Veterans Induced to Sell Benefits for Lump Sum File Lawsuit
April 04, 2018
A legal battle in South Carolina over a veteran’s benefits scheme was argued in federal court last week. The lawsuit claims that three veterans were illegally induced by an attorney, two businessman and five other companies to sell off part or all of their disability benefits in return for a lump sum payment. The veterans claim that these transactions required them to, unknowingly, pay inflated interest rates.
The court attempted to determine the role each of the defendants played in the scheme. The attorney argued that she was simply the third party between investors and the veterans, and thus should be dropped from the suit. Opposing counsel argued that she controlled the flow of money for the operation and did not warn the veterans about inflated interest rates.
An attorney for one of the businessmen argued that he has created websites to find veterans dealing with significant financial burdens, but that his client was not involved with the transactions of this operation.
While Judge Donald C. Coggins Jr. made no rulings at the conclusion of the hearing, he did convey the seriousness that the nature of these allegations hold. While there are only three veterans involved in the lawsuit, the results of this case could shed light on many other veterans that have fallen victim to the same ploy. You should never sell your benefits stream.