A lawsuit against a Las Cruces-based company for deceptive practices and illegal business operations is gaining steam as state prosecutors look for more victims.
In April, the New Mexico Department of Justice (NMDOJ) and Attorney General Raúl Torrez filed a lawsuit in Las Cruces against Disabled Veterans Consultants, Inc. (DVC) for unlawfully charging veterans for benefits-related consulting services that are already available for free.
In an email to New Mexico Political Report, the office of the Justice Department says: “Veterans should never have to pay to access the benefits they’ve earned.” The agency says there’s still time for victims of the company to come forward. “The case is currently in the discovery phase,” says the office, “and we encourage anyone who has been impacted by DVC or similar scams to visit our veterans benefits page and submit a complaint: nmdoj.gov/veterans.”
According to the complaint, DVC charged clients hundreds or even thousands of dollars to assist with Department of Veterans Affairs (VA) disability claims. By law, these services are supposed to be provided for free or only by VA-accredited representatives. The AG’s office says the company and its owners aren’t accredited, and NMDOJ says there are free VA-accredited consultants already available anyway.
Veterans were reportedly told that paying DVC would speed up their claims or increase their chances of receiving a higher disability rating. The lawsuit says these promises were misleading and violated New Mexico’s Unfair Practices Act.
The state also claims to have uncovered efforts by the company to obscure transactions. Instead of accepting money directly from clients, DVC allegedly instructed them to send payments to three California-based companies: Zeplin Global Group, MJJL Holdings and GTM Bookkeeping. According to the AG’s office, this is evidence that the company was trying to avoid scrutiny.
The lawsuit, filed in Doña Ana County’s Third Judicial District Court, seeks restitution, civil penalties (up to $5,000 per violation) and a court order permanently shutting down the operation. During this early stage of the case, NMDOJ is likely collecting internal communications at the company and other documents, deposing company officers and identifying affected veterans.
Disabled Veterans Consultants could not be reached for comment.
The suit highlights a growing national problem with so-called “claim sharks”—companies that charge veterans for VA benefit services without the proper accreditation. The VA claims process is notoriously confusing and complex, and claim sharks often exploit this fact to take advantage of unwary veterans.
Earlier this year, an anti-claim shark bill failed to pass in the New Mexico House after it died before the House Judiciary Committee. The bill would have banned unaccredited claim shark firms from operating in the state. Supporters say they plan to reintroduce it next year.
Meanwhile, a number of other states have already moved to ban the practice and protect the country’s veterans, including New Jersey, Maine, New York, Florida and California.
