Judge rules Veterans Guardian violates federal law — months after lobbying efforts in Kansas

Bill Taylor, co-founder of Veterans Guardian, testifies Feb. 3, 2026, before the House Veterans and Military Committee in favor of a bill that would have allowed for-profit claim consultants to operate in Kansas. (Kansas Reflector screen capture from Kansas Legislature video)

OVERLAND PARK — A federal judge in North Carolina found that Veterans Guardian, a for-profit consultant that charges veterans for help filing their disability claims, violates federal law.

The order came just a few months after the company lobbied Kansas legislators to pass a bill that would have greenlit for-profit consultants, despite concerns that the practice may be unlawful. The bill almost became law but support for it crumbled apart in the final hours of the legislative session.

Proponents argued Feb. 3 before the House Veterans and Military Committee that a few “bad actors” ruined the for-profit consultants’ reputations by charging exorbitant fees and using suspicious marketing tactics. Bill Taylor, co-founder of Veterans Guardian, said House Bill 2214 would have reined those companies in.

“We are 100% in compliance with federal law,” Taylor testified to lawmakers in February.

In May, U.S. District Judge Catherine Eagles disagreed.

Federal law states “no individual may act as an agent or attorney in the preparation, presentation, or prosecution of any claim,” unless they are accredited — which Veterans Guardian and the other for-profit consultants are not. Veterans who want help reviewing a claim can get help from an attorney or claims agent in exchange for a fee, which could include a portion of the veteran’s benefits.

Opponents have called the for-profit consultants “claim sharks,” and argue that charging veterans thousands — even tens of thousands — for a service that is offered for free by accredited services is predatory.

Eagles’ order outlined how the Pinehurst, North Carolina-based Veterans Guardian charged the three plaintiffs between $1,880 and $21,360. The $21,360 fee was for an initial disability claim.

“The evidence is undisputed that (Veterans) Guardian is not accredited, that on behalf of veterans it prepares claims forms, that in those forms it presents disability claims for decision by the (Veterans Affairs), and that it charges fees for doing so,” Eagles wrote in her order. “These actions violate federal law.”

Veterans Guardian was founded in 2017. The federal law Eagles cited has existed since long before then. Veterans Guardian, and similar for-profit consultants, have operated through a legal loophole.

An NPR investigation found that in 2006, as the U.S. was at war with Iraq, Congress thought veterans needed more options to navigate the disability claims process. For-profit consultants repeat that rationale today — that veterans deserve a choice between their paid, streamlined services or free but more complex accredited ones.

That year, Congress stripped the criminal penalties for violating the law — but kept the law on the books. That meant companies like Veterans Guardian have been able to use that loophole to continue operating without consequences.

Multiple bills have been introduced to reinstate the criminal penalties, but none has passed. Veterans Guardian has spent millions lobbying on the federal level. A federal bill similar to the Kansas one — that would allow for-profit consultants to legally charge veterans — advanced in the U.S. House.

After Eagles’ order, more congressional attempts at criminalization were introduced in the U.S. House and Senate. U.S. Rep. Sharice Davids, D-Kansas, signed onto the legislation Monday, a spokesperson said.

A spokesperson for Republican U.S. Sen. Jerry Moran, who chairs the Senate Veterans’ Affairs Committee, didn’t provide a comment in time for this story.

Anthony Pierce, counsel to Veterans Guardian, said the company “strenuously disagrees” with the court’s ruling.

“The ruling is not final, and Veterans Guardian will vigorously pursue all available avenues of appeal to defend our work on behalf of disabled veterans,” Pierce said.