Noteboom The Law Firm

VA Fiduciary Program Lacks Sufficient Oversight

Once the Department of Veterans Affairs (VA) declares a veteran as being unable to manage their own affairs it appoints independent people to oversee the veterans' money. According to the New York Times, 111,407 veterans have more than $3.2 billion being managed by fiduciaries.

With fiduciaries earning 4% commissions on the accounts they oversee, there is $128 million being made and many people are starting to question if anyone is watching the fiduciaries for wrongdoing. The questioning may be warranted. The VA does not possess the ability to track the more than 100,000 veterans for which it is responsible.

Last year the VA Inspector General released a report stating the VA does not protect veterans from untrustworthy fiduciaries on the level they must be protected. Further, the VA rarely, if ever pursues investigations into fiduciaries accused of misusing funds.

Simply, the VA does not come close to providing the oversight of fiduciaries they should. According to the report, there were 315 investigations into fraud reports from October of 1998 to March of 2010. These investigations resulted in 132 arrests and more than $7 million in fines, penalties, restitutions, and recovered money.

VA Benefits representatives have stated families of veterans declared incompetent uneasy with the fiduciary appointed to take care of that veteran can request the VA review the appointment. Problems range from convicted felons being appointed fiduciaries to fiduciaries dying yet continuing to be paid for their services.