Company at center of 7 Action News guardianship investigation barred from doing business

By: Heather Catallo

(WXYZ) — The guardianship company at the heart of a 7 Action News investigation has been banned from working in Michigan.

'I just want my parents back.' Woman says company imprisoned her parents in their own home

According to a new court order obtained by the 7 Investigators, Cathy Kirk and Caring Hearts Michigan Inc. are “permanently restrained from operating, in any form, a professional guardianship or conservatorship entity.”

Caring Hearts Michigan backs out of disputed guardianship case in wake of 7 Action News report

In 2019, family members said they were prevented from seeing Barbara Delbridge and Robert Mitchell after Caring Hearts installed a six-foot-tall privacy fence around their Utica home.

The 7 Investigators exposed how Caring Hearts Michigan Inc. hired a company called Executive Care and brought in multiple caregivers to stay in Barb and Bob’s home 24 hours a day. Both companies were owned by Catherine Kirk, who as guardian and conservator, billed Barb and Bob’s estate that was worth about $2.7 million for all that care.

Family members were later awarded guardianship of the couple after our stories exposed the case. Sadly, both Barb and Bob have since passed away.

The latest court order is an agreement with the Michigan Attorney General’s Office and Caring Hearts Michigan and resolves the AG’s intervention in the case. It does not prevent the AG from pursuing a criminal investigation.

The AG launched a probe shortly after the 7 Investigators first made the case public in May 2019, and the Michigan Supreme Court asked the Attorney General to step in.

Under the permanent injunction, Kirk must immediately cease operations. The order “shall not be construed as an admission of any liability and/or wrongdoing of any kind by any of the foregoing parties.”

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Company at center of 7 Action News guardianship investigation barred from doing business

Guardianship company to dissolve after ‘self-dealing’ $400K in contracts from elderly couple

By Justine Lofton

MACOMB COUNTY, MI – A guardianship company will dissolve after its owner illegally charged an elderly couple $400,000 for services from companies she and her husband own.

The “self-dealing” case that shows a court-appointed guardian was financially benefiting by hiring her own companies to provide services and charging a “shocking amount of money” was settled out of court by Michigan Attorney General Dana Nessel. Financial aspects of the settlement have not been released but the injunctive aspects are detailed in a news release from the AG’s office.

Guardianship company Caring Hearts Michigan Inc. will immediately cease operations and legally dissolve by the end of the year, the release said. In addition, [the owner and] her employees are permanently barred from operating any other guardianship or conservatorship entity.

Of particular concern in this case was a web of connections between [the] guardianship company and two other companies [the owner] hired to provide services to elderly people she had guardianship over.

“Our involvement in this case revealed what we feared: fiduciaries with a clear financial conflict of interest who billed a shocking amount of money in a relatively short period of time,” Nessel said.

Caring Hearts was appointed by Macomb County Probate Judge Kathryn George as both guardian and conservator for Robert Lee Mitchell and Barbara Delbridge, despite a petition submitted by the daughter and stepdaughter of the couple.

In a span of six months, Caring Hearts Michigan; Executive Care, a 24-hour in-home care company, also owned by [the owner of Caring Hearts Michigan]; and [a] law firm billed the elderly couple $400,000. Almost 72 percent of the bills were for Executive Care.

The Estates and Protected Individuals Code prohibits this kind of financial self-dealing by the guardian, Nessel said. In addition, courts are not permitted to appoint a guardian agency that financially benefits from directly providing housing, medical, mental health or social services to the legally incapacitated individual, she said.

Nessel places responsibility on the courts to ensure that the state’s guardianship system is protecting the vulnerable and that court-appointed guardians and conservators fulfill their fiduciary responsibilities to those in their custody.

“To help, my team continues to look for similar instances of self-dealing and we will take swift action when it is discovered,” Nessel said.

Complaints about professional guardian or conservator entities who are engaging in similar self-dealing can be filed online with the Attorney General’s office.

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Guardianship company to dissolve after ‘self-dealing’ $400K in contracts from elderly couple

Nessel: Macomb County Probate judge's guardianship appointment violated law

Macomb County Probate Court Judge Kathryn George

By Jameson Cook

A Macomb County judge violated state law when she appointed a guardian-and-conservator company that reaped financial benefits from the appointment, according to Attorney General Dana Nessel.

State Public Administrator Michael Moody, on Nessel’s behalf, argues in a legal document Friday that Probate Judge Kathryn George created a law violation by appointing Clinton township-based Caring Hearts of Michigan Inc. as guardian and conservator for Robert Mitchell and Barbara Delbridge last November, over a daughter and stepdaughter of the couple.

Caring Hearts hired Executive Care to perform the care for the couple, according to the state. Both companies are owned by Cathy Kirk. In addition, Caring Hearts employed the firm of her husband Robert Kirk -- Kirk, Huth, Lange and Badalamenti -- for legal services. The trio of companies share the same address on Hall Road, east of Romeo Plank Road.

Caring Hearts charged more than $250,000 for about six months of care.

George through a spokeswoman declined to comment Monday, referring the matter to court officials.

The Attorney General in the filing Friday seeks to intervene in the Probate case, saying that all prior transactions are “voidable” due to the arrangement.

Michigan Attorney General Dana Nessel

The law in question says, the “Court shall not appoint as guard an agency, public or private, that financially benefits from directly providing housing, medical, mental health or social services to the legally incapacitated individual.”

Moody comments in the brief, “The intention behind this provision is to prevent conflicts of interest.”

“All of these financial transactions set forth in Caring Hearts’ Final Account are presume to be affected by a conflict between personal and fiduciary interests, and therefore voidable,” Moody adds.

Caring Hearts attorney Edward Nahat disputed Nessel's claims Monday, saying state attorneys misapplied the law and should not have sought to enter the case.

"The Attorney General's petition ... misapplied the statute to these circumstances and is over-reaching by trying to intervene in a case she shouldn't be involved in," Nahat said.

He said the law quoted by state lawyers applies to investments and housing transactions, neither of which Caring Hearts and Executive Services were involved.

He said George knew of the arrangement.

Nahat called Nessel's involvement "heavy handed," noting that it has drawn publicity.

He said Caring Hearts supports a review of the accounting and charges in the case.

"A remedy is already available to the family," he said. "They can get their own day in court. They don't need the Attorney General's help."

Probate Court in September 2018 instituted a policy that requires a company or fudiciary must reveal whether a person related to the company or fudiciary is performing a service for the fudiciary or company, according to John Brennan, deputy court administrator.

Brennan said he does not believe the relationships were disclosed in the Mitchell and Delbridge cases.

Expenditures will be reviewed over the next several months. A hearing in the case is scheduled for Jan. 10.

Nessel issued a news release on the matter Monday.

“It is absolutely incumbent on the courts to ensure that the state’s guardianship system is providing properly for the vulnerable and that the court-appointed conservators fulfill their fiduciary responsibilities to those in their custody,” she said. “That does not appear to be happening in the case of Caring Hearts, which was appointed by Judge Kathryn George as guardian and conservator for Robert Lee Mitchell and Barbara Delbridge.”

Nessel added that the "Estates and Protected Individuals Code specifically prohibits certain financial self-dealing by the guardian with respect to the ward.”

Nessel announced in May that George was under investigation for her role in the case involving the couple following reports initiated by WXYZ-TV (Channel 7).

State Supreme Court Chief Justice Bridget McCormack and Macomb Chief Judge James Biernat Jr. at that time of the announcement released a joint statement in support of the probe.

Family members of the couple said George should have appointed them as guardians and conservators to watch over the care and finances of the couple, both 70 or older and in declining health.

Robert Mitchell and Barbara Delbridge

Mitchell’s daughter, Marcie, and other family members complained their visits were limited and that caregivers installed a 6-foot fence around the property near Hall Road and Van Dyke Avenue that blocked the vision of family members who resided next door. The said the couple were virtual prisoners in their home.

They also raised questions about the guardian and conservator company's spending from the couple's more than $2.5 million in assets.

Caring Hearts and Executive Services in early June withdrew from serving as guardian and conservator. Attorney Terry Gilsenan was named temporary guardian, and attorney Martin Brosnan was name temporary conservator.

On June 26, Judge Biernat, who had taken over the case, granted Marcie Mitchell guardianship over her father, Robert, and Anita Little gained guardianship over her sister, Delbridge.

The pair on Friday also were named conservators, although each has to file a bond and paperwork in order to take over.

Attorney Frank Cusumano said Monday he plans to file a legal action on Little's behalf "to unwind the transactions" involving Caring Hearts, Executive Services and the law firm.

"Anita Little wants to do her part to make sure that this activity does not occur and injure another family," Cusumano said.

The older couple are currently residing in a facility in Genesee County, closer Marcie Mitchell’s Clarkston home.

The case developed as Nessel has been vowing to crack down on elder abuse. She formed Michigan Elder Abuse Task Force earlier this year shortly after she took office. This summer, she conducted a statewide “listening tour” to hear complaints about elder abuse and complaints about Probate Court, which oversees will and estates of incapacitated and deceased individuals.

Marcie Mitchell and cousing Gretchen Sommers

Robert Kirk last month was removed as a state Public Administrator for appointment to certain Probate cases.

George has served as a Macomb Probate Judge since 2003. More than a decade ago, George came under the scrutiny of state officials and removed as chief probate judge for her relationship with a now-defunct guardianship company, conflict with the second probate judge and dysfunction at the court.

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Nessel: Macomb County Probate judge's guardianship appointment violated law

Please consider signing this petition: Stop the horrific abuse of Michigan's vulnerable by attorneys and judges

Local family says guardianship cost elderly woman $123K for 3 months of care

By: Heather Catallo

(WXYZ) — More than $123,000. That’s what a local family says a guardianship cost their elderly mother for three months of care. It was a huge chunk of her life savings.

It’s the same guardianship company that 7 Investigator Heather Catallo exposed back in May when they were accused of cutting off family contact with an elderly couple.

The family in this case originally didn’t want to talk to us on camera, but when they saw the fees that Caring Hearts Michigan is asking a judge to approve – they agreed to speak out.

Piera Franklin is 90 years young and still loves working in her yard.

• 'I just want my parents back.' Woman says company imprisoned her parents in their own home

After she had some health issues in February, Macomb County Probate Judge Kathryn George appointed Caring Hearts Michigan Inc. as Piera’s temporary guardian and conservator. That means Caring Hearts had total legal control of Piera. As her conservator, they also had total control of her money.

Caring Hearts Michigan Inc. is owned by Cathy Kirk. Court records show, Kirk used her husband’s law firm to bill the estate. Kirk also used one of her companies, Executive Care, to provide 24/7 in-home care for Piera.

Please note: Caring Hearts Homecare of Southfield is not affiliated in any way with Cathy Kirk’s Caring Hearts Michigan Inc.

Piera said that she didn’t need that. She cooks, cleans, washes her clothes and didn’t want that kind of 24/7 help.

In May, the 7 Investigators were in the courtroom when the judge took Caring Hearts off the case and granted guardianship and conservatorship of Piera to her son , John. But the Franklin family was stunned when they recently got the final accounting from Caring Hearts.

For only 91 days of care, Caring Hearts wants the court to approve:

• $10,5224.37 for guardianship services
• $19,369.90 in legal fees for Cathy Kirk’s husband’s law firm
• $86,304 for home care charged by Executive Car

• Caring Hearts Michigan backs out of disputed guardianship case in wake of 7 Action News report
• Michigan AG opens investigation into Macomb Co. probate case following 7 Action News report

“Is more than $86,000 for 91 days of care reasonable,” asked 7 Investigator Heather Catallo.

“Not in my opinion,” said John Perrin, an attorney hired by Piera’s son, John Franklin. “Based on the invoices themselves, there’s clearly overcharges here.”
“Do you feel like they earned that money?” Catallo asked Piera.

“No! No way no way! Because they didn’t do anything. No help for me, no bath, nothing, nothing,” Piera responded. “I make my own bed. I clean up the house. I did everything! Was nothing done. They sit there with their book and watching TV. That’s it!”

• Why did a Macomb Co. judge put strangers in charge of an elderly couple instead of family?
• Family awarded guardianship of Macomb Co. couple after 7 Action News Investigation

This is 90-year-old Piera Franklin talking about the caregivers from Caring Hearts MI Inc. On ⁦@wxyzdetroit⁩ at 6, I’ll show you why her family is objecting to $123k in legal, guardianship, & care fees for 91 days. ⁦⁦@MIAttyGen⁩ ⁦@MISupremeCourt⁩ #probate pic.twitter.com/q2ZPzmkXyh

— Heather Catallo WXYZ (@HeatherCatallo) August 13, 2019

Piera said she did like some of the home aides, but she says one caregiver had a fight with her boyfriend in the driveway of Piera’s home. She said it made her feel scared, like she did during the war in her childhood in Italy.

“I was raised in the war time, and I remember when the bombs coming, I would get stomach problem, and I felt the same anxiety in my stomach,” said Piera.

In court filings, Perrin argues Caring Hearts Michigan Inc. “engaged in serious conflicts of interest that resulted in waste and dissipation of Ms. Franklin’s savings.”

“There’s one particular occasion where I see 48 hours billed for one caregiver in a single day,” Perrin said. “The cumulative time in that single day wound up being almost $2,500.”

Other fees include:

• Hours of overtime for what Perrin says are non-skilled caregivers charging above-market rates of $45 per hour;
• $1,760.50 to change the locks on Piera’s home (family members say they don’t know why the locks needed to be changed);
• $1,129.81 for correspondence with banks and closing Piera’s accounts so they could be moved to First State Bank where Cathy Kirk’s husband, Robert, is a board member.

Now, Piera has less expensive caregivers for fewer hours in the day. She says now she is worried about how much money she was charged by caring hearts.

“I worked hard to save, 10 hours a day,” said the mother of five.

The 7 Investigators spoke with the Michigan Attorney General’s Office and they say their financial crimes unit is aware of this case, but they can’t confirm or deny if they are investigating.

The Attorney General is investigating a different probate case first exposed by the 7 Investigators that also involves Caring Hearts Michigan Inc.

Lawyers for Caring Hearts Michigan Inc. deny any wrongdoing, and they have told the court they will review some of the billings. They say the relationship between Kirk’s companies while serving Piera did not violate any law or court rule.

Kemp Klein Attorney Ed Nahhat sent the 7 Investigators this statement late Tuesday:

“Caring Hearts disclosed in writing to Court Administrator John Brennan on April 4, 2018, its common ownership of Executive Care. This was many months before the Court’s "related persons" policy was issued. The policy assures disclosure upon the annual account.

In these cases, all interested persons, and the court, had disclosure; they knew that the companies had common ownership as intended by the policy.

Neither Caring Hearts nor Executive Care did anything wrong when doing what the court ordered them to do: care for someone according to their needs and preferences. Mrs. Franklin was very grateful to Caring Hearts, as she wanted her care to be at home, extensive and high quality, and she wanted only certain persons to take care of her. In fact our Executive Care’s service was so valued that her son rehired them at one point, and his mother specifically asked for their employees to continue serving her, even after Caring Hearts was replaced. Simply put, she liked her care at home, and that is always more expensive.

Caring Hearts and Executive Care are ready and willing to be examined for all that they did and the fees they charged. That’s what trials are for.

It’s about money.

While family are entitled to challenge fees, we fear Mrs. Franklin is now being scripted to create an inaccurate public image of Caring Hearts. It’s sad to see a good company get publicly attacked when the family already has a court of law available to them, where both parties have a fair chance to present their case."

Full Article & Source:
Local family says guardianship cost elderly woman $123K for 3 months of care

Ethics questions raised about Sterling Heights mayor's role in guardianship case

STERLING HEIGHTS, Mich. (WXYZ) — It’s a controversial guardianship case that’s caught the attention of the Attorney General and the Michigan Supreme Court.

When the 7 Investigators started investigating this guardianship case, we interviewed the family involved and we asked to interview the owner of the guardianship company so we could tell both sides of the story.

That owner refused to talk to us, but ever since we first aired this story, the lawyer for the guardianship company has taken to Twitter and Facebook to make several public comments about the family in this case.

And because that lawyer is also the mayor of Michigan’s 4th largest city, many of you had questions about his role in this.

“I’m Michael Taylor, I’m an attorney for Caring Hearts and Executive Care,” said Sterling Heights Mayor Michael Taylor as he approached 7 Action News outside a home in Utica where the we had been interviewing members of the Mitchell and Delbridge families about a controversial guardianship case.

Marcie Mitchell had been trying to get guardianship of her dad Bob Mitchell and her step-mom Barb Delbridge, who suffer from dementia and other health problems.

“I just want my parents back,” said Marcie in May.

Even though Marcie had priority under the law to become her dad’s guardian, Macomb County Probate Judge Kathryn George said she had “grave concerns” and instead appointed a company called Caring Hearts Michigan Inc. as guardian. Caring Hearts then hired Executive Care as caregivers for Bob and Barb. Both companies are tied to Robert and Cathy Kirk.

And that’s where Michael Taylor comes in: he works for Robert Kirk’s law firm.

“I’d love to have you come to my office so I can show you everything that’s been going on,” said Taylor. “We can absolutely do that,” said 7 Investigator Heather Catallo.

Taylor later rescinded that offer, telling the 7 Investigators that he had to follow his clients wishes and refused to do an interview with us.

But that did not stop him from making dozens of public Facebook posts and Tweets about the case.

“Hi Facebook, it’s me, Sterling Heights mayor Michael Taylor,” said Taylor during a Facebook Live video.

“It’s unfortunate that the full story is not being reported.”

On social media Taylor said Marcie’s “neglect is the sole reason that she did not get appointed” guardian and made frequent comments about Bob and Barb’s health conditions.

“It’s scary that he’s able to get away with the statements that he’s made without proving the facts that he has none of,” said Taylor.

Several of our viewers on Facebook started questioning Taylor’s role in this case.

Denise writes: “Isn’t being a Mayor of Sterling Heights, and getting involved as a lawyer for some clients a conflict of interest?”

Elizabeth says, “How in the world can the Mayor be messed up in some scheme like this?”

The 7 Investigators also received emails from viewers asking, “How are we to be assured that Mr. Taylor has not used his position as mayor to the advantage of his business associates?”

And this isn’t the first time some of Mayor Taylor’s 130,000 constituents have questioned his use of social media. In 2017, Taylor called someone on Facebook an expletive. Taylor said the guy was a troll who had been harassing him, but some Sterling Heights residents told us at the time they did not approve of the language Taylor used.

Mayor Taylor and Sterling Heights officials would not talk to us on camera about Taylor’s recent actions.

But the city attorney told us in an email that the job of mayor is a part time position that pays $23,122 a year. That means Michael Taylor is allowed to have outside employment.

But what about the city’s Ethics Resolution that Taylor supported when it passed back in 2013?

Under the Fitness for Office section, it says “Public servants should avoid engaging in any conduct, which is likely to bring discredit on themselves and the governmental bodies in which they serve.”

“If you look at some of the Facebook postings, you look at some of the tweets, and you look at some of the language, he could be borderline in violation of his own resolution,” said former Wayne County Auditor General Brendan Dunleavy. Dunleavy says Taylor risks discrediting city hall with his public comments.

“As mayor you set the tone for the city. People look to you for guidance, people look to you for what’s acceptable behavior,” said Dunleavy.

The Sterling Heights City attorney told us that “without knowing the content” of Mayor Taylor’s social media posts, they aren’t in a position to decide whether they violate the ethics ordinance.

When the 7 Investigators asked why they haven’t read the public posts, a city spokeswoman did not respond.

Taylor is no longer the attorney of record for Caring Hearts Michigan. He was replaced on the case shortly after our initial stories aired.

And for the guardianship case, it was reassigned to a different judge and family members now have guardianship of Bob and Barb.

Here are the questions 7 Action News posed to the Sterling Heights City Attorney, Marc D. Kaszubski, of O’Reilly Rancilio P.C.:

How many hours a week does the mayor work for the city?

"The City of Sterling Heights operates under a council-manager form of government wherein the City Council hires a full-time City Manager as the Chief Administrative Officer to perform and coordinate all administrative duties of City. As is the case in many council-manager municipalities across the State, the Mayor of Sterling Heights is a part-time, elected position. The Mayor’s hours vary, depending on the number of events attended, Council meeting schedule and length, conferences attended, office hours, and the like."

What is the mayor’s city salary?

"The Mayor is compensated at a rate set by the City’s Elected Officials Compensation Committee (EOCC), an independent commission established in accordance with State law. For the current fiscal year, being July1, 2019 to June 30, 2020, the EEOC has set the salary for the elected position of Mayor at $23,122."

Do Mr. Taylor’s social media posts violate the city ethics ordinance?

"The Mayor does not forfeit the right to comment because he is an elected official in Sterling Heights, especially on topics unrelated to City business. Without knowing the content of the specific media posts you are referring to, we are not in a position to analyze or comment upon whether there is any violation of the City’s ethics resolution. To the extent these posts relate your prior reporting on his legal representation on behalf of the Kirk & Huth law firm, there is no nexus to his elected official duties."

Does the type of Mr. Taylor’s outside employment violate the ethics ordinance?

"No. Under the council – manager form of government, the Mayor is not a full-time position."

What safeguards are in place to make sure Mr. Taylor is not approving contracts or other city business that involve any of the clients of Kirk and Huth?

"The Mayor does not have unilateral power to approve any contract on behalf of the City. That power rests with the entire City Council. With that said, there are standards set forth in the City Charter, City Code, and Ethics Resolution that safeguard against any potential conflicts of interest."

How many contracts has the city had with Kirk & Huth since Mayor Taylor has been in office?

"There have been no contracts between the City of Sterling Heights and Kirk & Huth.

In the interest of full disclosure, however, the City did engage the class action law firm Edelson PC out of Chicago to pursue litigation against opioid manufactures. Edelson represents multiple municipalities on this issue and Kirk & Huth were hired by Edelson to assist them in representing their other Macomb County clients (Warren, Sterling Heights, and Harrison Township). Edelson’s contracting directly with Kirk & Huth to assist them, was fully disclosed to City Council. Mayor Taylor recused himself from the agenda item, and abstained from voting on Edelson’s contract out of an abundance of caution."

Members of Michael Taylor’s law firm, Kirk, Huth, Lange & Badalementi have donated at least $4,800 to his past campaigns. O’Reilly & Rancilio employees (Kaszubski’s firm) have also donated at least $3,475 to Taylor’s campaign in the past as well.

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Ethics questions raised about Sterling Heights mayor's role in guardianship case