States threaten action against company earning millions off disabled vets
A Florida company that charges military veterans as much as $20,000 for help with disability claims is being accused by authorities in New York and Illinois of defrauding those veterans.
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that → threaten → veterans
Attorneys general in both states say they have ongoing investigations and "intend to commence legal action" against the company, Trajector Medical, "for fraudulent, illegal and deceptive business practices."
The move comes after an NPR investigation uncovered how Trajector makes millions off of veterans despite warnings from the Department of Veterans Affairs that its business may be illegal.
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business → say → Affairs
Federal law requires that veterans be given assistance with initial disability claims free of charge.
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veterans → require → charge
After NPR's report, attorneys filed civil lawsuits seeking class action status on behalf of veterans.
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attorneys → file → veterans
Trajector then filed for chapter 11 bankruptcy protection, which effectively put those lawsuits on hold.
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which → file → hold
Now, the attorneys general are telling the bankruptcy court that they believe Trajector has been making its money illegally.
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Trajector → tell → money
Their ongoing investigations were revealed in a Sept. 8 letter from state officials to the U.S. Bankruptcy Court in the Middle District of Florida.
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investigations → reveal → Florida
"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," they told the court.
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they → expect → court
The company has denied those allegations in court.
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company → deny → court
"We stand behind how we operate, and we're focused on the veterans we serve," Trajector spokesman Steve Zenofsky told NPR.
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Zenofsky → stand → NPR
In particular, NPR's investigation showed how Trajector uses a robo-dialer system it calls "CallBot" to dial into a VA benefits phone hotline, effectively posing as the veteran by entering the vet's social security number to monitor increases in VA benefits payments.
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it → show → payments
The company then uses the financial information it obtains to send bills to thousands of vets who once signed up as clients.
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who → use → clients
If CallBot finds an increase in a veteran's benefits, it sends them a bill — even if Trajector didn't help them get an increase in benefits.
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them → find → benefits
That practice is one focus of the investigations in New York and Illinois, according to the letter.
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practice → accord → letter
"The Attorneys General are also investigating whether Trajector misuses the personal information that it gathers from veterans through its use of 'callbots,'" they wrote.
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they → investigate → callbots
Trajector is not the only claims company to use this technology, according to collaborative reporting between NPR and The War Horse.
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Trajector → use → NPR
Trajector files for bankruptcy
Bankruptcy court records provide insight into Trajector's finances and operations.
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records → provide → finances
Trajector Medical and 21 affiliated companies are included in the filings.
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Medical → include → filings
Together they employ more than 450 staff and hold approximately $405 million in assets.
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they → employ → assets
In 2025, their combined income was nearly $280 million.
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income → combine → 2025
Most primarily support Trajector's VA claims work but also include a business that prepares Social Security claims.
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that → support → claims
The company filed for Chapter 11 bankruptcy five days before it was poised to default on a loan balance of almost $63 million owed to Deutsche Bank, according to court filings.
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it → file → filings
Chapter 11 protection allows Trajector to continue business while reorganizing its finances, freezing lawsuits and consolidating claims from creditors.
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Trajector → allow → creditors
"This restructuring is a strategic step to strengthen our financial position so we can continue carrying out our mission: helping Americans with disabilities pursue the benefits for which they qualify for," CEO Jim Hill said in a statement on the company's website.
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Hill → strengthen → website
CEO buys property before bankruptcy
Hill and his wife purchased a $5.75 million oceanfront home in September 2025, according to local property records.
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Hill → buy → records
In bankruptcy court filings, Trajector lists that 6 bedroom, 7.5-bathroom home in the beachside community of Saint Augustine, Fla., as its "principal offices."
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Trajector → list → offices
Trajector's corporate headquarters is located 80 miles inland in Gainesville.
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headquarters → locate → Gainesville
Trajector does not list the home as a company asset in the filings.
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Trajector → list → filings
Asked why the CEO bought a $5.75 million home less than a year before the company filed for bankruptcy, Zenofsky said "the two are not related in any way."
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two → ask → way
Bankruptcy stalls lawsuits, but not state investigators
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Bankruptcy → stall → lawsuits
The two lawsuits, filed separately in Florida earlier this year, allege the company engaged in deceptive and unfair trade practices by charging veterans for the preparation of initial VA disability claims.
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company → file → claims
Federal law requires such assistance be offered for free by accredited providers.
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assistance → require → providers
Trajector acknowledges it lacks that accreditation in the contracts it has veterans sign.
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veterans → acknowledge → contracts
But while the bankruptcy puts those lawsuits on hold, it does not stop law enforcement from bringing charges.
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it → put → charges
"It's a huge development for these attorneys general to step in like this," said Jennifer Byrd, an attorney bringing one of the lawsuits against Trajector on behalf of veterans.
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Byrd → step → veterans
"The bankruptcy court can't stop them, they can move forward and keep investigating," she said.
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she → stop → them
In their letter, the attorneys general say the fees the company charged veterans "are illegal under state and federal law."
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company → say → law
The state investigators therefore expect to show that money Trajector says it has on hand to pay back creditors was made through "illegality and fraud" and that it "should not be considered property of the estate."
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it → expect → estate
In a bankruptcy hearing the day after the states sent their letter, a lawyer for Trajector, Edward Peterson, refused to answer questions about the investigations.
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lawyer → send → investigations
"The letter speaks for itself.
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letter → speak → itself
…and 35 more, not listed.
The Aporia
