Bilked by a grandson, man becomes face of new law

Scott Anderson

Dementia landed Perry Bitzel in the Gilman Healthcare Center more than a year ago. It also placed the 82-year-old under the legal guardianship of a family member who allegedly wiped out his bank accounts and sold two of his houses.

Perry was a victim of fraud, and charges have yet to be filed against one of his grandsons. He was one of many senior citizens throughout the United States who lose a combined $3 billion every year, according to past studies.

However, Monday marked a breakthrough. State Rep. Tom Bennett and Sen. Jason Barickman, whose district includes Livingston County, announced a bill, known as “Perry’s Law,” that would enable Perry and his family to move directly to civil court. It is awaiting Gov. Bruce Rauner’s signature.

Previously, families or guardians would have needed formal charges to be filed before they could pursue a civil case.

“It’s a sad reality that the most vulnerable in our community are often targeted for financial abuse and fraud,” Bennett said. “To add insult to injury, the high burden of proof in criminal cases often discourages prosecution and leaves victims and their loved ones without a good way to seek justice and to recover financially.”

That’s how “Perry’s Law” started. Perry’s other grandson and current guardian, Shawn Bitzel, learned of the scheme after it was too late. The accused grandson sold Perry’s home behind his back for a measly $5,000.

“I was devastated when all of this happened,” Shawn said. “With this new law, we were able to find a positive in the situation. It helped me get back on my feet, and hopefully it will prevent other situations like this from happening.”

Shawn eventually repurchased the house and discovered further indications of fraud. He obtained temporary guardianship of Perry in December 2014 and permanent guardianship this March. Yet, his family has not recovered the other finances that were lost.

Shawn met with a relative, Susan Wynn-Bence, Perry’s niece who works under Lt. Gov. Evelyn Sanguinetti. She arranged a meeting with Bennett and Barickman that eventually led to the creation of “Perry’s Law.”

Barickman explained that the law removes a loophole that did not protect people similar to Perry. He said he encourages those who do not agree with certain laws to contact state representatives and senators.

“It’s our job to figure out how to make sure those problems don’t exist in the future anymore,” Barickman said.

Bennett said he is confident Rauner will sign the bill, and allow elderly fraud victims to find justice.

"This change will help those victimized get the justice they deserve and their finances restored," Bennett said. "By making those responsible financially liable for more than the actual damages they cause, it also sends a strong message to those who would target the most vulnerable members of our community."

If Rauner signs the law, Shawn said he hopes legislators in Springfield will print several copies of it and display it at every nursing home throughout the state so that people are aware.

“A lot of elderly people in our society sometimes become the forgotten,” Shawn said. “They are the ones who put up with more than we have today. They went through the Great Depression, the wars, the economy. I think it’s great that we are protecting them now.”

Shawn said his family intends to pursue a civil suit against the ne'er-do-well relative, who has been held at the Iroquois County Jail since late May on felony charges unrelated to Perry’s case.

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Bilked by a grandson, man becomes face of new law

Valparaiso attorney charged with stealing $1.6M resigns

A Valparaiso attorney charged with five counts of theft for allegedly stealing more than $1.6 million from business clients he represented has resigned from the Indiana bar.

Clark W. Holesinger, 52, tendered his resignation which was accepted last week by order of the Indiana Supreme Court. But the justices aren’t finished dealing with the Holesinger matter just yet.

The order dated March 12 does not specify the nature of the disciplinary proceeding against Holesinger. It notes, though, that his resignation affidavit “requires an acknowledgement that there is presently pending an investigation into or a proceeding involving allegations of misconduct and that (Holesinger) could not successfully defend himself if prosecuted” by the court’s Disciplinary Commission.

The commission filed no verified complaint against Holesinger – the public disclosure of disciplinary action – and the court order accepting his resignation is the only public information available about his disciplinary case, according to Supreme Court outreach coordinator Sarah Kidwell.

Under Indiana Admission and Discipline Rule 23(17), Holesinger’s resignation affidavit “shall not be publicly disclosed or made available for use in any other proceeding except upon order of this court.”

Holesinger was charged in February with four counts of Class C felony theft of more than $100,000, and the charges last week were amended to include a fifth count of Class D felony theft.

The charges are an outgrowth of a civil suit filed against Holesinger in Porter Superior Court on behalf of four Valparaiso businesses. Holesinger is accused of stealing more than $1.6 million over the past three years from companies owned by Chris Andrews. Holesinger had been Andrews’ family attorney since the mid-90s, according to the lawsuit.

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Valparaiso attorney charged with stealing $1.6M resigns

Minnesota AG, Lori Swanson, Sues Estate Planning Service, Alleging Fraud

Minnesota Attorney General Lori Swanson said she is suing Heritage Partners, a Minnesota company she claims lured senior citizens with free steak dinners at popular restaurants and then fed them scary estate-management and insurance sales pitches.

The civil suit was filed Monday in Hennepin County District Court, alleging consumer fraud and deceptive trade practices. Calling Heritage a "living-trust mill," Swanson said it promised clients their legal documents would be prepared by an experienced estate-planning attorney.

But the clients ended up with boilerplate documents assembled by Dennis Lawrence, an Arizona man who's not licensed as a lawyer in Minnesota or Arizona. According to state law, only members of the Minnesota bar are permitted to prepare wills and trusts.

The trusts were full of problems and didn't suit individuals' situations, Swanson said. She said about 500 Minnesota households paid Heritage about $2,300 apiece -- or more than $1 million.

"They paid for a complicated trust, with an attorney, and that is not what they got," Swanson said. "(Heritage Partners') real goal is to get their foot in the door ... and then sell insurance products."

Gary and Penny Pietila of White Bear Lake responded to a Heritage flier and went to a local steakhouse for a free dinner and to find out about ways to pass on their assets after death. The speaker was Heritage's president and founder, insurance agent Anthony Friendshuh. What he had to say frightened Penny Pietila and, she said, "I fell for it, hook, line and sinker."

The couple ended up paying more than $2,000 for the trust document, but the health care and financial responsibilities they had laid out for their two daughters got fouled up, with all the weight put on one daughter's shoulders. They had a terrible time getting it straightened out, they said.

At the behest of the Heritage insurance agent, during 2012 and 2013, they also had moved much of their nest egg into annuities and were unhappy when the annual fee proved more costly than the interest the annuities earned.

"We were actually going south," Gary Pietila said.

During the dinners, Heritage Partners discussed estate planning, probate and trusts with senior citizens, Swanson said. Insurance agents set up appointments with attendees to try to convince them to buy legal services and investments.

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Minnesota AG Sues Estate Planning Service, Alleging Fraud