True Crime Thursday – Rent-A-Vet Frauds

 

Photo credit: house.gov

by Debbie Burke

@burke_writer

In an earlier life, my husband and I operated several businesses in San Diego, historically a Navy and Marine Corps town. Whenever possible, we hired veterans. Most became valued key employees, supervisors, and managers we trusted and appreciated.

Giving hiring preference to U.S. veterans dates back to the Revolutionary War when government jobs were granted to those who had served their country, a tradition traced even earlier to European practices. In those days, the courtesy was mostly extended to officers, not the rank-and-file soldier.

The first law giving veterans hiring preference was enacted during the Civil War:

Persons honorably discharged from the military or naval service by reason of disability resulting from wounds or sickness incurred in the line of duty shall be preferred for appointments to civil offices, provided they are found to possess the business capacity necessary for the proper discharge of the duties of such offices.

The Veterans Preference Act of 1944 expanded coverage and was endorsed by President Franklin Delano Roosevelt who wrote:

“I believe that the Federal Government, functioning in its capacity as an employer, should take the lead in assuring those who are in the armed forces that when they return special consideration will be given to them in their efforts to obtain employment. It is absolutely impossible to take millions of our young men out of their normal pursuits for the purpose of fighting to preserve the Nation, and then expect them to resume their normal activities without having any special consideration shown them.”

From moving companies to handyman services to landscaping to construction, “rent-a-vet” is common term that appeals to those of us who want to do business with former service members. “Rent-A-Vet” ads are listed on Yelp, Craig’s List, and through employment services.

But, as always, honorable intentions can be twisted by dishonorable people for their own selfish benefits.

Unfortunately, you can’t always believe claims that workers are veterans or that companies are veteran-owned.

Rent-A-Vet fraud schemes are common. Two popular variations are 1) workers who claim to be vets but aren’t, and 2) companies that “rent vets” (IOW, they pay vets) to front as owners and/or officers of a company.

In a 2017 example, a veteran named Paul R. Salavitch was hired by Jeffrey K. Wilson (not a veteran) who owned a Missouri-based construction company, ironically named “Patriot Company, Inc.” Salavitch was named president of Patriot and acted as their front man, using his status as a service-disabled veteran to give the company preference when bidding for 20 government contracts totaling $13.8 million. Salavitch did not make decisions and was not involved in day-to-day operations. In further irony, he held a full-time job at the Department of Defense.

In 2018, Patriot owner Wilson pled guilty to one count of government program fraud. Salavitch pled guilty to a misdemeanor charge of making a false writing.

More recently, in March, 2024, Edward DiGorio Jr., 65, and Edward Kessler, 68, pled guilty to two counts of fraud in federal court in Pittsburgh, PA. Neither DiGorio nor Kessler were veterans, nor service-disabled. Between 2007 and 2018, to gain lucrative government contracts for two construction companies they owned, they “paid service-disabled veterans to falsely represent themselves as the primary owners and operators of ADDVETCO and Hi-Def, and to falsely attest to ownership of the companies on critical documents submitted to the VA.”

Their companies were awarded 67 contracts; 50 totaled $1 million plus. For two recent contracts, they received more than $400,000 in profits. Edwards and Kessler face up to $1 million in fines and up to 10 years in prison. They will be sentenced in July, 2024.

These fraud cases deprived legitimate veterans and service-disabled veterans of contracts and income they should have been entitled to.

How can you avoid frauds by people and companies passing themselves off as veterans or veteran-owned? Here are a few ways:

  • A DD-214 is proof of military service.
  • An employer may ask the person if s/he is a veteran.
  • Check out small business certification at: veterans.certify.sba.gov/
  • Call references.
  • Look up the company with the Better Business Bureau.

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TKZers: Have you or someone in your family benefited from veteran’s preference?

Is veteran status important to you when looking for a contractor or employee?

Have you hired or employed veterans?

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This entry was posted in #truecrimethursday, fraud by Debbie Burke. Bookmark the permalink.

About Debbie Burke

Debbie writes the Tawny Lindholm series, Montana thrillers infused with psychological suspense. Her books have won the Kindle Scout contest, the Zebulon Award, and were finalists for the Eric Hoffer Book Award and BestThrillers.com. Her articles received journalism awards in international publications. She is a founding member of Authors of the Flathead and helps to plan the annual Flathead River Writers Conference in Kalispell, Montana. Her greatest joy is mentoring young writers. http://www.debbieburkewriter.com

19 thoughts on “True Crime Thursday – Rent-A-Vet Frauds

  1. Interesting post, Debbie. I had never heard of these scams, but am not surprised.

    I have brothers-in-law who are veterans. The only benefits I know of that they get are discounts at some of the building supply stores in our area.

    Before I retired from my “real job,” I owned and ran a medical practice. I did hire a couple of nurse veterans. I never thought to confirm their status. My biggest challenge was documentation of the training they had in their position.

    This discussion points to the Villain’s Journey and who he is vs. what he does.

    Have a great weekend!

    • Steve, I wasn’t aware of such scams until recently when I read the article about Patriot Company, Inc.

      For their service, legit veterans deserve recognition, whether in job preference or the military discounts you mention. Often vets are too modest to accept even a discount at a restaurant. A frequent refrain: “I was just doing my job. Others did a lot more.”

  2. Good morning, Debbie, and thanks for letting us know yet another example of the way people can cheat to make money. Maybe the guilty ones should be punished by having to dig the graves of real veterans.

    My husband is a Navy vet. He served two years aboard ship but fortunately never saw armed conflict. I don’t believe Frank has ever requested or received any benefits from his service.

    A couple of years ago I was asked to write one of the essays about veterans for an anthology that a local vet group was putting together. I met and wrote about Charlie Henderson, a WWII vet who was at the Battle of the Bulge. That led to our joining the vet group and attending their monthly meetings. It’s always an honor.

    • Kay, again you’ve come up with an appropriate punishment for cheats and scammers. Digging veterans’ graves is a great idea. When are you going to run for judge? You have my vote!

  3. TKZers: Have you or someone in your family benefited from veteran’s preference?

    Is veteran status important to you when looking for a contractor or employee?

    Have you hired or employed veterans?

    None of the above, Debbie, except for half of the second question: Veteran status is important to me…

    Cheating a veteran is despicable. Right up there with harming children. I’m a bit hard-nosed over it, I know.

    I have numerous veterans in my family, and I have nothing but respect for them. We, in many respects, wouldn’t be living the lives we’re living without their service.

    I agree with Kay’s “sentence” for the cheaters. But, I’d add this: after they dig the grave for the real veteran, they must fork over whatever assets they have to the vet’s family, then be incarcerated for the rest of their miserable lives.

    • Deb, veterans’ families know all too well the sacrifices service members make to give us “the lives we’re living.”

      Thanks for stopping by.

  4. We have a number of veterans on staff. I don’t know if their veteran status was taken into consideration.

    I come from a long line of Army veterans. My uncle knew every place in North America that had a veterans’ discount. His father, my grandfather, could always find a position for a veteran in hard times. My Great grand father was active with the veterans of the Spanish-American war. What is now the VFW. He fought for his promised bonus after the war. The government paid those vets in 1928 the bonuses promised for 1898.

    Great great grandfather Sigmund, fought in the war for the Western Continent. After a few months on the frontier, he decided to move back east. He settled in Cleveland and opened a tabacco shop. He had a case with arrowheads and such from his days as an Army Scout. Most people thought his stories of fighting Indians and display of arrowheads was made up and fakes. He was a small Jewish man in his twenties.

    The Buffalo Bill Wild West show came to Cleveland. Great, great grandfather wrote his old army buddy Bill Hickock. 3X grandfather took his best customers to the show and sat in the president’s box. There was no more talk about if his stories were real. He ended up quite well to do.

  5. Scammers get more and more disgusting. No one’s off limits.

    Hey, a new scam emerged recently…

    An email from a fake Amazon stating payment didn’t go through. They want you to click the link to update bank information (which of course is a phishing hack). The email looks real. Advice: Always check the return address. If you still can’t tell, head straight to your Amazon account. If a payment didn’t go through, they’ll list it on your account.

    • Thanks for alerting us to the fake Amazon scam, Sue. They get more clever at disguising their real identities. I don’t click on attachments or links unless I’m positive of the sender. Go to the horse’s mouth–the actual company website to verify if the email or text is legit.

  6. Sue, if you use a windows machine you can always check the properties of an email. That will give you the senders IP which you can check further. It will also give you the real sender’s email address and so when you see something like Amazon.gmail or amazon.ru you know right away it’s completely phony.

  7. I heard of a lot of these scams. playing on the patriotism of those who use the companies involved. It’s sad when veterans will essentially prostitute themselves for a few more dollars. That is greed if you are working and really don’t need those few dollars. Most of the time, my husband doesn’t ask for the discounts he’s eligible for as a vet. Scams have been going on from the time society was created and people began to live in towns and cities. And no matter what we do, there will always be people who will try to make money off those who served their country. My jaded point of view is that there are scammers everywhere and it is up to you to determine who they are and how to avoid them. Unless I see those discharge papers and proof you are who you say you are, I’ll have a tendency to not believe you were a vet. Sort of like those who stand on street corners holding a sign that says, “Veteran. Homeless and hungry.” Most of the time it’s a lie.

    • Barbara, these days your “jaded” POV is smart and keeps you from being taken. Sad that we have to assume the worst to protect ourselves.

  8. To combat this sort of fraud, many companies use the ID.me verification system which simplifies how individuals prove and share their identity online. My latest experience with this system was with Verizon. Basically one wishing to obtain the discounts has to set up an ID.me account and provide information necessary to verify military service. Once completed, that verification can be forwarded to companies offering military discounts.

    I completed my military service in 1979.

    The sort of fraud discussed here is just a subset of a much larger issue. People wanting something they have not worked for. Just thieves of a different stripe. Expect this to continue as long as it is easier to cheat the system than to do the work, or perform the service.

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