New York Law To Protect Veterans Against ‘Pension Poaching’ Financial Scams
Aug. 24--Veterans in the Empire State are getting some extra protections against potential scammers known as "pension poachers."
Gov. Cuomo signed a new law on Friday that makes it harder for crooked financial planners or insurance agents to swindle elderly or disabled veterans.
The measure, dubbed the Pension Poaching Prevention Act, will help stop scammers who profit by selling unsuspecting veterans financial products they don't need or charging them to apply for benefits from the U.S. Department of Veterans Affairs they aren't qualify for.
"There are plenty of business that legitimately assist veterans and their families," Cuomo said. "However, there are far too many bad actors who prey upon the individuals who have valiantly served our state and our nation, causing irreparable financial harm."
The measure makes it illegal for unethical agents to charge vets for helping them complete paperwork to file benefits claims and prohibits firms from charging unreasonable fees for services and guaranteeing that a specific amount of benefits money will be received.
It also requires entities offering financial services to inform vets and their families that the New York State Division of Veterans' Services and their local Veterans Service Agencies can provide free services regarding V.A. benefits.
Scammers often push vets to transfer money to a trust or invest in insurance products. The results often lead to the target losing eligibility for Medicaid services or their benefits altogether.
The last time the federal Government Accountability Office investigated pension poaching, in 2012, it identified more than 200 organizations across the country marketing financial and estate planning services to help potential claimants, who should not have been eligible, qualify for benefits.
The investigation revealed some of the businesses were overcharging veterans thousands of dollars for services and swindling service members and their families by selling bogus trusts or deferred annuities.
"Veterans are heroes who have served our country selflessly to defend our freedoms," said sponsor Sen. David Carlucci (D-Rockland). "Now it's our turn to help protect them from scam artists who seek to steal their hard earned money."
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