Florida company charged with defrauding vets

Trajector Medical charges disabled veterans as much as twenty thousand dollars for help with disability claims. Attorneys general in New York and Illinois say they have ongoing investigations and intend to commence legal action against the company for fraudulent, illegal and deceptive business practices.

Federal law requires free initial disability help

Federal law requires that veterans be given assistance with initial disability claims free of charge. An NPR investigation uncovered how Trajector makes millions off veterans despite warnings from the Department of Veterans Affairs that its business may be illegal.

Lawsuits filed, then company files for bankruptcy

After NPR's report, attorneys filed civil lawsuits seeking class action status on behalf of veterans. Trajector then filed for chapter eleven bankruptcy protection, which effectively put those lawsuits on hold.

States tell bankruptcy court money was collected illegally

In a September eighth letter to the U.S. Bankruptcy Court in the Middle District of Florida, state officials said investigations will reveal that money held by the company in bankruptcy was collected through illegality and fraud.

“It is expected that the investigations will reveal that money being held by [the company in the bankruptcy process] was collected through illegality and fraud.”

Company denies allegations in court

Trajector has denied those allegations in court. Trajector spokesman Steve Zenofsky told NPR, "We stand behind how we operate, and we're focused on the veterans we serve."

“We stand behind how we operate, and we're focused on the veterans we serve.”

CallBot system monitors veteran benefit increases

NPR's investigation showed Trajector uses a robo-dialer system called CallBot to dial into VA benefits phone hotlines, posing as the veteran by entering the vet's social security number to monitor increases in VA benefits payments.

Company bills vets even without helping them

Trajector uses financial information obtained through CallBot to send bills to thousands of veterans. If CallBot finds an increase in a veteran's benefits, it sends them a bill, even if Trajector didn't help them get that increase.

States investigating misuse of personal information

The practice of using CallBot is a focus of investigations in New York and Illinois. State officials wrote that the Attorneys General are investigating whether Trajector misuses the personal information it gathers from veterans through its use of callbots.

“The Attorneys General are also investigating whether Trajector misuses the personal information that it gathers from veterans through its use of 'callbots.'”

Trajector's massive financial operations revealed

Trajector Medical and twenty-one affiliated companies employ more than four hundred fifty staff and hold approximately four hundred five million dollars in assets. In two thousand twenty-five, their combined income was nearly two hundred eighty million dollars.

Company filed bankruptcy before loan default

Trajector filed for chapter eleven bankruptcy five days before it was poised to default on a loan balance of almost sixty-three million dollars owed to Deutsche Bank, according to court filings.

CEO bought luxury home before bankruptcy filing

CEO Jim Hill and his wife purchased a five point seven five million dollar oceanfront home in September two thousand twenty-five in Saint Augustine, Florida. Trajector lists this six bedroom, seven point five bathroom home as its principal offices in bankruptcy filings.

CEO says home purchase unrelated to bankruptcy

Trajector does not list the home as a company asset in bankruptcy filings. When asked why the CEO bought a five point seven five million dollar home less than a year before filing for bankruptcy, spokesman Steve Zenofsky said the two are not related in any way.

“the two are not related in any way.”

State investigations can proceed despite bankruptcy

While bankruptcy puts civil lawsuits on hold, it does not stop law enforcement from bringing charges. Attorney Jennifer Byrd, bringing one lawsuit against Trajector, said it's a huge development for attorneys general to step in because the bankruptcy court can't stop them from investigating.

“It's a huge development for these attorneys general to step in like this.”

Veterans may not be prioritized in bankruptcy repayment

Even with attorneys general alleging that veterans were victims of fraud, that does not put veterans at the front of the line of creditors to be repaid. Bruce Markell, a former bankruptcy judge and professor at Northwestern University Pritzker School of Law, said there is no exception for fraud in corporate bankruptcy.

“In a corporate bankruptcy, there is no exception for fraud.”

Veteran calls profits mind-blowing, demands change

Dustin Ingram, a former Army Ranger, said Trajector didn't do much to help him but sent him a big bill. He called the civil lawsuits and state investigations vindicating and said the scale of profits should be a wake-up call to the VA and policymakers.

“It's a mind-blowing amount of money.”

Ingram calls for better veteran benefit access

Ingram said if the military creates a vacuum, companies will fill it. He says the military needs to do a better job connecting veterans with benefits as they transition out of active service, making it very simple and very easy to receive benefits.

“If we create a vacuum, they will fill it.”