by Debbie Burke
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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