Alarming new ‘industry’ targets veterans’ for a cut of their compo

Vulnerable Australian military veterans are being targeted by “agents” in exchange for a cut of their pension and compensation.

Exclusive: Military veterans are being preyed upon by unscrupulous fee-for-service agents promising shortcuts to DVA benefits and compensation in exchange for a cut of their earnings.

The focus on Defence mental health in recent times has spawned a shock rise in “agents” and shelf-company advocacies offering promises of rapid access to DVA rebates and services.

But evidence presented to the Royal Commission into Defence and Veterans Suicide reveals the burgeoning new industry locks vulnerable veterans into long-term contracts that are as lucrative to operators as the veteran.

Former rank and file soldiers targeted by advocates for their DVA compensations. Picture: Keri Megelus

Such is the unregulated industry, there is evidence some vulnerable veterans are being aggressively pursued in hospitals and mental health wards to be signed up to releasing their pensions to agents.

It has also been uncovered some operators, all said to be veterans themselves, are based overseas but use local debt collectors and lawyers to intimidate clients into committing to contracts.

In its evidence, RSL Victoria said the veteran had been shockingly “commoditised” by the unregulated for-fee advocacy services.

Veterans Affairs Minister Matt Keogh said he was made aware of the issue as soon as he became minister. Picture: NCA NewsWire / Martin Ollman

“That the complexity of veteran compensation legislation now supports such a business model and desperate veterans are willing to see sizeable fees deducted from their entitlements – often as a result of a misguided belief that their claim will be processed faster – speaks volumes as to both the complexity of the DVA process and the unacceptable delay in having compensation claims determined.”

In its royal commission evidence, veteran owned law firm Operational Legal Australia said it was trying to help those caught out by operators.

“We have cases of veterans signing a power of attorney and having their pensions paid into bank accounts of these ‘fee-for-service’ advocates – action is needed now,” a spokesman said. Its social media post on the issue raised concerns nationally.

Phillip Thompson MP has heard from veterans beyond his Townsville electorate and from across Australia. Picture: NCA NewsWire / Martin Ollman

Opposition assistant defence spokesman and veteran Phillip Thompson said it was ridiculous there wasn't enough funding for DVA and RSL advocacy to help without resorting to profit operations.

He said there had been a few veterans who had gone through the DVA injury compensation process and worked out a baseline on how much some compo claims paid in lump sum from which they could take a cut for offering advice.

Australian troops deploying to an undisclosed remote base in north western Iraq to direct counter terrorism teams about Mosul in 2017. Picture Gary Ramage

“It’s abhorrent, compensation for illness or injuries caused by service should not go to for profit businesses who are leeching off veterans,” he said.

“I went through this process when I was wounded in Afghanistan and there weren’t any groups looking to take a percentage of your DVA compensation but now there are groups that are seeing the money making money, they are ‘for profits’ and some are even overseas.

Ryan Shaw a former Army sniper, at home in Wavell Heights, Brisbane. Picture: Steve Pohlner.

“I think it is very concerning and some groups are just ripping off our veterans who served their nation and now at a time that some are in the most vulnerable state.”

Veterans Minister Matt Keogh said the evolution of the advocacy system was being considered as part of veteran legislation reform.

Ryan Shaw, a former soldier and a vocal champion for veterans welfare, said he was deeply concerned by predatory practices of some advocacy groups.

“It is essential to address these predatory practices and protect the wellbeing and rights of

our ex-servicemen and women,” he said.

“By ensuring transparency, strengthening regulations, and providing education, we can

create a supportive environment that honours the sacrifices made by our ex-servicemen

and women.”