Australia: Medicinal cannabis company offered ‘kickbacks’ to military advocates for veteran referrals | Cannabis Law Report | Where to buy Skittles Moonrock online
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A medicinal cannabis company has been offering thousands of dollars in financial “kickbacks” to military advocates in exchange for referring veterans to its services, a 7.30 investigation has uncovered.
Under the Military Rehabilitation and Compensation Act, receiving financial incentives for referrals may be unlawful.
7.30 has obtained a recording of a telephone call in which a sales representative from telehealth company VeteranCann offers a military advocate a 5 per cent commission “in perpetuity” for every veteran who signs up to an ongoing medicinal cannabis prescription.
“You can make the offer to them and say, ‘Look guys, if you’ve thought about medicinal cannabis, it’s easy, just click on this link,’” the representative says in the recording.
The representative goes on to explain that the more cannabis a veteran is prescribed, the more commission the advocate would receive.
“We decided we’d put in a 5 per cent sort of kickback … monthly in perpetuity. So for every person you get on, you’ve got them for life basically,” the representative says.
“The advocates that we’ve got on who’ve referred … one of them’s getting around $17,000 a month. And it’s getting higher and higher as they add more and more people on.”
The recording was made by military advocate Luke Armstrong from KSC Law, who said he remained on the call to document what he described as an “extraordinary” proposal.
Military advocates help veterans navigate the complex compensation system administered by the Department of Veterans’ Affairs (DVA).
Mr Armstrong himself has previously been criticised by a witness at a Senate inquiry for charging veterans 9 per cent commission for services provided by his former company, KSC Claims.
Those fees could amount to thousands of dollars paid from veterans’ lifelong entitlements.
He has rejected any suggestion the fee structure was exploitative, and said payment arrangements were always clearly disclosed. He said KSC Law, where he is currently a director, did not charge commission-based fees.
Mr Armstrong can be heard in the recording with VeteranCann asking whether advocates should notify a veteran’s regular GP or their psychiatrist before referring them to VeteranCann.
The sales representative can be heard responding that many GPs and psychiatrists were already associated with the company, and added that there was no need to disclose the commission arrangement to veterans.
“That’s a private thing between us and you,” the representative says.
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