She trusted her financial advisor with everything. Then he stole $300K.

By Karin Price Mueller 

He promised to take care of her money.

Pay her bills.  

Help her with investments to make sure her money would last.

Instead, he siphoned more than $300,000 from the 90-year-old woman’s accounts. Rather than pay her bills, he used the funds to pay his own, prosecutors alleged.

What John Boston, once a legit financial advisor from Verona, did to his victim is a classic case of elder fraud.

He’s now facing five to 10 years in state prison and a fine of up to $150,000 after his convictions for theft, prosecutors said. Sentencing is later this summer.

“Cases like this demonstrate the devastating impact financial exploitation can have on older adults and their families,” Acting Insurance Fraud Prosecutor Bernard Cooney said in a statement.

The Attorney General’s Office spotlighted the case last week in recognition of World Elder Abuse Awareness Day.

The victim was newly flush with cash after inheriting “substantial assets” when her brother died.

Prosecutors alleged Boston, 50, signed a contract with the victim to manage her assets and her financial affairs. He was indeed a registered financial adviser, but he never told his employer, and he never registered the woman as a client — as required by the Financial Industry Regulatory Authority, or FINRA.

He convinced the woman to give him a durable financial power of attorney, a document to grant permission to a trusted person to manage your money if you’re ever incapacitated and unable to make your own financial decisions.

Instead of working for her best interests, Boston took out funds through a series of ATM withdrawals, bank transfers and other transactions, prosecutors said. He diverted her Social Security benefits for his own personal use, they said.

It took less than two years.

Elder abuse can come in many forms, but we’re going to stick to financial exploitation here. It causes $28.3 billion in losses annually, a staggering number reported by the National Council on Aging. It defines elder abuse as “an intentional act or failure to act that causes or creates a risk of harm to an older adult.”

Elder financial abuse can happen to anybody, and it’s not only traditional scammers at work.

“Perpetrators can range from close family, extended family, caregiving staff, or strangers,” according to the New Jersey State Library. “They may take money without permission, fail to repay money they owe, charge too much for services, or not do what they were paid to do.”

Elder financial abuse is vastly underreported, the National Adult Protective Services Association said.

Only one in 44 cases is actually reported, it said, and 90% of cases involve family members or others who are trusted — like a trusted financial advisor.

People often don’t report financial losses from fraud because they’re embarrassed. We’ve seen that happen time and time again.

But you can help to protect your loved ones by looking out for some red flags. These 14 warning signs are offered by the American Bankers Association. Look out for:

1. Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals
2. Changing from a basic account to one that offers more complicated services the customer does not fully understand or need
3. Withdrawals from bank accounts or transfers between accounts the customer cannot explain
4. A new “best friend” accompanying an older person to the bank
5. Sudden non-sufficient fund activity or unpaid bills
6. Closing CDs or accounts without regard to penalties
7. Uncharacteristic attempts to wire large sums of money
8. Suspicious signatures on checks, or outright forgery
9. Confusion, fear or lack of awareness on the part of an older customer
10. Checks written as “loans” or “gifts”
11. Bank statements that no longer go to the customer’s home
12. New powers of attorney the older person does not understand
13. A caretaker, relative or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation
14. Altered wills and trusts

If you see something suspicious, you can report it to several different agencies.

Start with Adult Protective services at (855) TELL-APS, or you can see a list of county offices here.

For investment and banking scams, contact the state Bureau of Securities by phone at (866) I-Invest or email at njbos@dca.lps.state.nj.us. You can also file a complaint online.

The Medicaid Fraud Control Unit handles cases involving Medicaid recipients and fraud, theft, or abuse in health care settings. You can email NJMFCU@njdcj.org or call (609) 292-1272. The state Long-Term Care Ombudsman will handle exploitation in nursing homes and assisted living facilities. Call 1-877-582-6995 or email ombudsman@ltco.nj.gov.

Let’s all work to help prevent fraud and take care of our loved ones and neighbors. 

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She trusted her financial advisor with everything. Then he stole $300K.