Trajector Faces Fraud Investigations
PHOTO CAPTION: Illustrative photo: The Department of Veterans Affairs seal is displayed at a VA benefits claims intake office at Marine Corps Base Camp Lejeune, North Carolina, on March 18, 2024. This image does not depict Trajector Medical. U.S. Marine Corps photo by Lance Cpl. Alyssa J. DeCrane.
A Florida company that has charged disabled veterans as much as $20,000 for help with VA disability claims is now under investigation by attorneys general in New York and Illinois, with both states saying they intend to pursue legal action over alleged fraudulent, illegal and deceptive practices.
Trajector Medical has denied the allegations.
The investigations became public through a Sept. 8 filing in Trajector's Chapter 11 bankruptcy case and were detailed Thursday in new reporting from NPR.
State officials told the bankruptcy court that their investigations concern the fees Trajector charged veterans and the methods the company allegedly used to determine when a veteran's disability benefits increased.
One of the practices under scrutiny involves an automated system Trajector called CallBot.
According to NPR, CallBot used identifying information provided by veterans to call a Department of Veterans Affairs benefits hotline and check whether a veteran's monthly benefits had increased.
When the system detected an increase, Trajector could use that information to generate a bill for the veteran.
NPR reported that some veterans received bills even when they said Trajector had little or no involvement in obtaining the benefits increase.
The attorneys general specifically told the bankruptcy court they are investigating whether Trajector misused veterans' personal information through its use of the automated calling system.
The states also contend that Trajector collected money by providing services for VA benefits claims that it was not legally permitted to charge for.
Federal law generally prohibits charging veterans for assistance preparing an initial VA benefits claim. VA accredited attorneys and claims agents may charge fees for certain services later in the claims and appeals process.
Trajector acknowledges in its contracts that it is not accredited by the VA.
The company has disputed the states' accusations.
"We stand behind how we operate, and we're focused on the veterans we serve," Trajector spokesman Steve Zenofsky told NPR.
A lawyer representing Trajector also denied the allegations during the bankruptcy proceedings.
The financial scale of the business is substantial.
Trajector Medical and 21 affiliated companies reported nearly $280 million in combined income during 2025, according to bankruptcy records reviewed by NPR. The companies employ more than 450 people and listed approximately $405 million in assets.
Trajector filed for Chapter 11 bankruptcy protection on July 23.
According to court records, the filing came five days before the company was expected to default on nearly $63 million remaining on a loan owed to Deutsche Bank.
Chapter 11 allows the company to continue operating while it reorganizes its finances. The filing also paused civil lawsuits filed by veterans seeking class action status.
The bankruptcy does not prevent state law enforcement agencies from continuing their investigations.
In their filing, New York and Illinois officials told the court that they expect their investigations to show that some money held by Trajector was collected through alleged illegality and fraud.
Those claims have not been proven in court.
Individual veterans have also described receiving large bills from the company.
Former Army Ranger Dustin Ingram told NPR that Trajector billed him approximately $4,500 after he sought assistance with his VA disability benefits.
Ingram, who served two tours in Afghanistan, said he believed the company did little to help him obtain the increase and refused to pay the bill.
Other veterans interviewed by NPR have said they were satisfied with Trajector's assistance and credited the company with helping them increase their disability benefits.
Trajector has previously said veterans who are dissatisfied with its service should contact the company directly.
The investigations come amid broader concern about businesses that charge veterans large fees for disability claims assistance.
The Department of Veterans Affairs has repeatedly warned veterans about what it calls "claims predators," companies or individuals that charge veterans for services that can often be obtained free through the VA or accredited veterans service organizations.
VA advises veterans to verify that anyone helping with a claim is properly accredited before providing personal information or agreeing to pay fees.
For Trajector, the immediate question now moves beyond private lawsuits.
Attorneys general in two states say their investigations are continuing and that they intend to take legal action.
(Source: OAF Nation)
