An Australian company that assists veterans with compensation claims has drawn criticism after a video surfaced showing its boss, Tom Kliese, discussing ambitions to turn the firm into a billion-dollar enterprise with American entrepreneur Alex Hormozi. The remarks, made at a business development conference and shared online, have sparked anger among veterans and led to calls for increased regulation of the industry.
In the video, which has since been removed from YouTube, Kliese outlined his company, Veterans First Consulting, current revenue of $55 million and projected growth to $100 million within two years. His stated goal was to achieve a "billion-dollar enterprise value," which he clarified could mean $250-300 million in revenue. Kliese noted that Veterans First Consulting currently holds about 40% of the Australian market for veteran compensation claims, primarily serving veterans with injuries or illnesses related to their military service.
Kliese explained the firm's process, noting that claims typically take two years, allowing contracts signed at the present to be counted as future revenue. The average veteran payout of approximately $250,000, according to Veterans First's published terms, could result in the firm receiving around $19,250 including GST per claim. This compensation is funded by taxpayers to support veterans experiencing consequences of their service.
Hormozi, in response, suggested strategies such as acquiring rival companies and consolidating operations under different brands. Kliese calculated that increasing market share from 40% to 60% would add approximately $15 million in revenue, still short of his billion-dollar target.
The video's release prompted an apology from Kliese, who stated that his business-focused language had "inadvertently stripped out the human reality" of the support provided to veterans. He expressed deep respect for the veteran community and clarified that his ambition was to assist as many veterans as possible.
Concerns were also raised regarding Veterans First's engagement terms, which include a clause stating that a client terminating the contract under certain circumstances, after medical reports are filed and a permanent impairment claim is ready, could be charged $21,000 plus GST. The document, found on a legacy company website, also mentions that overdue amounts can accrue compound interest and that clients remain bound if the business is acquired or merged.
Veterans advocacy groups, such as RSL Victoria, have called for government intervention to regulate private fee-for-service operators. They warn that some operators take a significant portion of veterans' compensation and impose substantial exit fees. RSL Australia has proposed measures including fee caps, cooling-off periods, restrictions on marketing, mandatory disclosure of free advocacy services, and a ban on termination charges exceeding the value of work performed.
These organizations argue that commercial operators have an incentive to maximize compensation payouts to increase their revenue, potentially leading to inflated claims and delays in an already strained system. The Department of Veterans' Affairs has acknowledged in consultation papers that commission-based businesses may exploit the system for corporate gain.
Veterans Affairs Minister Matt Keogh has previously condemned excessive commissions and punitive break fees. His department is consulting on industry regulation, indicating recognition of the need for reform. The situation highlights the ongoing debate about whether veteran advocacy should be a service or a for-profit business, with concerns that compensation for injury and sacrifice could become a means for others to build significant wealth.