VA CRACKS DOWN ON “CLAIM SHARK” COMPANIES AS MORE THAN ONE MILLION CLAIMS FLAGGED FOR FRAUD PATTERNS
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When Army Veteran Michael Torres opened his mailbox last fall, he expected an update about his disability claim. Instead, he found a bill. A private company that had helped prepare his paperwork was demanding thousands of dollars, a cut of benefits he had already earned. He didn’t realize anything was wrong until a Veterans service officer told him something that made him feel taken advantage of... he never should have been charged at all. Michael vividly recalls holding that envelope in his hand, realizing it was a demand for money, leaving a lasting memory that still echoes far beyond his mailbox.
VA Orders Companies to Stop Charging Veterans
The Department of Veterans Affairs has sent warning letters to dozens of unaccredited companies accused of illegally charging Veterans for claims assistance. The letters came from the VA’s Office of General Counsel, which oversees accreditation for anyone assisting Veterans with benefits claims.
Under code 38 U.S.C. § 5905, unaccredited individuals or businesses may not charge Veterans for help filing claims. Accredited attorneys and agents may charge fees only after an initial claim decision has been issued. The warning letters instruct companies to stop charging Veterans immediately and warn that continued violations could lead to civil penalties or referral to law enforcement authorities.
VA Monitoring Suspicious Patterns Linked To Third-Party Assistance
VA Press Secretary Pete Kasperowicz told us that the department is examining suspicious activity tied to third-party claims assistance.
“VA is not a law enforcement agency but is fully committed to preventing bad actors from taking advantage of Veterans,” Kasperowicz said.
“When VA sees signs of fraud or suspicious behavior, it works with the appropriate law enforcement authorities to protect Veterans, families, caregivers, and survivors.”
While the VA does not conduct prosecutions, it refers potential misconduct to investigative agencies when warranted.
More Than One Million Claims Flagged For Pattern Review
The VA is using analytical tools to spot obvious similarities across large batches of claims. Disability claims are typically individualized to the Veteran. Service histories differ. Medical conditions vary. Symptom descriptions rarely match word-for-word.
When large clusters of claims contain nearly identical phrasing, those patterns can raise questions about whether consistent templates were used in their preparation.
A telltale sign that a non-accredited claims company has assisted with a veteran’s disability claim is a good ol’ copy-and-paste from someone else’s file. Repeated language alone does not establish fraud. But pattern analysis can prompt deeper review and, in some cases, referral for investigation.
Lawmakers Warned About the Industry For Years
Warnings about the dangers of claim sharks aren’t new. Lawmakers have been warning about this industry for decades.
At a Senate Veterans’ Affairs Committee hearing examining predatory claims practices, officials said more unaccredited companies were expanding nationwide. U.S. Senators Sheldon Whitehouse (D-RI), Angus King (I-ME), Jeanne Shaheen (D-NH), and Peter Welch (D-VT) introduced the VA Claim Sharks Effective Warnings Act, legislation to require the U.S. Department of Veterans Affairs (VA) to more effectively warn Veterans about non-accredited VA claims representatives, or “claim sharks.”
“Veterans in Maine and across the country rely every day on accredited veteran claims representatives for assistance with filing disability claims,” said King, a member of the Senate Veterans’ Affairs Committee.
“However, there are bad actors who proactively prey on veterans, offering assistance while illegally charging them high costs for services that Veterans Service Organizations perform for free.
The VA Claim Sharks Effective Warnings Act would require the VA to more aggressively warn veterans about unaccredited agents who are scamming our men and women who served. This commonsense legislation is a simple way to help protect veterans from predatory companies and ensure they receive their earned benefits.”
Multiple state attorneys general have also filed lawsuits alleging deceptive practices by benefits consulting firms, with more states banning claim shark companies from charging Veterans for claims assistance, with California being the most recent addition.
Veterans, Not Companies, Carry the Legal Risk
Many Veterans don’t realize that non-accredited companies are legally prohibited from representing Veterans before the VA, filing claims on a Veteran’s behalf, or communicating as authorized advocates. Using these services does not change a Veteran’s personal responsibility for the claim. Only the Veteran can sign and submit claims documents to the VA, and no outside company can take legal responsibility for this action.
Signing a claim is a legal commitment that confirms the accuracy and truthfulness of all information submitted. By signing, Veterans accept full responsibility for the information included, even if prepared with help from another party.
If the information submitted is inaccurate or misleading, liability is not transferred to a consultant or preparer. The Veteran alone is responsible for any inaccuracies or misrepresentations in the claim. Federal officials say they are not looking to punish veterans who filed claims in good faith, but they want Veterans to understand what their signature means.
Investigations Uncover the Financial Stakes
Investigative reporting by The War Horse and NPR has documented the financial stakes for Veterans who turn to non-accredited claims companies. In contracts reviewed by reporters, some veterans were charged fees totaling tens of thousands of dollars, with payment terms tied to multiple months of their disability benefits.
As federal scrutiny has increased, the VA has sent warning letters to dozens of companies as part of its expanding enforcement effort.
Those companies include:
- VA Claims Insider
- Trajector Medical (Formerly Vet Comp & Pen)
- VDC Bootcamp
- Veterans Disability Help
- Veterans Guardian VA Claim Consulting
- 180 Comprehensive Veteran Services
- 360 Veteran LLC
- A-1 VA Ratings
- American Veteran Consulting
- The Fulfilled Veteran Project
- Behavioral Health Consulting
- Blue Cord Veteran Services
- C&P Garage
- Delta Medical Care
- Eagle Rising Veteran Consulting
- Forever Our Heroes
- Freelance Veterans Advocates
- Gem Ratings
- Global Tekmed
- Just4Veterans
- KMD89 VA Claims Consulting
- REE Medical
- Seven Principles
- The Freedom Law Group
- United Veteran Benefits Agency
- VetComm
- Veteran Adviser Consulting
- Veteran Benefits Guide
- Veteran Ratings
- Veteran Advocacy Associates
- Veterans Claims Consulting
- Veterans Claims United
- Veterans for Veterans LLC
- VetLink Solutions
- Vets for Action
- Winning Strategy for Disabled Veterans
- Working Warriors Today
- Zeke’s Vets Helping Vets
Accredited Attorneys And Non-Accredited Companies Clash
As scrutiny intensifies, heated disagreements within the Veteran advocacy community have surfaced publicly on social media. Responding to VetClaims.AI (a non-accredited Veteran benefits claims company) in an online exchange, accredited VA benefits attorney William Simmonds criticized the business model used by some private claims consulting and technology companies.
“My problem with your system has and always will be that you’re operating a business in a legal space that purports to maximize Veterans’ benefits to which they’re entitled — a noble effort — but you can’t legally charge for it,” Simmonds wrote.
He emphasized that accredited representatives operate under strict professional safeguards. In the same exchange, Lukas Simianer, founder of VetClaims.AI, defended his company’s approach.
“There are certainly claim sharks,” he wrote, “then there are companies like us.”
How Veterans Can Verify Accredited Help
Veterans can confirm accreditation through the VA Office of General Counsel database. To protect themselves, veterans should first:
- Confirm accreditation before agreeing to pay fees
- Avoid companies requesting payment before a claim decision
- Seek assistance from Veterans Service Organizations at no cost
- Report suspicious activity to the VA Office of Inspector General
Most Veterans never see the line between informal consulting and legally authorized representation. That boundary is now a focal point for federal enforcement. The warning letters issued by the Department of Veterans Affairs reflect an improvement from responding to individual complaints to examining trends throughout the entire system. Reach out through the VA OIG Hotline to report occurrences of fraud.
Claim Sharks Are Still Circling
After learning he had been taken advantage of, misled, and charged illegally, Torres turned to an accredited Veteran service officer and resolved his claim at no cost. But he will never forget how he felt holding that envelope, nearly doubling over, sick to his stomach.
“I thought I was doing what everyone told me to do,” he said. “I didn’t know there were rules about who could charge you.”
Torres hopes no other Veteran opens an envelope and feels that same drop in their stomach. Benefits earned in uniform were never meant to arrive with a bill attached, or the threat of legal consequences just for seeking help in navigating them.
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BY NATALIE OLIVERIO
Veteran & Senior Contributor, Military News at VeteranLife
Navy Veteran
Natalie Oliverio is a Navy Veteran, journalist, and entrepreneur whose reporting brings clarity, compassion, and credibility to stories that matter most to military families. With more than 100 published articles, she has become a trusted voice on defense policy, family life, and issues shaping the...
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Natalie Oliverio is a Navy Veteran, journalist, and entrepreneur whose reporting brings clarity, compassion, and credibility to stories that matter most to military families. With more than 100 published articles, she has become a trusted voice on defense policy, family life, and issues shaping the...
