Trajector Medical, a Florida company that assists military veterans with disability claims, is under investigation by attorneys general in New York and Illinois for allegedly engaging in fraudulent and deceptive business practices. The investigations were disclosed in a letter sent to U.S. Bankruptcy Court in the Middle District of Florida on September 8, with state officials indicating they intend to pursue legal action against the company.
The investigations stem partly from an NPR report that documented how Trajector charges veterans as much as $20,000 for help filing initial disability claims, despite federal law requiring such assistance be provided at no cost. According to the investigation, the company uses technology called “CallBot” to access veterans’ benefits information by entering their social security numbers into VA phone systems. The company then uses that financial data to bill veterans, even in cases where Trajector did not directly contribute to benefit increases. State authorities are examining whether this constitutes misuse of personal information gathered from veterans.
Trajectory Medical filed for Chapter 11 bankruptcy protection five days before it was scheduled to default on approximately $63 million owed to Deutsche Bank. The company and its 21 affiliated entities employ over 450 staff members and reported combined income of nearly $280 million in 2025. Court filings list assets of approximately $405 million. The bankruptcy filing has temporarily halted two civil lawsuits seeking class action status on behalf of affected veterans, though it does not prevent state law enforcement investigations.
The company has denied the allegations, with a spokesman stating the organization “stands behind how we operate.” In bankruptcy court proceedings, company lawyers refused to answer questions about the state investigations. However, legal experts note that even with evidence of fraud, veterans may not receive priority in repayment during bankruptcy proceedings, as corporate bankruptcy law typically contains no special exception for fraudulent conduct.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI