A federal judge has handed a major pretrial victory to military veterans after ruling that a North Carolina consulting firm ran an illegal, predatory business model.
Chief District Judge Catherine Eagles ruled that Pinehurst-based Veterans Guardian VA Claim Consulting violated the state's Unfair and Deceptive Trade Practices Act. The court found the company charged veterans steep fees to prepare and file disability claims despite lacking mandatory federal accreditation from the Department of Veterans Affairs.
Federal law strictly bars unaccredited entities from charging veterans for help navigating benefits. The judge noted that the firm intentionally collected payments in a way designed to hide its involvement from the V-A, continuing the practice even after receiving official cease-and-desist letters.
The ruling establishes liability for the company in an ongoing national class-action lawsuit. Because the behavior was flagged as an unfair trade practice under state law, any eventual financial damages awarded to the veterans will automatically be tripled.
