[Congressional Record Volume 150, Number 40 (Friday, March 26, 2004)]
[Extensions of Remarks]
[Pages E457-E458]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF H.R. 4032, THE VETERANS FIDUCIARY ACT OF 2004

                                 ______
                                 

                          HON. SUSAN A. DAVIS

                             of california

                    in the house of representatives

                        Thursday, March 25, 2004

  Mrs. DAVIS of California. Mr. Speaker, during the first session of 
this Congress, the Subcommittee on Benefits of the House Committee on 
Veterans Affairs held a hearing concerning the Department of Veterans 
Affairs

[[Page E458]]

(VA) fiduciary program. When a veteran has difficulty managing his own 
finances, the VA appoints a guardian or a ``fiduciary'' to oversee his 
benefits. During the hearing, I was surprised to learn that there is no 
mechanism in place to provide replacement of benefits for VA 
beneficiaries whose benefits have been misused by a VA recognized 
fiduciary.
  Unfortunately, some of our veterans have lost out on their VA 
benefits because of fiduciary misuse. According to an investigation by 
the Inspector General, one woman embezzled over $60,000 in VA payments 
from 1997 to 2001 from a disabled veteran under her care. In another 
case, a fiduciary defrauded his uncle out of nearly $55,000 in VA 
payments.
  A good number of our veterans must live on limited budgets and rely 
primarily on their VA payments. When they lose even a portion of their 
benefits, the impact on the quality of their lives can be significant.
  I was also surprised to learn that Congress has not improved on the 
safeguards for veterans who depend on fiduciaries in over 25 years. It 
is time we do something to prevent fraud against our veterans and to 
provide remedies when benefits are misused.
  Today, I am introducing legislation, the ``Veterans Fiduciary Act of 
2004,'' which would provide veterans and their families new protections 
and new avenues to recoup their losses. This bill would require the 
replacement of benefits in cases when the VA has been negligent in 
failing to investigate or monitor a fiduciary and in certain other 
circumstances. It will also require the VA to conduct background checks 
before recognizing a fiduciary and will give the VA new mechanisms to 
deter misuse, including civil monetary fines.
  Again, I strongly believe we should be doing more to protect the VA 
benefits our veterans rely upon. I am proud to introduce legislation to 
give our most vulnerable veterans the protection they deserve.

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