Veterans Guardian Cannot Legally Charge Fees for VA Disability Claims Preparation, Class Action Alleges

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A proposed class action alleges consulting firm Veterans Guardian has bilked disabled veterans out of tens of millions of dollars by charging illegal fees for the preparation, presentation and prosecution of VA disability benefits claims. 

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The 50-page lawsuit accuses defendant Veterans Guardian VA Claim Consulting, LLC of charging these illegal fees and a “substantial” contingency fee despite not being accredited by the United States Department of Veterans Affairs (VA). Despite the company’s name, Veterans Guardian “in fact preys on disabled veterans,” the suit scathes, alleging the consulting service agreement with which the defendant “entices” clients is peppered with “deceptive or false statements.” 

“All fees collected by Veterans Guardian are unlawful as they stem from conduct prohibited by federal law,” the case summarizes, adding that alleged “claims sharks” such as Veterans Guardian have come under increased scrutiny from the media, veterans’ advocacy groups and the VA itself. 

To obtain VA disability compensation, a veteran must file a claim with the VA, the suit relays. The case says that there are many veterans service organizations that are accredited as claims representatives by the VA and help veterans with preparing and filing disability claims free of charge. 

According to the case, accredited organizations such as the American Legion, Veterans of Foreign Wars and Disabled American Veterans, among many others of repute, were stakeholders in the passing of the Veterans Appeals Improvement and Modernization Act, which helped reform and simplify the processes involved in obtaining or increasing disability benefits from the VA. Once a veteran obtains their initial claim rating, they may continue with their veterans service organization of choice or, alternatively, go with a for-profit, VA-accredited agent or attorney, the suit adds. 

Crucially, the law plainly states that no one may assist a disability benefits claimant in the preparation, presentation and prosecution of their claim with the VA as an agent or attorney unless they are accredited by the VA for this purpose, the lawsuit states.

“Despite this clear prohibition, Veterans Guardian routinely and systematically assists claimants in the preparation, presentation, and prosecution of claims for VA benefits and charges a substantial contingency fee for doing so despite not being accredited by the VA,” the complaint alleges. 

Per the suit, the contingency fee charged by Veterans Guardian “equals five times the amount of any monthly VA Disability Compensation increase,” in excess of the amount that can be lawfully charged by a legitimate VA-accredited representative. 

Though the defendant asserts that its services and fees are above board, there exists no legal provision that allows an unaccredited entity such as Veterans Guardian to prepare VA benefits claims and be paid for doing so, the lawsuit contests. 

Further, the suit argues that Veterans Guardian’s business practices have caused many unsuspecting veterans to hire the company over accredited VA claims firms. 

The lawsuit goes on to allege that Veterans Guardian has submitted “false or misleading statements” to the House Committee on Veterans Affairs Subcommittees on Disability Assistance and Memorial Affairs and Oversight and Investigations. Per the suit, Veterans Guardian COO William Taylor testified in April 2022 under oath that the company had not received a cease-and-desist letter from the VA, a claim that was later determined to be false. 

The following month, the company’s vice president of government and public affairs, Brian Johnson, similarly claimed that Veterans Guardian had not received a VA cease-and-desist notice, the filing continues. Then, in June 2022, Veterans Guardian again told Congress that it had not received a cease-and-desist letter, the suit states. 

However, upon being reminded that false statements could be punishable by fines and up to five years in prison, Taylor “supplemented his testimony to Congress,” the case relays. 

The lawsuit looks to cover all veterans who paid Veterans Guardian a fee, or received an invoice from the company, in connection with preparing claims for VA disability compensation. 

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