Arizona is taking significant steps to safeguard veterans from fraudulent practices, with a recent settlement marking an important milestone. A company accused of misleading veterans in their benefits application process has agreed to pay $2 million, following a lawsuit by Arizona Attorney General Kris Mayes. Despite the settlement, Mayes emphasizes the necessity for stronger legislative measures to protect veterans.
VetLink, operating from 2019 to 2024, purportedly assisted veterans with disability claims for a fee, yet lacked accreditation from the U.S. Department of Veterans Affairs (VA). The lawsuit alleges that VetLink utilized deceptive tactics, claiming to offer services exclusive to VA-accredited entities, thereby violating Arizona’s consumer protection laws.
“My office will not allow companies to exploit veterans who are simply trying to access the benefits that they bravely earned,” Mayes asserted.
The Allegations
In 2022, VetLink co-founder Gerard Rodriguez received a cease and desist letter from the VA, highlighting the illegality of preparing claims for veterans without accreditation. Despite a second warning in 2023, the company continued its services until March 2024, allegedly charging veterans fees five times their benefits increase, reaching up to $20,000.
The Arizona Department of Veterans Services offers free assistance through its counselors, but resources are limited with only 60 counselors for 500,000 veterans in the state, as noted by Director John Scott.
Call for Legislative Action
Mayes is urging the Arizona Legislature to implement stricter laws against unaccredited service providers. Rep. Stacy Travers (D-Phoenix), an Army veteran, has sponsored bills to establish state-level regulations requiring VA accreditation for such consultants, yet these efforts have faced opposition from industry lobbyists.
Travers described how her bill was diluted during legislative hearings, saying, “I clocked what was happening, and I looked over at the committee chair and said, ‘this just basically guts the bill,’” with the chair acknowledging the impact.
Rep. Aaron Marquez (D-Phoenix) expressed the need for increased funding for the Department of Veteran Services to ensure veterans receive adequate support without incurring excessive costs.
The Settlement Details
Under the agreement, VetLink’s founders are to pay $1.95 million, with $1.2 million allocated for restitution to affected veterans. The remaining $700,000 will enhance the Consumer Protection-Consumer Fraud Revolving Fund, aiding various consumer protection efforts. Mayes plans to request funds to hire specialized staff to tackle veteran-targeted scams.
Julia Romero Gusse, a former VA advisor, emphasized the ongoing threat of fraudulent operators, stating, “They’re renaming, rebranding and still doing the same crimes.”
VetLink’s acquisition by REE Medical in June 2024 has raised questions about its future operations. Although REE Medical provides services to support VA claims, it is not VA-accredited and does not offer legal or medical advice, according to its website disclaimer. The settlement prevents VetLink founders from preparing veterans’ benefits applications without VA accreditation.
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