Indiana Prosecutors Charge Financial Advisor With Theft
The (Fort Wayne, In.) Journal Gazette reportsthat Whitley County prosecutors have filed seven charges of theft against a financial advisor for allegedly scamming several elderly people.
In one case, the alleged scam artist convinced one of his clients, an 83 year old, legally blind widow, to borrow money against her fully paid off home and invest it with him. She obtained a $38,000 "reverse mortgage" (which requires no payments until she dies) and gave it to him with the understanding that he would invest it so that it would yield monthly annuity payments of approximately $600 a month.
She received some payments, but they ultimately stopped after eight months.
The widow eventually learned that the money was never invested. According to court testimony, her check was deposited into the alleged scam artist's checking account. He later put the bulk of that money, about $30,000, into his girlfriend's checking account.
The long and short of this story is that a vulnerable widow was robbed of about about $33,000 of her home equity ($38,000 less the eight monthly payments she actually received) and is now stuck with a $38,000 mortgage on her home that, because of the accruing interest, is eating away at her remaining home equity on a daily basis.
Click here for the full story (no longer available online).
Go here for other posts on reverse mortgage problems. zebra
In one case, the alleged scam artist convinced one of his clients, an 83 year old, legally blind widow, to borrow money against her fully paid off home and invest it with him. She obtained a $38,000 "reverse mortgage" (which requires no payments until she dies) and gave it to him with the understanding that he would invest it so that it would yield monthly annuity payments of approximately $600 a month.
She received some payments, but they ultimately stopped after eight months.
The widow eventually learned that the money was never invested. According to court testimony, her check was deposited into the alleged scam artist's checking account. He later put the bulk of that money, about $30,000, into his girlfriend's checking account.
The long and short of this story is that a vulnerable widow was robbed of about about $33,000 of her home equity ($38,000 less the eight monthly payments she actually received) and is now stuck with a $38,000 mortgage on her home that, because of the accruing interest, is eating away at her remaining home equity on a daily basis.
Click here for the full story (no longer available online).
Go here for other posts on reverse mortgage problems. zebra
posted by Home Equity Theft Reporter at 9:26 PM
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