Thousands of former Cali National Guardsmen forced to repay enlistment bonuses

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short of troops to fight in Iraq and Afghanistan a decade ago, the California National Guard enticed thousands of soldiers with bonuses of $15,000 or more to reenlist and go to war.

Now the Pentagon is demanding the money back.

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Nearly 10,000 soldiers, many of whom served multiple combat tours, have been ordered to repay large enlistment bonuses — and slapped with interest charges, wage garnishments and tax liens if they refuse — after audits revealed widespread overpayments by the California Guard at the height of the wars last decade.

Investigations have determined that lack of oversight allowed for widespread fraud and mismanagement by California Guard officials under pressure to meet enlistment targets.

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But soldiers say the military is reneging on 10-year-old agreements and imposing severe financial hardship on veterans whose only mistake was to accept bonuses offered when the Pentagon needed to fill the ranks.

“These bonuses were used to keep people in,” said Christopher Van Meter, a 42-year-old former Army captain and Iraq veteran from Manteca, Calif., who says he refinanced his home mortgage to repay $25,000 in reenlistment bonuses and $21,000 in student loan repayments that the Army says he should not have received. “People like me just got screwed.”

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“At the end of the day, the soldiers ended up paying the largest price,” said Maj. Gen. Matthew Beevers, deputy commander of the California Guard. “We’d be more than happy to absolve these people of their debts. We just can’t do it. We’d be breaking the law.”

Facing enlistment shortfalls and two major wars with no end in sight, the Pentagon began offering the most generous incentives in its history to retain soldiers in the mid-2000s.

It also began paying the money up front, like the signing bonuses that some businesses pay in the civilian sector.

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“It was a real sea change in how business was done,” said Col. Michael S. Piazzoni, a California Guard official in Sacramento who oversaw the audits. “The system paid everybody up front, and then we spent the next five years figuring out if they were eligible.”

The bonuses were supposed to be limited to soldiers in high-demand assignments like intelligence and civil affairs or to noncommissioned officers badly needed in units due to deploy to Iraq or Afghanistan.

The National Guard Bureau, the Pentagon agency that oversees state Guard organizations, has acknowledged that bonus overpayments occurred in every state at the height of the two wars.

But the money was handed out far more liberally in the California Guard, which has about 17,000 soldiers and is one of the largest state Guard organizations.

In 2010, after reports surfaced of improper payments, a federal investigation found that thousands of bonuses and student loan payments were given to California Guard soldiers who did not qualify for them, or were approved despite paperwork errors.

Army Master Sgt. Toni Jaffe, the California Guard’s incentive manager, pleaded guilty in 2011 to filing false claims of $15.2 million and was sentenced to 30 months in federal prison. Three officers also pleaded guilty to fraud and were put on probation after paying restitution.

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