Veterans For Sale: Exploiting Homeless Veterans

The GUARD VA Benefits Act (H.R. 1139)

The Governing Unaccredited Representatives Defrauding VA Benefits Act, or the GUARD VA Benefits Act (H.R.1139), was introduced in the 118th Congress on February 21, 2023, by Representative Chris Pappas, along with bipartisan co-sponsors. The bill aims to protect veterans from predatory practices by reinstating criminal penalties for unaccredited individuals who charge unauthorized fees for assisting with Department of Veterans Affairs (VA) benefit claims. Specifically, it seeks to impose fines on individuals who solicit, contract for, charge, or receive unauthorized fees related to the preparation, presentation, or prosecution of any claim for VA benefits.

The GUARD Act aims to protect veterans from predatory unaccredited individuals not just from direct fees but also from individuals that also profit from fundraising by exploiting vulnerable veterans for financial gain.

Owner and business partner of US Patriot Fund John Baglivi is a regular at Borden Avenue promising claims assistance, collecting veteran’s information in violation of HIPAA regulations, and then posting the video on You Tube. What makes this more disturbing is their lack of respect for Veterans Affairs, John’s business partner Louie Frias wrote in a recent blog “Yet ANOTHER Reason to Loathe the VA”:

“Another thing…STOP LOOKING AT THE eBENEFITS or MyHealthEvet sites! This VA nonsense is designed to FAIL THE VETERAN and instances such as this one, are PROOF of it. We, on the other hand, prefer to bitch slap VA at all levels because we have NOTHING TO LOSE when fighting for our Veterans,”

While these two companies are operating inside a Veterans Affairs federally-funded programs sowing distrust and exploiting veterans, they aren’t permitted to file claims for disability. Only accredited Veteran Service Officers are allowed to file disability claims with Veterans Affairs which protects both the veteran as much as it is to protect the claims process from fraud. Allowing unaccredited organizations to have direct access to vulnerable veterans sets the dangerous and unlawful practice of profiting from veterans in VA Grant and Per Diem program.

NYC Department of Investigation Report / Department of Homeless Services

According to the NYC Department of Investigation’s 2024 report, systemic issues plague the shelter network, which is largely managed by nonprofit providers under contract with DHS. The investigation revealed several disturbing patterns of corruption and mismanagement:

• Conflicts of Interest: Executives and insiders benefiting from non-transparent business dealings linked to shelter operations.

• Excessive Executive Compensation: Multiple shelter executives are earning over $500,000 annually from public funds, with little oversight.

• Nepotism: The hiring of family members in violation of city contracts, raising concerns over favoritism and accountability.

• Lack of Competitive Bidding: Numerous instances where shelters bypassed city procurement rules, allowing for questionable deals and partnerships.

Conflicts of interest top the list as it relates to veterans experiencing homelessness. In addition to denying access to resources and services that promote a successful entrance into the community, DHS and ICL are allowing predatory organizations such as US Patriot Fund and SOS direct contact with vulnerable veterans.

Veterans Affairs Office of Inspector General / Grant & Per Diem Program

These issues, coupled with a lack of proper oversight from the city, have resulted in veterans being left vulnerable in the very programs designed to protect them. A recent investigation by the VA’s Office of Inspector General revealed that 20% of veterans in GPD programs are not accounted for, while their cases are often incorrectly marked as successful transitions.

The VAOIG review team, “Additional Controls Are Needed to Improve the Reliability of Grant and Per Diem Program Data” estimated that HOMES outcome data were unreliable for about 888 (21 percent) of the 4,151 veterans recorded as having exited the program for permanent housing. In these cases, HOMES data did not match VA medical records, did not match the grantee’s files, or lacked supporting documentation. Additionally, HOMES data did not accurately capture all negative exits—case outcomes where veterans are discharged from the GPD program under negative circumstances.

Donors Locked Out of Borden Avenue

The Borden Avenue shelter, meant to provide a safe space for veterans transitioning from homelessness, has instead become a hotbed for violence, drug use, and gross neglect. For many veterans like Timothy Pena, who relocated to New York City seeking a fresh start and mental health support, the experience has been nothing short of a nightmare. Upon entering the shelter, Pena and others found themselves subjected to substandard conditions, including inedible food, negligent security, and a lack of adequate community engagement. To make matters worse, the presence of high-risk offenders and bureaucratic delays have left veterans feeling abandoned and unsafe. Donations meant for veterans have been instead going to staff.

During a donation event in November 2024, Blackstone Foundation and Homes for Veterans supplied thousands of dollars in donations. Instead of being invited inside, Borden Ave staff forced them to hold the event in the pouring rain.

Another recent coat drive held by NYC Council Member and Chairman of Veteran Services Robert Holden Council Members Vicki Paladino and Joann Ariola, Holden was required to sign an NDA before entering Borden Avenue. One of the sponsors, Vietnam Veterans of America #32 refused to sign and were asked to leave which they did.

As in most donations that come into Borden Ave, veterans report that very little of the overall donations actually went to the veterans, with staff taking a major portion for themselves. One glaring example of donation fraud was thousands of dollars of turkeys and other goods donated by Community for a Cause, “Community for a Cause raising funds for Borden Avenue Veterans Residence in Long Island City this holiday season” for years 2022 and 2023. The kitchen at Borden Avenue is used as a culinary school for Project Renewal and there’s no staff to cook food coming in with donations. Instead of a home-cooked Thanksgiving Dinner as is done in GPD programs around the country, veterans at Borden Ave were instead served pre-prepared black ‘trays’ provided to most other shelters.

Upcoming City Council Oversight Hearing

After years of complaints, overdoses, and deaths at Borden Avenue, Councilman Holden has called for an oversight hearing with Department of Homeless Services. It is fair to say not much is to be expected. DHS Commissioner Molly Wasum Parks has made a practice of blaming contracted vendors for everything from inedible food to processing of housing vouchers. In return, ICL CEO Jody Rudin and her staff place the blame on DHS. Veterans Affairs knows about these issues and has remained silent while VA Homeless Director Karen Fuller forces the termination of veterans experiencing homelessness from the Veterans Task Force and ignores dozens of complaints from homeless veterans.

Veterans Need Your Help

Please consider taking time from your busy schedule to attend the upcoming hearing on DHS Oversight:

Topic: Addressing the Needs of Homeless Veterans

Where: 250 Broadway, Committee Room 14th Floor

When: February 19, 2025 / 1300 hours (1pm)

Register to Testify: https://council.nyc.gov/testify/

Timothy Pena is a service-connected disabled Navy veteran for PTSD and has written about his experiences with mental health, homelessness, and the judicial system. Suffering mental illness, he initially visited NYC to collaborate on a documentary for veteran suicide but decided to stay after realizing he would rather be homeless in NYC than dead in Phoenix. He has been writing stories and blogs about his journey from “homeless to homeness” in the NYC Dept of Homeless Services system and possible corruption within DHS and Veterans Affairs Grant & Per Diem Transitional Program.