New York and Illinois threaten action against company profiting from disabled vets

Florida‑based Trajector Medical, a company that bills military veterans up to $20,000 for help with disability claims, is facing new legal threats from the attorneys general of New York and Illinois. The states say they are investigating the firm for fraudulent, illegal and deceptive practices and plan to file lawsuits that could bring a class action against veterans who paid the company. The move follows an NPR investigation that revealed how Trajector makes millions from veterans despite warnings from the Department of Veterans Affairs that its business model may be unlawful. Federal law requires veterans to receive assistance with initial disability claims free of charge, yet Trajector has charged large fees and used questionable tactics to collect payments.

The allegations grew after NPR’s report uncovered a robo‑dialer system called “CallBot” that the company uses to call the VA benefits hotline. CallBot dials the hotline, enters a veteran’s social security number, and monitors for increases in VA benefit payments. When an increase is detected, Trajector sends a bill to the veteran, even if the company did not help secure the increase. The practice, which the New York and Illinois attorneys general say may involve misuse of personal data, is a key focus of their investigations. Trajector’s own filings show that it employs more than 450 staff across 21 affiliated companies, holds about $405 million in assets, and generated nearly $280 million in combined income in 2025. The company filed for Chapter 11 bankruptcy protection five days before a loan default, effectively putting civil lawsuits on hold.

In a September 8 letter to the U.S. Bankruptcy Court in the Middle District of Florida, the attorneys general said they expect the investigations to reveal that the money held by Trajector was collected through illegality and fraud. They urged the court to consider this evidence when overseeing the bankruptcy proceedings. Trajector has denied the accusations, stating it operates with integrity and focuses on the veterans it serves. The company’s spokesman, Steve Zenofsky, said, “We stand behind how we operate, and we’re focused on the veterans we serve.” If the investigations confirm the allegations, the states could move forward with lawsuits that may force the company to repay veterans or face criminal charges.

The outcome of the investigations and potential lawsuits will shape the future of veterans’ disability claim assistance. If Trajector is found to have engaged in deceptive practices, the bankruptcy court may order repayment to veterans and impose stricter oversight on similar firms. The case also highlights the broader issue of private companies profiting from veterans’ benefits, prompting calls for tighter regulation and clearer enforcement of the VA’s free‑service mandate. The attorneys general’s next steps will be closely watched by veterans, advocacy groups, and the legal community as the investigation continues.