Texas Attorney General sues company for alleged veteran benefits fraud
AUSTIN (KXAN) — Texas Attorney General Ken Paxton's office announced Tuesday he has sued an Austin company for allegedly "engaging in deceptive trade practices to defraud veterans seeking disability benefits," according to a release.
The company, VA Claims Insider, LLC., is an "education-based Coaching/Consulting company for disabled veterans exploring eligibility for increased VA disability benefits and who wish to learn more about that process," per the company's website. Paxton's office alleged the business' advertisements "mislead and confuse veterans as to the cost of these memberships."
“We respectfully disagree with the basis of the lawsuit filed by the Texas attorney general’s office. Founded by a veteran to serve veterans, VA Claims Insider is a mission-driven organization and stands behind that mission. We welcome the opportunity to present our case in court,” VA Claims Insider spokesperson Jeff Eller said in a statement.
"Even though VACI frequently uses the word 'free,' its 12-page contract charges exorbitant fees— including the requirement that a veteran pay VACI six times the amount of any disability increase he or she receives after signing up with VACI," the release claimed in part. "Consumer complaints detail how VACI attempted to force disabled veterans to pay it thousands of dollars for services the company did not provide or for successful claims that it had no role in filing."
Paxton's office alleged the company's advertisements didn't disclose VA Claims Insider isn't accredited by the U.S. Department of Veterans Affairs, can't offer claim preparations services and "that the VA previously sent a cease-and-desist letter to VACI for potentially violating the law."
In July, The Texas Tribune detailed complaints and investigations into the company, included former customers of the company who outlined their experiences and the costs they incurred through VA Claims Insider.
“It is deeply disappointing that this business took advantage of men and women who have given so much to our country,” Paxton said in the release. “I’m proud to advocate for justice for our Texas veterans at every opportunity.”