Attorney General Issues Consumer Alert on Veteran “Pension Poaching” Scams Targeting Military Veteran Seniors and Their Families
By Anonymous — Wednesday, November 11th, 2015
LOS ANGELES – As we honor our military service members on Veterans Day, Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding scams targeting seniors who served in the military and their survivors. These scams have been reported to the California Department of Justice’s Public Inquiry Unit. “California’s veterans have made extraordinary sacrifices to keep our nation safe and uphold our most sacred values and freedoms,” said Attorney General Harris. “Sadly, many of our senior veterans are being targeted by scam artists seeking to take advantage of them for a quick profit. My office will continue to protect our veterans and ensure that predators who seek to profit from their service are held accountable.” These reported “pension poaching” scams prey on veterans and target the financial assistance offered through the Veterans Administration Aid and Attendance Program, which provides pension benefits to financially disadvantaged wartime veterans and their survivors over 65 years of age. Specifically, pension poaching scams involve unscrupulous insurance agents and their representatives posing as unpaid volunteers or accredited VA representatives who offer to help seniors apply for VA pension benefits. These insurance agents and their representatives lure seniors into buying an annuity or setting up an irrevocable trust to create a false appearance of financial hardship by attempting to conceal the senior’s assets. Insurance agents and their representatives charge high fees for these services, including undisclosed sales commissions that are paid to the purported volunteer. Targeted seniors may not be fully aware of the consequences of moving their assets into an annuity or irrevocable trust, such as strict withdrawal limitations leaving them without access to funds they may actually need for their care. Although a VA pension benefits application based on false financial need may be successful, those who receive this benefit may face significant financial and legal consequences if the concealed funds are discovered, including repayment of benefit amounts received. Seniors who receive other VA or government-sponsored benefits that require disclosure of funds held in annuities and irrevocable trusts are especially vulnerable to reversal of their VA pension benefit. WHAT TO LOOK OUT FOR WHAT TO DO IF SOMEONE OFFERS TO HELP YOU APPLY FOR VA PENSION BENEFITS HELPFUL RESOURCES You can also file a complaint with the California Department of Justice by visiting http://oag.ca.gov/contact/consumer-complaint-against-business-or-company. A searchable list of VA-accredited representatives is available at www.va.gov/ogc/apps/accreditation/index.asp or call 1-800-827-1000. For more information about VA Aid and Attendance pension benefits, visit www.benefits.va.gov/pension. |