Curbing Elder Financial Abuse Through Required Reporting To Authorities

The fifth in a series of editorials by the Contra Costa Times (Northern California) on elder financial abuse focuses on a California state law, which became effective in January, 2007, which requires reporting of suspected elder financial abuse in certain cases:

• [The Financial Elder Abuse Reporting Act] requires all employees of financial institutions - banks, credit unions and savings and loans - to contact the police department or Adult Protective Services if they suspect that an elderly person is a victim of financial abuse. Those who fail to do so face fines of up to $5,000. Financial institution employees now join other so-called mandated reporters who often come into contact with elderly people and are in a position to detect hidden abuse. They include health care workers, state and county employees, nursing home staff, clergy, and law enforcement.

***

• When it comes to elder financial abuse, financial institutions are often the scene of the crime. Brazen elder predators have been known to march seniors up to the teller window in their pajamas. Our financial institutions are an important early warning system for detecting elder abuse. Their employees can spot unusual activity on an elderly customer's account, such as a $150,000 wire transfer going to a foreign lottery, or a $135,000 check written to an accountant for a bogus tax bill.

***

• California law makes it easy for financial institution employees to do the right thing. They don't even have to worry about getting in trouble if they make an honest mistake. They can't be prosecuted unless they knowingly make a false claim. No one's asking tellers to play detective, only to report in a timely manner by telephone or in writing possible crimes occurring before their very eyes.

The editorial includes the story of one 82 year-old widower who (prior to the new law becoming effective) was in the process of having his bank accounts at four financial institutions cleaned out by a scam artist when, because of the actions of alert employees at one of the institutions, an ex-felon's elaborate scheme to steal everything that the elderly man owned was foiled. It turns out that the predator had also set himself up to inherit the widower's $400,000 home and annuities worth $200,000. He's now in prison, serving a 10-year sentence for elder theft.

For more, see Theft of Elder Nation: An editorial series (Requiring reporting) (may require free registration).

Go here for all posts and links to this Contra Costa Times editorial series on elder financial abuse.

Go here , go here , and go here for other posts on elder financial abuse. xero

Elder Financial Abuse Flying Under The Radar?

Elder financial abuse is the subject of an editorial series in the Contra Costa Times (Northern California). The first column in the series discusses the problems that vulnerable senior citizens face as a result of shameless predators seeking them out, many times actually befriending them, for the purpose of fleecing them of their homes and money. The following excerpts include two of the anectdotes cited in the column as examples of the types of cases that may be widespread but not getting needed attention from lawmakers, law enforcement, or the press:

• An ex-convict who works at an Antioch car wash "befriends" an 82-year-old customer with dementia. Over time, he not only persuades the World War II veteran to give him more than $300,000 in cash and annuities, but he also gets the elderly man to change his will making him sole beneficiary.

• An East Palo Alto woman takes out a $200,000 loan on her 92-year-old grandmother's house without her knowledge. She leaves the wheelchair-bound senior alone in a house full of rats while she goes on a $75,000 shopping spree -- buying herself a champagne-colored Hummer. After her arrest, she gets a mortgage broker to bring her loan documents in jail so she can take out another $400,000 loan on her grandmother's house.

For the seven editorials in the series (may require free registration), see:

1. Endangered Seniors (Elder financial abuse has become a hidden national epidemic) (12-9-07),
2. Theft of Elder Nation: An editorial series (Elder court is crucial) (12-10-07) (The focus is on Alameda County's Elder Protection Court in Oakland, California - reportedly "the only court in the country that handles civil and criminal complaints involving elderly victims in the same central location."),
3. Theft of Elder Nation: An editorial series (Getting involved early is critical) (12-11-07),
4. Theft of Elder Nation: An editorial series (State needs to revoke theft license) (12-12-07),
5. Theft of Elder Nation: An editorial series (Requiring reporting) (12-13-07),
6. Theft of Elder Nation: An editorial series (Place legal curbs on 'rescue' practice) (12-14-07),
7. Theft of Elder Nation: An editorial series (Close legal loopholes on persuasion) (12-15-07),
8. It's time for strong action against elder abuse (12-31-07).

For more on the Elder Protection Court, see KTVU Channel 2 report, Alameda Court Takes Aim At Elder Abuse; or here to watch the KTVU video report.

Go here for all posts on this Contra Costa Times editorial series on elder financial abuse.

Go here , go here , and go here for other posts on elder financial abuse. xero

Early Involvement Critical In Avoiding Financial Elder Abuse

The third in a series of editorials by the Contra Costa Times (Northern California) on elder financial abuse focuses on the importance of staying involved when the care of a loved one is turned over to a caretaker and being proactive when detecting signs of caretaker abuse. The following excerpts summarize the events, detailed in the editorial, that occurred when one woman hired what turned out to be the wrong caretaker for her 83 year old uncle:

• CARMEN PAREDES SEEMED like such a sweet, friendly person. "You just never would have suspected it," said Kathleen Whittaker, who hired the Peruvian native in 1998 to help take care of her 83-year-old uncle, William Fowler. The "it" is one of the worst cases of elder financial abuse in Contra Costa County history. During 2 1/2 years, the $10-an-hour caretaker siphoned more than $600,000 away from the El Cerrito widower. Paredes, 59, pleaded no contest to felony elder abuse and tax evasion in March 2004. She was sentenced to three years' probation. She got no prison time, although the judge could have given her as many as nine years. Her two adult sons and a daughter also were implicated in the scheme. They were convicted of misdemeanors. Obviously, the law in this area is far from robust.

***

• Whittaker says her greatest regret is that she didn't get more aggressively involved. "My purpose now," she said, "is to publicize what happened to my uncle as a warning to others."

For more, see Theft of Elder Nation: An editorial series: (Getting involved early is critical).

For links to the other editorials in this series, see Elder Financial Abuse Flying Under The Radar?

Go here for all posts on this Contra Costa Times editorial series on elder financial abuse.

Go here , go here , and go here for other posts on elder financial abuse. xero

Elder Financial Abuse & The General Power Of Attorney: A License To Steal That Needs To Be Revoked?

The fourth in a series of editorials by the Contra Costa Times (Northern California) on elder financial abuse focuses on a legal document known as a General Power of Attorney, the ease with which it can be obtained and used to fleece a vulnerable senior citizen by an unscrupulous individual, and the need to reform the laws that regulate the use of this document. Excerpts from the editorial:

• A general power of attorney gives one person control over another's assets, including money, stocks, real estate, pensions, family heirlooms and anything else of value. In the right hands, it's a valuable estate planning tool. In the wrong hands, it is a financial lethal weapon.

***

• The California Power of Attorney Act [begins at Section 4000 of the California Probate Code] was meant to ease the burden on families caring for elderly relatives unable to handle their own affairs. It allows them to quickly tap a senior's bank accounts to pay for his needs and to manage his financial affairs. The problem is that the lack of regulatory oversight has left the door open for rampant abuses. Any scoundrel can coerce an easily influenced elderly person into signing a power of attorney.

• Once this powerful document is in hand, the abuser is off to the races. A power of attorney is the key to the treasure chest. It's amazing, really, how easy it is to get a document that gives almost instant access to everything someone else owns. The form can be downloaded off the Internet or purchased at any stationery store. You don't need a lawyer. It doesn't have to be reviewed by any government agency. Power of attorney forms are not recorded anywhere.

The point is made that while the law regulates the conduct of the holder of the power of attorney, the problem is that there is one making sure that the holder is following the law. Awareness of any ongoing ripoff of the senior usually occurs when the damage can no longer be mitigated.

For more, see Theft of Elder Nation: An editorial series (State needs to revoke theft license) (may require free registration).

Go here for all posts and links to this Contra Costa Times editorial series on elder financial abuse.

Go here , go here , and go here for other posts on elder financial abuse. xero

California Legislature Urged To Strengthen Statutes Regulating Foreclosure Rescue

In Northern California, the sixth in a series of editorials on elder financial abuse in the Contra Costa Times urges the State of California to pass AB 1356, a law that would strengthen the current laws regulating foreclosure rescue operators in California. An excerpt from the article:

• The Legislature can and must take a major step now to curb foreclosure rescue abuses. AB 1356 would have done just that, but the law fell victim to petty politics. For starters, it would have required foreclosure rescuers to clearly let people know in bold letters that they would no longer be the homeowner.

• It would have also required that equity sales contracts be recorded with the county. That would have prevented foreclosure rescuers from selling the property to a third party who knew nothing about the individual's option to repurchase the property.

• Finally, the law would have mandated that anyone signing an equity sales contract must first undergo pre-loan counseling. Homeowners going through foreclosure are in a panic. They don't know where to turn. They're not thinking clearly. They often don't realize that there may still be time to salvage some of the equity. They have a tendency to hunker down and hide, ignoring notices from their lender. Yet what they should do is contact the mortgage company to try to work something out. Foreclosure rescuers pressure homeowners not to talk to anyone but them. Their game is to run out the clock until it's too late for homeowners to get real help. It's time to derail the foreclosure rescue gravy train. The Legislature must revive and pass AB 1356.

For more, including a story of an elderly couple facing foreclosure who had the equity in their home stripped, and ultimately lost their home after doing business with a foreclosure rescue operator called Bridgeport Capital Management in Irvine, see Theft of Elder Nation: An editorial series - Place legal curbs on 'rescue' practice.

Go here for all posts and links to this Contra Costa Times editorial series on elder financial abuse.

Go here for the proposed statute, AB 1356; and here for Bill Analysis on AB 1356.

For California's current state law regulating foreclosure rescue operators, see:

• California Home Equity Sales Contract Act - Section 1695 through Section 1695.17 of the California Civil Code;
• California Mortgage Foreclosure Consultants Act - Section 2945 through Sction 2945.11 of the California Civil Code.

Go here , go here , and go here for other posts on elder financial abuse. xero

Predatory Reverse Mortgage Scams Beginning To Surface?

The Miami Herald reports:

• With the housing market in decline, unscrupulous sales agents are popping up in the booming reverse mortgage industry, where reports of deceptive and high-pressure sales tactics are worrying lawmakers and consumer advocates alike. [...] Peter Bell, president of the National Reverse Mortgage Loan Association, said he doesn't believe the problem is widespread. But he conceded that sales agents left jobless by the housing crisis are migrating to the reverse mortgage industry and may "have a different type of mentality about moving transactions through quickly.''

***

• In [U.S. Congressional] committee testimony, [...], Prescott Cole, a lawyer from San Francisco, said some sales agents seeking larger commissions are wrongly advising seniors to buy tax-deferred annuities with their loan proceeds. [...] In one case, a 92-year-old man put $650,000 in a deferred annuity and died two years later, Cole said. But because the annuity didn't mature until 2063, the dead man's family had to pay a $150,000 fee to break the contract and access the money, said Cole, who works on behalf of the national Coalition to End Elder Financial Abuse.

• ''Long-term annuities are almost always inappropriate for seniors, as they can tie up retirement savings far beyond one's life expectancy,'' said Sen. Herb Kohl, D-Wis.

• The nation's largest provider of reverse mortgages, Financial Freedom Senior Funding Corp. of Irvine, Calif., is at the center of the controversy because of several lawsuits that allege borrowers were steered into inappropriate loans and annuities by sales agents and insurance brokers working in concert.

For more, see Seniors at risk from predatory lenders (As the popularity of reverse mortgages for seniors grows, the industry is proving fertile ground for predatory lenders, loan agents and brokers who see older, cash-strapped borrowers as easy pickings) (if link expired, try here or try here).

Go here for stories related to Reverse Mortgage Problems.

See also, Be wary of tapping into reverse mortgages (North Country Times):

• "We are seeing an increase in sales agents who have perfected the technique of selling annuities by playing on the seniors' fears of going into nursing homes or outliving their assets," said Prescott Coles, a spokesman for the coalition, as he testified before the committee.

Go here , go here , and go here for other posts on elder financial abuse. xero zebra

87-Year Old Ex-Chicago Cop Victimized In Foreclosure Rescue Scam; Fights To Stave Off Eviction

(originally posted 12-29-07)
In Chicago, Illinois, the Chicago Defender recently reported on the story of 87-year old Tellie Howard, a former Cook County, Illinois Sheriff's Deputy facing foreclosure who was reportedly scammed out the equity in his home of almost 46 years by foreclosure rescue operator Anthony Deveaux [aka Antonio Deveaux] in a transaction that was intended to be nothing more than a simple refinance of his home so that he and his wife could take care of an existing mortgage in default and have some home improvement work done. Not long after signing the purported refinance papers, a woman showed up at his front door, told him she was the new owner of the home and that she wanted him out, giving him a month to vacate.

According to the story, the matter forced Howard to place his 82-year-old wife, Addie, who is of ill-health and needs dialysis three days a week plus other care, in a nursing home until the nightmare with his home can be straightened out. An excerpt from one of the articles:

• According to a lawsuit filed by the Cook County Public Guardian’s office on behalf of Howard’s disabled wife Addie Howard -- who is now a ward of the state and living in a nursing home -- Anthony Deveaux [aka Antonio Deveaux] bought the property from Howard and his wife for $230,000. “Mrs. Howard is deemed disabled and mentally incompetent, therefore ruling out any assertions that she signed a real estate sales contract. Mrs. Howard was not present to sign any documents. Mr. Howard said he didn’t sign his property over to Deveaux. Mr. Howard thought he was signing a mortgage refinance contract, nothing else. Deveaux knew that Mr. Howard didn‘t know he was signing his home away,” Dawn Lawkowski-Keller, an attorney in the public guardian’s office said.

***

• Lawkowski-Keller also said Deveaux is making his living on scamming the elderly out of their homes and speculates that the more than $100,000 in proceeds from the alleged fraudulent scheme to buy the Howard’s home financed a Bentley automobile that Deveaux reportedly owns. “He conducts get rich quick real estate seminars and has videos on You Tube about his lifestyle. You can see him driving his Bentley on there,” Keller said.

For the whole story, see:

• Elderly man conned into signing over house (3rd story from the bottom of page) (Chicago Defender, 11-28-07),
• Judge stymies attempt to foreclose on elderly man's house (Chicago Defender, 12-28-07) (no longer available online),
• See also CBS2 (Chicago) report on Tellie Howard, Rev. Jackson Pressures Lenders On Foreclosures (read story #1) (read story #2) (watch video).

Go here , go here , and go here for other posts on elder financial abuse.

Go here and go here for other posts on deed theft by forgery, swindle, etc.

For related posts, see:

• Foreclosure Rescue - For Criminal Prosecutors Only,
• Criminal Prosecutions Of Foreclosure Rescue Operators deed theft zorro elder financial abuse xero

Texas AG Files Civil Suit To Void Deed Stolen From 85-Year Old Homeowner

This is an old story (August, 2005) coming from the office of Texas Attorney General Greg Abbott in which it filed suit to void a deed the execution of which was allegedly secured by a foreclosure rescue operator from an 85-year old homeowner through deception. According to the Texas AG's press release:

• The action cites Bobbie Heckard with fraudulently taking possession of the home of an 85-year-old Houston man under the guise of helping the homeowner prevent foreclosure. The man allegedly was led to believe he was only allowing Heckard to consult with his mortgage company, but in fact the transaction allowed her to take ownership of his home.

***

• Heckard’s scheme is designed to induce homeowners into transactions they would never consider if they knew the consequences. Heckard obtains a list of homes facing foreclosure, then tries to convince the homeowners that she offers foreclosure rescue services and will correspond with mortgage companies to resolve the problems. She then persuades homeowners to sign forms allegedly authorizing her to contact the mortgage companies on their behalf. In fact, the forms the homeowners sign are deeds transferring ownership in the homes to Heckard. Once Heckard obtains title to the property, she sells it, pockets the equity and threatens to evict the original homeowner.

For more, see:

1. Texas AG press release - Attorney General Abbott Files Emergency Action Halting Bogus Foreclosure Rescue Operation (Asset freeze and restraining order granted by judge severely restricts activities of pair scamming homeowners) (Go here for Spanish version of the press release),
2. Texas AG original lawsuit,
3. Temporary Restraining Order issued in this case.

Go here , go here , and go here for other posts on elder financial abuse.

Go here for other deed theft posts. deed theft zorro elder financial abuse xero

Deed Theft Suspect Cops Plea; Gets 10 Years In Texas Prison For Conning Senior Into Signing Away Home

This is an old story (October, 2006) which took place in Texas and originally reported by the San Antonio Express-News about a woman, named Charlotte Smith, who befriended 81 year old Wallace Moore, and subsequently proceeded to bleed Mr. Moore's accounts and transferred the ownership of his home into her name, according to criminal prosecutor's allegations. In carrying out the scam, Smith essentially "hid" Mr. Moore by placing him in a nursing home without telling his relatives. According to the story:

• After he fell and his health declined, Smith placed him in a facility referred to as "Hilltop Lodge," negotiating a lower rate because she said all he had was his Social Security check. "She put a note on his file that he was to have no visitors, especially family members," said Assistant District Attorney Joanne Woodruff. The staff at Hilltop would spend their own money to buy Moore clothes, shoes and personal items because he had become so tattered, she said. "In fact, she finally brought a bag of the oldest shoes you could imagine, and they didn't even fit him," Woodruff said. "I did see the shoes." Moore wanted to remain at Hilltop, which seemed like a well-run facility, Woodruff said.

Charlotte Smith was sentenced to 10 years in prison and ordered to pay more than $380,000 in restitution after pleading no contest to two counts of securing execution of documents by deception. For more, see:

• Woman pleads no contest to fleecing octogenarian,
• Woman gets 10 years for home sale scheme.

Go here , go here , and go here for other posts on elder financial abuse.

Go here for other deed theft posts. deed theft zorro elder financial abuse xero

Reverse Mortgage, Elderly Homeowner With Dementia May Be Recipe For Family Disaster

In Denver, Colorado, KUSA-TV Channel 9 reports on the story of a woman who finds out that not only was her elderly mother suffering from dementia, but that her mother obtained a $200,000 reverse mortgage on her home some time back and ended up going into foreclosure.

Jose Vasquez, an attorney with the non-profit group Colorado Legal Services, a non-profit legal services firm for low-income and elderly Coloradans, says for seniors who have a lot of equity in their homes should be cautions when refinancing. He suggests that children of elderly people keep track of their parents' activities.

For more, see Woman urges others to keep close tabs on elderly parents' financial affairs (read story) (watch video).

Go here , go here , and go here for other posts on elder financial abuse.

Go here for stories related to Reverse Mortgage Problems. xero elder financial abuse zebra

Reverse Mortgages: The Next Subprime? Part 2

Last month, the U.S Senate Special Committee on Aging held a hearing to address the concerns arising from reported financial abuses against the elderly in connection with the reverse mortgage industry. The hearing essentially reinforced two basic points:

1. When used wisely and carefully, a reverse mortgage is a great tool for senior citizens to tap into their home equity, tax free, the funds from which can be used for any purpose - thereby making their lives easier,
2. When sold recklessly by careless, untrained sales agents (or unscrupulously by sleazy sales agents), peddling reverse mortgages is a great way to screw elderly homeowners out of their home equity, leaving them in jeopardy of losing their homes.

In other words, it may not be the reverse mortgage itself that's bad, it's the person selling it that will ultimately determine whether (1) or (2), above applies (although watch out for "equity sharing, contingent interest" reverse mortgages, which may be available through non-HECM connected lenders).

Among some of the problems raised at the hearing:

1. unscrupulous sales agents convincing seniors to get a reverse mortgage and then use some of the proceeds to purchase a deferred annuity [some sales agents, working in tendem with home improvement contractors, will convince elderly homeowners that it is mandatory to use some of the proceeds to make overpriced, unnecessary home repairs],
2. reverse mortgage companies heavily recruiting sales agents, offering opportuinites to "double their commissions" by selling elderly homeowners reverse mortgages contemporaneously with annuity products,
3. no suitablity standards to determine if a reverse mortgage is right for a particular homeowner,
4. so-called "independent" HUD counselors that may not be all that independent,
5. no training, certification, or background checks required for HUD counselors; the counseling agency is required to have a HUD certification, but they can then turn around and hire anybody to actually do the counseling (ie. convicted felons, con artists, sleaze bags OK),
6. no real counseling requirements; face-to-face counseling not required - can be done over the phone; the "counseling" is limited to conveying an understanding of the loan terms - not of whether getting a reverse mortgage is actually a suitable arrangement for the particular senior considering the mortgage,
7. there are many ways for senior homeowners to lose their homes after getting the reverse mortgage that are never addressed during the sales pitch (contrary to what respected actor Robert Wagner and other paid celebrity spokespeople say on TV commercials and DVD marketing propaganda put out by the companies peddling reverse mortgages),
8. deceptive and misleading (without necessarily being technically incorrect) use of terms to describe reverse mortgages (ie. "HUD-regulated," "government insured" and " a benefit from the Federal government") to instill in the senior citizen homeowner trust and confidence in the product,
9. selling reverse mortgages to unmarried seniors who may be bound for a nursing home (spending 12 months in a nursing home by an elderly homeowner is enough to cause a due date acceleration of the reverse mortgage, thereby forcing a sale of the senior's home if they can't otherwise pay it off by cutting a check or refinancing it).

Written statements were submitted by witnesses who testified at the hearing:

• Statement of Carol Anthony, daughter of a victimized elderly homeowner of an unscrupulous sales agent selling a reverse mortgage tied to an annuity, resulting in significant loss of home equity,
• Statement of Prescott Cole, Senior Staff Attorney, California Advocates for Nursing Home Reform on behalf of Coalition to End Elder Financial Abuse, on the abusive marketing practices engaged in by some selling reverse mortgages,
• Go here for links to the written statements submitted by other witnesses, as well as the opening statements from the committee chairman, Sen. Herb Kohl (D-WI.) and the ranking member, Sen. Gordon Smith (R-OR).

To watch the actual webcast of the hearings, see Reverse Mortgages: Polishing not Tarnishing the Golden Years (requires Real Player media player).

Go here for Reverse Mortgages: The Next Subprime? Part 1.

Go here , go here , and go here for other posts on elder financial abuse.

For stories related to Reverse Mortgage Problems, go here , and go here. xero zebra reverse mortgage yak

Regulator Reviewing Elderly Complaints Against Financial Advisors With Lofty Titles

The Wall Street Journal reports:

• The Financial Industry Regulatory Authority is starting to evaluate complaints by investors about brokers who hold any of three popular designations that imply expertise in working with seniors and retirees. Susan Merrill, the agency's enforcement chief, says her staff is evaluating the requirements behind the three most popular senior-related designations: Chartered Retirement Planning Counselor, Certified Senior Advisor and Chartered Advisor for Senior Living. The agency also is compiling the records of complaints against advisers who hold those designations, to see whether any patterns exist.

• Many of the more than 50 titles that imply expertise in advising seniors or retirees reflect training that shows advisers "how to sell to this market" rather than how to help clients, says Jean Setzfand, director of financial security for AARP, the Washington-based advocacy group for people 50 years old and older.

For more, see Title Check (The latest news from the world of financial planners) (2nd story from the top; may require subscription - if no subscription try here, then click link).

Go here , go here , and go here for other posts on elder financial abuse. xero

Reverse Mortgage Lender Denies Equity Stripping Charges

RISMedia.com reports:

• Financial Freedom, the Irvine, California-based reverse mortgage lender, denies any wrongdoing in a case charging they used unlawful sales practices targeting seniors by inflating fees and using the proceeds to purchase additional financial products. The U.S. Senate Special Committee on Aging heard testimony [December 12] following its heightened concern over lawsuits recently filed against companies offering these types of loans.

***

• In a separate story, a suit filed on behalf of Ernestine Boach against Financial Freedom states that she was allegedly conned into purchasing a reverse mortgage with exceptionally high fees and then sold several insurance and annuity products with the proceeds. The case, Ernestine Boach v. Financial Freedom Senior Funding Corporation was filed in San Diego Superior Court on January 11, 2007 and alleges that the Boach was advised to take out a reverse mortgage from Defendant Financial Freedom Senior Funding Corporation for $171,000 on the home she owned. The proceeds of which were to be used to purchase insurance products, including, a Fidelity and Guaranty deferred annuity with enormous surrender charges for $80,000, and a $44,350 immediate annuity to fund payments on a $250,000 flexible premium life insurance policy (also containing surrender charges).

• Boach’s San Diego attorney Ronald A. Marron claims that this is an instance of a pervasive “equity stripping scheme” which involves Financial Freedom’s agents working in tandem with insurance brokers using reverse mortgage proceeds.

For more, see Reverse Mortgage Lender Denies Abuse against Seniors Charges.

Go here , go here , and go here for other posts on elder financial abuse.

Go here for stories related to Reverse Mortgage Problems. xero zebra

Elder Protection vs. Elder Free Will

Golden Opportunities is a series of articles from The New York Times examining how individuals, businesses and investors seek to profit from the soaring number of older Americans in ways helpful and harmful. The most recent column in the series starts as follows:

• Eight years ago, when Robert J. Pyle was 73 years old, he had about $500,000 in the bank and owned a house in Northern California worth about $650,000. He was looking forward to a comfortable retirement. Today, at 81, he has lost everything. Mr. Pyle, a retired aerospace engineer, now lives in his stepdaughter’s tiny, mountainside home in a room not much larger than his bed.

For more on what happened to Mr. Pyle, see Shielding Money Clashes With Elders’ Free Will.

Go here for links to all of the columns in Golden Opportunities - A Series From The New York Times.

Go here , go here , and go here for other posts on elder financial abuse. xero

Upstate NY Man Gets 3 To 6 Years For Fleecing 80+ Year Old Grandmother Of $875K

The New York State Attorney General's Office recently reported:

• Attorney General Andrew M. Cuomo [recently] announced the guilty plea of a Delaware County man who stole more than $875,000 from his grandmother. Michael Schmitt, 38, of Franklin, pleaded guilty to Grand Larceny in the Second Degree (class C felony) [...] .“My office is committed to protecting New York’s elderly population from those who would seek to victimize them for financial gain,” said Attorney General Cuomo. “This case is especially egregious since this defendant stole from his very own grandmother.”

For more, see:

• Delaware County Man Pleads Guilty To Stealing More Than $875,000 From His Grandmother (Michael Schmitt allegedly spent her money on gambling, lavish personal expenses) (NY AG Press Release),
• Man imprisoned for thefts from grandmother (Schmitt will go to prison for three to six years; Binghampton Press & Sun-Bulletin).

Go here , go here , and go here for other posts on elder financial abuse. xero

Montana Woman Gets 5 Years For Stealing Bank CDs, Home Sale Proceeds From 80+ Year Old Mother

In Billings, Montana, The Billings Gazette reports:

• A Billings woman who admitted to stealing $300,000 from her elderly mother in a bankruptcy fraud scheme will serve the maximum five years in federal prison. "I would just like to apologize and ask forgiveness from God and everyone," an emotional Nancy Florence Short, 63, said Friday. [...] Short pleaded guilty in July to concealing assets and making false statements in a scheme that started in 2001 with bankruptcy filings in Montana. Prosecutors said Short converted $300,000 in certificates of deposit from her mother without authorization and took $22,780 from the sale of her mother's house in Texas, knowing that the money was intended for her mother's care.

***

• When Short placed her mother in [an assisted care facility], she isolated her by diverting her mail and denying access to her car, [U.S. District Judge Richard] Cebull said. Short also gave the staff a false medical history of her mother by saying she suffered from Alzheimer's and was paranoid. When Short's mother discovered the theft, the staff and police initially didn't believe her allegations because of the supposed Alzheimer's, Cebull said. Short was the victim's only contact outside [the care facility], he said.

For more, see Woman gets 5 years in bankruptcy fraud.

Go here , here , here and here for other posts on elder financial abuse. xero

California Man Guilty Of Fleecing Grandparents; Sending Home Into Foreclosure

In Stockton, Calfornia, The Stockton Record reports:

• A Stockton man who was entrusted to help his elderly grandparents find a new home but instead sent their Calandria Street condominium into foreclosure was found guilty [last] Thursday of identity theft and fraud charges. Rodney Jackson Jr., 28, awaits a Feb. 11 sentencing on eight felony counts and an enhancement for committing a white-collar crime with a loss greater than $100,000, San Joaquin County Deputy District Attorney James Lewis said. Jackson's guilty counts include theft from an elder, identity theft, forgery and loan fraud. A Feb. 25 court hearing was set to decide what happens to the condominium. The foreclosure was frozen in April pending the outcome of Jackson's trial.

For more, see Man guilty of defrauding elders.

Go here , go here , and go here for other posts on elder financial abuse.

Go here for other deed theft posts. deed theft zorro xero

Reverse Mortgages: The Next Subprime? Part 1

An opinion column in Salon magazine describes the consideration currently being given by Congress to the reverse mortgage industry, and the concerns raised because of some in the industry being accused of ripping off a significant part of the home equity accumulated by senior citizens over the years by combining a granting of a reverse mortgage with the contemporaneous purchase of deferred annuities [Editor's Note: Another technique used by some scam artists is to combine a reverse mortgage with the making of required home improvements, where the loan salesperson and the home repair contractor are in cohoots]. For the article, see The next subprime: Reverse mortgages.

Go here , go here , and go here for other posts on elder financial abuse.

Go here for stories related to Reverse Mortgage Problems. xero zebra

90 Year Old Victim Of Forgery, Deed Theft, Equity Stripping Finally Gets House Back; Mortgage Voided

In Toronto, Canada, The Toronto Star reports:

• For Paul Reviczky, a 90-year-old victim of mortgage fraud, it's the best possible ending to a two-year nightmare. In a precedent-setting decision, Ontario superior court has taken another step toward protecting victims like Reviczky from being on the hook for hundreds of thousands of dollars. The court ruled this week that the Hungarian immigrant isn't responsible for the $300,000 mortgage taken out on his home, after it was sold in 2005 without his knowledge.

***

• The decision is the first of its kind in the province since a landmark Court of Appeal ruling in February. That decision found that even a bona fide purchaser can't legally buy property from a fraudster.

• This decision expands on the previous one by finding that a $300,000 mortgage, obtained by the people who purchased Reviczky's home, was invalid because the basis for the transaction was a fake power of attorney document forged by the fraudsters who sold the elderly man's home.

***

• Justice John Macdonald's ruling hands the weighty bill back to the mortgage dispenser, which is HSBC and its insurer (presumably the title insurance underwriter).

For more, including how the victim lost his house in the first place, see Man, 90, off hook for loan: Court (Landmark ruling lifts $300,000 burden).

For follow-up stories, see:

• Law Times: Bank didn’t take proper steps (Mortgage fraud decision will impact real estate industry),
• The Toronto Star: House fraud decision rocks industry (Bank `did not take steps to scrutinize the power of attorney,' judge rules).

For those looking to get some idea of what the concept of "bona fide purchaser" is all about, see The Bona Fide Purchaser for Value of a Legal Estate Without Notice, and then check the case law of your home state to see how your state's judiciary has applied the legal principles that underlie "bona fide purchaser" status.

Go here , go here , and go here for other posts on elder financial abuse.

Go here for other deed theft posts. deed theft zorro xero