insurance Commissioner’s office for any negative history. If not accredited by the VA, ask if a lawyer is involved, who the lawyer is and whether the lawyer is accredited by the VA. Also, go to the professional’s website and verify any credentials.
4. Does the person assist with “planning” and preparation of the VA application or just refer you to a veteran service organization after completing the planning? If the latter, who is going to represent you if there is a problem with the application?
5. If the professional says, “I won’t charge you anything” to help, ask more questions about compensation (i.e. from commissions or an annuity)? No one works for free.
6. Use people who have been personally referred to you by another person who has actually used that person. A referral from a senior community that holds seminars is not a referral – they may know the person, but they likely have not hired the person for their own planning.
7. Ask what organizations the person belongs to, and whether the organizations are reputable. For example, reputable organizations that provide training on VA benefits include: Veterans Advocates of America and Lawyers With Purpose, LLC.

If you would like more information about the lawyers that are members of Lawyers With Purpose, go to www.LawyersWithPurpose.com. The lawyers of this membership receive on-going, timely information about veterans benefits by the leading national VA Pension Planning expert, Victoria Collier, author of “47 Secret Veterans’ Benefits for Seniors” and co-founder of Lawyers With Purpose, LLC.