New York, Illinois Target Trajector Over Alleged Fraud On Disabled Veterans
On Sept. 8, New York and Illinois attorneys general notified a U.S. bankruptcy court in Florida that they are investigating Trajector Medical and plan to file legal actions alleging it illegally profited from disabled veterans.[1]
They told the court they expect to show that funds now in the bankruptcy estate were "collected through illegality and fraud." NPR The AGs' filings say they are concerned Trajector used a "CallBot" to access VA benefit data and then billed veterans.[1] Trajector and 21 affiliates filed for Chapter 11 shortly before defaulting on nearly $63 million owed to Deutsche Bank.[1] The company reported about $405 million in assets and nearly $280 million in income in 2025.[1]
NPR reported state officials say Trajector earned millions by targeting disabled veterans.[1] The AGs said they will seek court orders to recover any funds they say were obtained illegally and to block distributions while the allegations are resolved.[1]
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📌 Key Facts
- On Sept. 8, 2026, New York and Illinois attorneys general notified the U.S. Bankruptcy Court in Florida that they are investigating Trajector Medical and plan to file legal actions for alleged fraudulent, illegal and deceptive practices.
- The AGs told the court they expect to show that funds held in the bankruptcy process were "collected through illegality and fraud," citing concerns about Trajector's use of a "CallBot" system to access VA benefit data and bill veterans.
- Trajector and 21 affiliates filed for Chapter 11 bankruptcy protection shortly before a default on nearly $63 million owed to Deutsche Bank, reporting about $405 million in assets and close to $280 million in 2025 income.
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