VA Benefits Act Has Mile Wide Loophole for Fraud

If you thought the VA was a cheap date when it comes to acknowledging claims, consider the fraud they deal with constantly.

In a recent article, we talked about veterans being denied medical claims possibly because of VA budget concerns. That might make some sense when one considers that over $100 million has been ripped off from you – the taxpayers – since 2003 by contractors who masquerade as disabled vets. That’s a whole lot of money that could have been used to settle vets’ medical claims.

The story goes that the Veterans Benefits Act (2003) was designed to offer sole-source government contracts to disabled vets who owned businesses. Someone blew the whistle on this rip-off and there was a huge investigation which did precisely zero. The rip-offs still continue today. Widespread fraud every year and for some reason, the government lets it happen. Would they have a reasonable, rational explanation for that? Chances are they wouldn’t, but it might be interesting to hear what they have to say.

The government is in fiscal disarray and US taxpayers and vets are paying for that mess in a very personal way. If fraudulent contractors posing as vets continue to dine out on our money, what does that say about the checks and balances that are supposed to be in place to ensure fairness? What does that say about the government’s commitment to resolving the country’s financial mess?

Unfortunately, current laws don’t have any penalties in place for this particular type or kind of fraudulent scheme. In fact, if you can believe this, the awarding criteria for the program is based on the honor system. Yes, the honor system. All companies that are applying for funds have to do is check a box on a form that says they meet the VA criteria and they’re in business. Follow-ups, you ask? No, no one confirms their eligibility.

The bottom line here is that government contracting officers know about this and don’t do anything. There is a move afoot to introduce legislation to criminalize misrepresenting a business as being owned by a disabled vet, when in fact it is not. Someone certainly needs to do something about it, as the people who are pulling this stunt are stealing money that is supposed to go to vets.

Michael G. Smith is anArkansas personal injury lawyer and Arkansas accident lawyer, practicing personal injury law and veteran’s benefits in Arkansas. Learn more by visiting Arkansaslawhelp.com

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