Arabic version: شركة VeteranCann تخضع للتحقيق بتهمة تقديم رشاوى لمناصري العسكريين

A medicinal cannabis company, VeteranCann, has come under scrutiny for allegedly offering thousands of dollars in financial “kickbacks” to military advocates for referring veterans to its services. This revelation was uncovered by a recent 7.30 investigation, which included a recorded phone call where a sales representative proposed a 5 percent commission “in perpetuity” for every veteran who signs up to an ongoing medicinal cannabis prescription. According to ABC News, the representative noted that advocates could earn substantial commissions as veterans were prescribed more cannabis.

Military advocate Luke Armstrong, who recorded the conversation, expressed concern over the proposal, describing it as “incredibly brazen”. He indicated that such financial incentives could exploit veterans and undermine the integrity of the Department of Veterans’ Affairs (DVA) processes. Armstrong has previously faced criticism for charging veterans nine percent commission for services provided by his former company KSC Claims.

The DVA has acknowledged that kickbacks, if proven, may be unlawful. Following these allegations, the department stated it is committed to ensuring that veterans are not subjected to “predatory practices”. In response to growing concerns over fraudulent activities, the DVA recently tightened its rules regarding funding for medicinal cannabis prescriptions, requiring veterans to see their GP in person.

This incident adds to the mounting scrutiny the DVA faces regarding fraud and improper billing within the veteran health and compensation system. The department has announced a $203 million initiative to combat fraud, with several providers already charged with fraudulent offenses. With an estimated half-a-billion dollars lost to fraud last financial year, the integrity of the system remains a significant concern for veterans and their advocates alike.