States Threaten Legal Action Against Trajector Medical Over Alleged Fraud Against Disabled Veterans
Attorneys general from New York and Illinois are threatening legal action against Trajector Medical, a Florida-based company accused of defrauding disabled veterans by charging them for assistance with initial VA disability claims, which federal law mandates must be provided free of charge by accredited providers. This development follows an NPR investigation into Trajector's practices, including its use of a 'CallBot' system to monitor veterans' VA benefits and subsequently bill them, even if the company did not contribute to an increase in benefits. Trajector Medical, along with 21 affiliated companies, recently filed for Chapter 11 bankruptcy protection, which has temporarily halted existing civil lawsuits seeking class-action status on behalf of veterans. However, the attorneys general have informed the U.S. Bankruptcy Court in the Middle District of Florida that their ongoing investigations suggest the company's funds were obtained through 'illegality and fraud,' asserting that these funds should not ...