Minnesota lawmakers target 'claim sharks' exploiting veterans

An assistant county veteran service officer in Goodhue County, Marissa LaCourt shared a story about an 87-year-old veteran she worked with and whose wife was in a care facility due to dementia.

“We worked on a veteran's pension. … I filed every form, and the claim was processed; I had expedited the claim due to the veteran's age being greater than 85. My veteran was approached by a firm and promised they could get this pension by the end of the month. The veteran paid this firm $2,000 and signed over a power of attorney. After 14 days, the claim shark had not processed the power of attorney, but they did take the veteran's money, and the claim was no more expedited than before.”

A federal fraud alert encourages veterans to be wary of unaccredited “claims consultants” who will charge veterans a certain percentage of future payments or fees to assist them with filing of an initial benefit for claim.

Rep. Emma Greenman (DFL-Mpls) is offering a “simple solution” in Minnesota to go after “claim sharks” who profit off veterans desperate to get earned benefits.

HF1855 would require federal accreditation of for-profit veterans benefit services providers and prohibit such providers from making a benefit guarantee. The want is in the governor’s budget proposal. Nine other states have such a law.

Approved Wednesday by the House Veterans and Military Affairs Division, the bill was sent to the House Judiciary Finance and Civil Law Committee, but not without some reservations.

Veterans can now get free benefit filing help though a county veterans service officer, the state Department of Veterans Affairs, and veterans service organizations, including the American Legion or VFW.

“They have earned this benefit, and through their taxes they are paying our salaries,” said Ben Johnson, deputy commissioner of programs and services at the Department of Veterans Affairs.

Kristy Janigo is legislative chair of the American Legion Department of Minnesota and the Minnesota Association of County Veterans Service Officers. She’s also an assistant county veterans service officer, a role in which she’s had to “debunk” claims made from businesses whose interest is more about profit.

“Examples of shady tactics unaccredited parties have used include: gaining access to veterans’ VA login and password, gaining access to their direct deposit information, promising a certain rating, stating they can speed up a claim, sending veterans to a private physician for a medical opinion while advising them not to see a VA provider, and even submitting an intent to file to establish an effective date while holding back the claim itself until as close to the year deadline as possible to maximize the backpay the agent will take a cut from,” she said.

“We should hammer the people that are taking advantage of our veterans,” said Rep. Bidal Duran (R-Bemidji).

However, he and other Republicans who nonetheless voted for the bill said it needs to be improved because a need exists for both county veterans service officers and legitimate outside help.

“This seems to be taking a broad-brush approach … and we have to make sure we’re looping in and allowing the legitimate businesses, many of whom are veterans, to help veterans too,” said Rep. Peggy Bennett (R-Albert Lea).

[MORE: Letters for and against the bill]

Ryan Scalmanini, director of VA disability compliance and analytics at Veterans Benefits Guide, was among bill opponents saying the proposal is unfair to veteran’s choice.

He said more than 70% of his clients tried navigating the process with a county service officer, but were denied their full benefit or felt the process took too long.

“We believe vets need more help in getting the benefits they deserve from their service, not more limitations on their options,” he said, noting his support for further guardrails for veterans choosing to use private services.

Connie Jones, a founding member of United Veterans Benefits Agency, suggested other reforms to better ensure system integrity could include prohibiting any initial or non-refundable fees, getting written confirmation that a veteran has been informed of free options, prohibiting direct solicitation, and prohibiting advertising or guaranteeing a successful outcome.