Disability agencies push back against Department of Justice memo

By Ben Singson

Disability agencies are frightened and angered by a federal memo they say rolls back protections for disabled residents.

The Department of Justice issued a memo Thursday arguing states are not required to provide in-home or community care for their disabled residents. The memo, a legal opinion from the department's Office of Legal Counsel, goes back on what many legal scholars had considered settled.

In the memo, Principal Deputy Assistant Attorney General Lanora Pettit argued states are not subject to an "integration mandate" making them provide non-institutional care. Pettit's memo questioned the results of the 1999 Supreme Court case Olmstead v. L.C., which had been interpreted for years to mean states are required to provide programs that integrate people with disabilities into their communities.

Pettit argued the case "held only that a state cannot institutionalize such patients without justification."

"What counts as adequate justification remains an open question," she said.

West-central Illinois disability agencies see the memo as a frightening move on the part of the federal government.

Brooklyn Knapp, executive director of Jacksonville Area Center for Independent Living, said the memo was unsurprising but still "disheartening" to hear from the government.

The center at 15 Permac Road provides a variety of services for hundreds of clients, Knapp said, including Social Security benefit access, personal assistants, accommodations for students, and support groups, among other things. Losing those programs would be "devastating" for JACIL clients, many of whom no longer would be able to live in their own homes if the programs went away, she said.

"All of these disability services feel like they're at threat with what's going on, so it's scary," Knapp said.

Ryan Dowd, executive director of Pathway Services Unlimited, mirrored Knapp's sentiments, saying it is a "concerning" position for the federal government to take. The nonprofit at 1905 W. Morton Ave. provides services to about 120 clients, 65 of whom live in group home settings, Dowd said.

Pathway's group homes are aimed at providing clients an unrestrictive setting in which to live, Dowd said. State-run institutions would provide the exact opposite environment, putting them in "a community prison," and should only be used as a last resort, he said. Should disabled people begin to be returned to institutions, Pathway and similar organizations would have to close, he said.

"I read a comment that this memo, should it come to light, would set us back 50 years in terms of advances made for people with disabilities," Dowd said. "I tend to agree with that."

Pushback from other disability advocacy groups was swift and critical. American Association for People with Disabilities said Thursday that the department's interpretation of Olmstead is incorrect but still will be used "to hurt disabled people, lock us away, end our autonomy over our lives and, in many cases, end our lives altogether."

"The (Department of Justice) just gave the White House and other federal entities a green light to take disabled people back to a time when the state could, at any time, strip us of our homes, families, autonomy and our lives," the association said.

Gov. JB Pritzker's administration has taken steps to keep Illinois' disability programs up and running.

The day before the Department of Justice issued its memo, Pritzker signed into law the creation of the Illinois Department of Disability Advocacy and Guardianship. The department, which will begin operating on July 1, 2027, aims to protect the rights of the state's disabled residents by providing legal counsel and serving as a guardian of last resort, among other things.

"By establishing the Department of Disability Advocacy and Guardianship, we are making it crystal clear that disability rights are a priority in Illinois," Pritzker said. "I am proud to establish this agency, and I will continue to fight hard to empower people with disabilities and their families all across our state."

Neither Knapp nor Dowd are concerned about Illinois recalling its disability programs, they said. Both cited the Pritzker administration in their reasoning, with Dowd saying the current state government, the Jacksonville area and Illinois as a whole have been friendly toward disabled residents. There also are "checks and balances" in place to prevent those programs from going away, he said.

"I'm not terribly worried that this will come to fruition," Dowd said.

Knapp said she has faith in Pritzker's administration to maintain Illinois' current services for disabled people and she is more worried about such programs being rescinded at the federal level.

"We have a governor that believes in providing these services to his constituents," she said. "That's been my saving grace right now." 

Full Article & Source:
Disability agencies push back against Department of Justice memo 

DOJ outlines efforts to combat elder abuse, fraud in annual report to Congress

by Kimberly Bonvissuto 

With “millions” of older adults falling victim to elder abuse and fraud each year, the Department of Justice has released its sixth annual report about its efforts to tackle those crimes and prosecute offenders.

The DOJ’s “Annual Report to Congress on Department of Justice Activities to Combat Elder Fraud and Abuse” report to Congress outlines its efforts from July 1, 2023, to June 30, 2024, to combat elder abuse, neglect, financial exploitation and fraud.

During that period, the department pursued more than 300 enforcement actions against more than 700 defendants charged with stealing almost $700 million from 225,000 victims. The government provided services to more than 230,000 older adult victims and returned more than $31 million to them.

“Because millions of older Americans suffer some form of elder mistreatment each year — and because many more abuses go unreported or unseen — everyone has a role to play in this work,” Attorney General Merrick Garland wrote in a foreword to the report.

Working with partners including the US Postal Inspection Service, state partners and Medicaid Fraud Control Units, as well as law enforcement corpus, the department pursued more than 30 different types of elder fraud schemes. 

The scams with the highest financial losses for older adults — including senior living residents — were investment scams, where older adult lost $1.2 million. Tech support scams led to $590 million in losses, business email compromise scams led to $382 million in losses, romance scams cost victims $357 million and government impersonation cost victims $180 million. 

The department’s National Elder Fraud Hotline received more than 50,000 calls in the past year and helped older victims to report potential crimes and to local available resources and services. The five states with the highest number of calls were California, Florida, New York, Ohio and Texas. The most common types of fraud reported in those calls are romance scams, identity theft and business imposter scams. 

During a September hearing on fighting fraud held by the Senate Special Committee on Aging, US Sen. Bob Casey (D-PA), committee chairman, released the group’s ninth annual fraud book, “Fighting Fraud: Scams to Watch Out For.”

According to that report, FBI data showed that fraud losses among older adults reached $3.4 billion in 2023. According to the FBI’s Internet Crime Complaint Center, or IC3, investment scams were the costliest scams for older adults, with reported losses topping $1.2 billion last year, a 400% increase since 2021. 

The Federal Communications Commission reported that health-related scam calls targeting older adults tend to spike during Medicare’s open enrollment period, October to December. Last year, there were $17 million in confirmed losses due to healthcare scams. Mike Braun (R-IN), ranking member of the Senate Aging Committee, said that Medicare lost $60 billion in 2023 due to fraud, errors and abuse.

Full Article & Source:
DOJ outlines efforts to combat elder abuse, fraud in annual report to Congress

Former Nursing Home Employee, Jennifer Bryant, Sentenced to State Prison for Stealing from Elderly Resident

New Hampshire
Department of Justice
Office of the Attorney General

For Immediate Release
February 1, 2024

Concord, NH – Attorney General John M. Formella announces that Jennifer Bryant, 48, of East Rochester, pleaded guilty and was sentenced yesterday in the Strafford County Superior Court on one class A felony count of theft by unauthorized taking.

Investigation revealed that between May 7, 2019, and May 12, 2022, Ms. Bryant, while working as a nursing home billing coordinator, stole $71,548.00 in social security funds belonging to a nursing home resident. The funds should have been used to pay for the resident’s rent and care at the nursing home. Instead, Ms. Bryant used the funds to pay for personal retail purchases, salon services, restaurants, entertainment, home improvement, and vacations.

The Court sentenced Ms. Bryant to serve 5-10 years in the New Hampshire State Prison, stand committed. The Court suspended 3 years from the minimum term, with the suspended term to end 15 years following Ms. Bryant’s release from incarceration. Under the suspended sentence, Ms. Bryant is, among other things, prohibited from working in billing and accounting, and in the care of elderly, disabled, or impaired adults. Ms. Bryant must also pay $71,548.00 in restitution to the nursing home. Ms. Bryant was taken into custody at the conclusion of the sentencing hearing.

In exchange for Ms. Bryant’s plea of guilty on the theft indictment, an additional indictment of financial exploitation of an elderly adult will be nolle prossed.

This matter was jointly investigated by Investigator Frederick Lulka of the Consumer Protection and Antitrust Bureau and Investigator John Lannon of the Medicaid Fraud Control Unit. The matter was prosecuted by Senior Assistant Attorney General Bryan J. Townsend, II, of the Elder Abuse and Financial Exploitation Unit, and Assistant Attorney General Andrew Yourell of the Medicaid Fraud Control Unit.

If you or someone you know has been the victim of elder abuse or financial exploitation, please contact your local police department or the Department of Health and Human Services, Bureau of Elderly and Adult Services (1-800-949-0470).

Source:
Former Nursing Home Employee, Jennifer Bryant, Sentenced to State Prison for Stealing from Elderly Resident

Man Pleads Guilty to International Money Laundering Linked to Nigerian Romance Scams and Business Email Compromises

For Immediate Release

Office of Public Affairs

A Florida man pleaded guilty yesterday in the Southern District of Florida to money laundering for his role in funneling the proceeds of scams against American consumers and businesses to co-conspirators located in Nigeria.

Niselio Barros Garcia Jr., 50, of Kissimmee, was indicted by a grand jury on July 12, 2023. According to court documents, Garcia supplied bank accounts to his co-conspirators for the purpose of receiving proceeds from romance scams, business email compromises and other fraud schemes. After receiving the criminal proceeds, Garcia used a cryptocurrency exchange to conceal and transfer the funds in Bitcoin to co-conspirators in Nigeria. Garcia personally laundered over $2.3 million of criminal proceeds and earned hundreds of thousands of dollars in fees.

Business email compromises involve criminals hacking or spoofing business email accounts to initiate fraudulent money transfers. Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims.

“This prosecution demonstrates our ongoing commitment to protecting the public from complex financial crimes,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “This case serves as a reminder of the sophisticated methods employed by criminals and the need for vigilance in the digital age. The Justice Department remains committed to aggressively pursuing individuals and groups involved in these kinds of illicit activities.”

Garcia is scheduled to be sentenced in the Southern District of Florida on April 23. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Four additional defendants have been charged in this scheme but remain at large.

The FBI Buffalo Field Office investigated the case.

Trial Attorneys Lauren Elfner and Matthew Robinson of the Civil Division’s Consumer Protection Branch are prosecuting the case.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

Updated January 30, 2024

Source:
Man Pleads Guilty to International Money Laundering Linked to Nigerian Romance Scams and Business Email Compromises

Mistreatment and Abuse by Guardians and Other Fiduciaries

What is abuse by guardians?

While courts make efforts to ensure that guardians are trustworthy, some guardians have taken advantage of people in their care.  The mistreatment could be financial, physical, emotional/psychological or any other type of abuse of an older person or person with a disability.  Guardians also may neglect the people for whom they have a responsibility to provide care.  These perpetrators of abuse can be anyone serving as a guardian (family members, trusted others, non-profits, professional guardians, agencies).

There is currently limited information on the number of guardianship cases involving abuse. The US Senate Special Committee on Aging and the US Government Accountability Office have highlighted the problem and cited anecdotal information. The National Center for State Courts has found that most reports on the problem of exploitation by guardians lack empirical data.  Reports of fraud or other malfeasance by guardians have most often involved financial exploitation, but other types of mistreatment are also reported.  Abusive acts by guardians may meet the definitions for various state and federal crimes, depending on the facts of the case.  Guardians might be charged with such crimes as elder abuse, embezzlement, larceny, money laundering, theft, and neglect.

For an explanation of how guardianship can be a vehicle for abuse as well as a remedy, see the National Center on Elder Abuse issue brief, Guardianship: Remedy vs. Enabler of Elder Abuse.

To learn about how to spot mistreatment by a guardian and what to do about it, see the National Center on Elder Abuse flyer, What if Your Guardian is Not Doing What They Should?
 

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How can the courts with jurisdiction over guardianship cases respond to abuse?

A court with jurisdiction over a guardianship case might uncover evidence of abuse through monitoring, or a person or government agency might need to file a complaint or petition the court to respond to the mistreatment.  These courts can take the following types of actions:

• Freeze assets and/or restrict accounts – Courts may take these actions to limit a guardian’s access to money and property while investigating a case or preparing to take another protective step.
• Investigate allegations of malfeasance – Once allegations of abuse have been made, courts can appoint a guardian ad litem, investigator or visitor to investigate.  A court can also audit an individual’s assets or order an accounting by an external entity such as a certified public accountant.
• Order repayment for lost assets or property – Such orders might restore lost assets but, in many cases, the only way to recover funds is through a bond that the guardian obtained upon appointment. Sometimes courts do not require bonding when the guardian is appointed, making it more difficult to obtain repayment for losses at the hands of the guardian.
• Enforce statutory rights to communication and visitation – When abusive guardians use isolation tactics, family members and others may be able to seek orders enforcing state laws that define the rights of people subject to guardianship to interact with others of their choosing.
• Appoint a co-guardian or limit the powers of the guardian – This strategy may help deter or stop mistreatment by a guardian.
• Remove the guardian – Removal may be the best way to stop guardian malfeasance, and petitioners might suggest a willing and suitable replacement.
• Terminate the guardianship – Less restrictive options or changed circumstances might lead a court to terminate the guardianship entirely.
   

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Besides courts with guardianship jurisdiction, who can address abuse by guardians?

Numerous federal, state, and local government entities and non-profit agencies can respond and provide services when someone suspects that a guardian is mistreating an individual.  Although the court has the sole power to impose certain orders such as removing the guardian or surcharging bonds, other entities can get involved and assist victims.  These include:

• Adult protective services – Anyone suspecting mistreatment by a guardian should report to adult protective services.  Find your state or local adult protective services agency through the Eldercare Locator.  Most states have laws making certain categories of people mandatory reporters of elder or vulnerable adult abuse.
• Protection and advocacy systems – Protection and Advocacy Systems are federally-mandated state-based organizations that work to protect the rights of people with disabilities, including guarding against abuse. Find your protection and advocacy agency here.
• Long-term care ombudsmen – If the individual resides in a nursing home (or, in some states, receives home- and community-based services), the long-term care ombudsman can investigate and resolve complaints about abuse, neglect, and exploitation, including complaints about guardians. Anyone can file a complaint, but the resident (or an appropriate representative) must consent in order for the ombudsman to investigate and share information. Learn about the ombudsman program here and find your local ombudsman.
• Law enforcement – A guardian’s breach of duty may violate criminal laws and warrant investigation and prosecution.  In addition to reporting to Adult Protective Services, individuals suspecting guardian abuse should report it to law enforcement.  Contact your local law enforcement agency, your state attorney general, or call 911.  Some recent examples of guardianship fraud cases pursued by the United States Department of Justice include cases in Pennsylvania and Florida.
• Attorneys – Separate from the guardianship system, there are various civil actions that may apply to abuse by guardians.  Depending on state law, civil attorneys might bring cases alleging breach of fiduciary duty, breach of contract, fraud, undue influence or a private right of action for elder abuse.  Remedies might include restitution (repaying money lost), voiding documents including deeds, or other monetary awards of damages.
• Federal agencies – If the guardian also serves as a Social Security representative payee or VA fiduciary and is misusing public benefits, individuals may report to the Social Security Administration Office of the Inspector General or the VA Office of the Inspector General.
• Professional licensing boards – In some states, professional guardians may be certified, licensed or registered.  State boards can investigate and may revoke a license or certification.  If the guardian is a lawyer, the state has a committee that takes disciplinary action when a lawyer violates professional responsibilities.
   

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What is power of attorney abuse?

Powers of attorney give a trusted person (the agent) a great deal of authority and access to money and property, without regular oversight.  Power of attorney abuse can take many forms.  The agent might spend the individual’s money on items for his or her own use rather than for the individual’s needs. The agent might do things that the document doesn’t allow, such as making gifts when that power hasn’t been granted.  The power of attorney document itself might be forged or fraudulent in some other way.

State laws may help to prevent or limit power of attorney abuse.  For example, the Uniform Power of Attorney Act, adopted in over half the states, permits a third party such as a bank to refuse to honor a POA when the abuse is suspected and the third party reports it to an adult protective services agency. 
 

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What are the remedies to address power of attorney abuse after it occurs?

Lawyers may help people to stop power of attorney abuse and to get money back that has been improperly taken by the agent.  For example, a lawyer could:

• Draft a document to revoke (cancel) the POA
• Ask a court to require the agent to file an accounting to see how the agent has spent the money
• File a civil action to cancel contracts or deeds that the agent should not have made
• File a civil action to recoup money
• Petition a court to appoint a guardian who can manage the finances if the individual is unable to manage money independently

In addition, agents under a POA may be prosecuted for abusing a power of attorney.  Depending on state criminal law, power of attorney abuse might be theft, fraud, embezzlement, money laundering, exploitation or another financial crime.  Through the criminal court process, a prosecutor could ask the court to freeze the individual assets to prevent further abuse, and could also seek restitution (repayment of money taken).
 

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What do we know about abuse by government fiduciaries?

Reports from the Social Security Advisory Board, the Office of the Inspector General for the Social Security Administration, the Government Accountability Office, the National Academy of Sciences and other government and quasi-governmental entities over the past fifteen years have documented abuse by both individual and organizational representative payees. These incidents have prompted removal of payees from the program and, in some cases, criminal prosecution.  The Office of the Inspector General for the Department of Veterans Affairs also has investigated and substantiated allegations of abuse by VA fiduciaries.
 

Licensed material is being used for illustrative purposes only. Any person depicted in the licensed material is a model.

Source:
Mistreatment and Abuse by Guardians and Other Fiduciaries

New Jersey Man Pleads Guilty in Mass-Mailing Elder Fraud Scheme

Department of Justice
Office of Public Affairs

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FOR IMMEDIATE RELEASE

Friday, March 17, 2023

New Jersey Man Pleads Guilty in Mass-Mailing Elder Fraud Scheme

A New Jersey man pleaded guilty yesterday in the U.S. District Court for the Eastern District of New York to conspiracy to commit mail fraud, for operating a mass-mailing scheme that victimized older Americans.

According to court documents, Ryan Young, 40, of Upper Saddle River, New Jersey, operated a mail fraud scheme in which he mailed out letters falsely notifying recipients that they were entitled to receive unclaimed funds worth millions of dollars, a portion of a multi-million-dollar legal settlement, or a prize, in exchange for payment of a small fee of $30 to $40. The solicitation letters stated that they were sent by an organization tasked with providing notice and facilitating delivery of the funds or prize. Young did not deliver funds to any of the victims who sent payments in response to these letters. Instead, Young sent a booklet providing publicly available information regarding government Unclaimed Property Divisions in various states; a booklet providing publicly available information regarding a few class action settlements; or a flyer regarding online restaurant coupons. According to court documents, Young fraudulently obtained more than $1.6 million from victims of the scheme between March 2019 and May 2022.

The court documents further allege that Young operated this scheme while he was on pretrial release awaiting sentencing in a separate criminal case, in which he was charged with operating a similar fraud scheme. On Feb. 13, 2018, Young pleaded guilty to one count of conspiracy to commit mail fraud, for his role in a large-scale international mail fraud scheme that took $50 million from victims between 2011 and 2016. As part of that scheme, Young sent fraudulent prize notification letters to victims in the United States and numerous other countries. The letters falsely claimed recipients had won money or valuable prizes, such as luxury cars. Victims were instructed to send small processing fees – typically $20 or $25 – to claim the prizes. Many victims received nothing; others received only a cheap piece of jewelry or a report listing unrelated sweepstakes.

“The defendant in this case operated multiple fraud schemes, collectively depriving vulnerable Americans out of more than $50 million,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and its federal law enforcement partners are committed to investigating and prosecuting those who target vulnerable American consumers for financial gain.” 

“Mass marketing scams frequently target elderly or vulnerable citizens. Fraudsters may think they can anonymously siphon money from their victims but today’s guilty plea tells a different story,” said Inspector in Charge Chris Nielsen of United States Postal Inspection Service (USPIS)’s Philadelphia Division. “Through the efforts of Postal Inspectors in Newark, New Jersey, and Washington, D.C.; DOJ prosecutors; and the Fort Lee, New Jersey Police Department, we have successfully unraveled a complex mail fraud operation.”

Young will be sentenced on July 19 before U.S. District Judge Joan M. Azrack in Central Islip, New York. He faces a maximum sentence of 20 years’ imprisonment.

The USPIS investigated the case. Senior Trial Attorney Ann Entwistle and Assistant Director John W. Burke of the Consumer Protection Branch are prosecuting the case and Assistant U.S. Attorney Tanisha Payne for the Eastern District of New York is handling asset forfeiture. 

Additional information about the Consumer Protection Branch and its fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.

Source:
New Jersey Man Pleads Guilty in Mass-Mailing Elder Fraud Scheme

Justice Department Launches Disability Rights Investigation into Missouri’s Use of Skilled Nursing Facilities

Department of Justice

Office of Public Affairs

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FOR IMMEDIATE RELEASE

Wednesday, November 16, 2022

Justice Department Launches Disability Rights Investigation into Missouri’s Use of Skilled Nursing Facilities

The Justice Department announced today that it has opened an investigation under the Americans with Disabilities Act (ADA) into whether the State of Missouri unnecessarily institutionalizes adults with serious mental illness in skilled nursing facilities. The department will investigate whether these individuals could be served in the community with services such as supported housing, assertive community treatment, crisis services and peer support services, and whether the State’s use of guardianship for people with serious mental illness contributes to unnecessary placements in nursing facilities. Guardianship is a process in which a court appoints someone to make certain decisions for a person, often including decisions about where to live.

Prior to the announcement, the department informed state officials of the investigation.

“People with disabilities have too often been unlawfully isolated in institutions and stripped of their autonomy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to defend the rights of individuals with mental health disabilities to access the community-based services they need and to participate fully in community life.”

The Justice Department has not reached any conclusions regarding the subject matter under investigation. Individuals with relevant information are encouraged to contact the department via email at Community.Missouri@usdoj.gov or through the Civil Rights Division’s Civil Rights Portal, available at https://civilrights.justice.gov/.

Additional information about the Civil Rights Division’s Olmstead enforcement is available on its website at https://www.ada.gov/olmstead/.

Source:
Justice Department Launches Disability Rights Investigation into Missouri’s Use of Skilled Nursing Facilities

Associate Attorney General Vanita Gupta Delivers Remarks at Elder Justice Coordinating Council Meeting

Associate Attorney General Vanita Gupta Delivers Remarks at Elder Justice Coordinating Council Meeting

Washington, DC - Tuesday, November 15, 2022

 

Remarks as Prepared for Delivery

Thank you for that warm welcome, Acting Assistant Secretary Barkoff. It is a pleasure to join you once again and to represent the Department of Justice at the Elder Justice Coordinating Council, alongside Andy Mao, the Department’s National Elder Justice Coordinator.    

I would like to thank Deputy Secretary Palm for the leadership role that HHS has played on the Council and for partnering with Council participants to protect older Americans from abuse, neglect and financial exploitation. 

For the past decade, combating elder fraud and abuse has been a top priority for the Justice Department. We remain committed to doing all we can to restore dignity to older adults who have been abused, and to repair the sense of safety and security for those who have been financially exploited or defrauded. Prevention, early detection and early intervention — combined with partnership at every level of government — are all necessary to combat elder abuse.

Let me begin with some updates since I last spoke to this group.

As outlined in our recent annual report to Congress, the Department pursued nearly 300 criminal and civil cases in the past year on issues ranging from COVID-19 fraud to grossly substandard care in nursing homes. We also returned millions of dollars to elder-fraud victims through asset forfeitures and other actions. At the same time, we developed tools for elder justice professionals on the front lines and devoted substantial resources to victim assistance, including by responding to a record number of calls on the National Elder Fraud Hotline. And the Department participated in public outreach on numerous elder justice topics to over 150,000 individuals, including members of law enforcement, legal aid attorneys, elder justice professionals and members of the public.

Collaboration and coordination at all levels of government have been key to the success of these departmental initiatives.  

First and foremost, this is reflected in our close partnership with other federal agencies. As many of you know, the Justice Department has focused much of our elder justice enforcement on transnational schemes, which comprised nearly 40% of our cases in the past year. Our whole-of-government approach has been critical to detecting and disrupting these schemes, which include grandparent scams, romance fraud, identity theft and lottery fraud. Our work to investigate, build and prosecute these cases has involved collaboration with the U.S. Postal Inspection Services, the Department of Homeland Security, the Social Security Administration’s Office of Inspector General, as well as the Federal Trade Commission, the Consumer Financial Protection Bureau and Treasury’s Financial Crimes Enforcement Network.

Our federal partners have likewise been instrumental in helping raise awareness on issues impacting older adults. For example, with the help of the Administration for Community Living, the Consumer Financial Protection Bureau, the National Institute on Aging and others, we convened a three-day virtual symposium last April focused on the role that decision-making capacity plays in elder justice proceedings, where criminal and civil judges are frequently called upon to undertake the complex and nuanced task of trying to assess the abilities of older adults to make independent decisions about personal and financial matters. 

Equally critical for the department’s work has been our continued collaboration and coordination at the state and local level. Our federal initiatives have long benefitted from the assistance of our state and local law enforcement partners — and I am excited that the Council will be hearing today from some of our state partners who are so committed to this work. 

We also have several efforts in the works to strengthen these partnerships in the days ahead.  

One example of a successful collaboration is the National Nursing Home Initiative. Launched in 2020, this initiative is designed to coordinate and enhance civil and criminal enforcement related to nursing homes that provide grossly substandard care by drawing on a wide network of state and local professionals, including state Medicaid Fraud Control Units, adult protective services, Long-Term Care Ombudsmen, state and local law enforcement and many others. 

Next month, the initiative will launch a significant new training effort with state Medicaid Fraud Control Unit Directors across the nation. In a series of six virtual convenings, the Justice Department’s Elder Justice and Health Care Fraud Coordinators will meet with Medicaid Fraud Control Unit Directors to discuss the most effective ways to collaborate on priority substandard care cases and share best practices related to this enforcement work.

And just last month, the Justice Department’s Office for Victims of Crime announced the first of its kind effort to support a National Elder Justice Coalition Center to support the development of new state and tribal coalitions that will collaborate with federal agencies to coordinate elder justice work. The National Elder Justice Coalition Center will release a competitive solicitation early next summer to fund and support additional elder justice coalitions across the country.   

Finally, a bit of a coming attraction: I am pleased to announce that in the fall of 2023, the Justice Department will host an Elder Justice Summit specifically for state and local law enforcement. This Summit will provide a national platform for sharing strategies and best practices, information, and resources. Stay tuned for more information on this.

On behalf of the Justice Department, I want to thank you again for all that you have done and will do to advance the cause of elder justice. My colleagues and I look forward to continuing to partner with you on this important issue.   

Source:
Associate Attorney General Vanita Gupta Delivers Remarks at Elder Justice Coordinating Council Meeting

U.S. Attorney's Office For The Western District of North Carolina Takes Part In Department's Wide-Ranging Efforts To Protect Older Adults

Department of Justice

U.S. Attorney’s Office

Western District of North Carolina

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FOR IMMEDIATE RELEASE

Tuesday, October 4, 2022

 

U.S. Attorney's Office For The Western District of North Carolina Takes Part In Department's Wide-Ranging Efforts To Protect Older Adults

CHARLOTTE, N.C. – U.S. Attorney Dena J. King joins the Justice Department in announcing today the results of the Department’s efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.

“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”

“Financial predators view older adults as a target rich environment,” said U.S. Attorney King. “The increased presence of elderly individuals online offers ample opportunities for fraudsters to perpetrate financial scams on older victims and steal their hard-earned money. Investigating and prosecuting bad actors who engage in the financial exploitation of older Americans is a priority for my office. I also urge older adults, family members, and caretakers to be on the lookout for schemes targeting the elderly. Prevention and education is the best way to ensure older adults are protected from this appalling criminal activity. Reporting financial scams is equally important. If you are the victim of a scam or suspect an older individual is being financially victimized take action and report the fraud,” King added.  

During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. During that time frame, the U.S. Attorney’s Office in the Western District of North Carolina has taken federal action through the filing of criminal or civil cases involving financial schemes that targeted or largely affected seniors.

In August 2022, a Liberian national was sentenced to 10 years in prison for his role in an online romance scam that targeted older adults. In June 2022, a home health provider was ordered to serve 45 months in prison for stealing more than $1 million from two elderly clients. In March 2022, the U.S. Attorney’s Office announced the successful forfeiture and return of stolen cryptocurrency to an elderly individual victimized by a government imposter scam.  Additionally, in May 2022, the U.S. Attorney’s Office obtained a final forfeiture order for hundreds of thousands of dollars worth of cryptocurrency, which will be returned to an elderly victim of a romance/investment scheme. Furthermore, in December 2021, the Court ordered the forfeiture of a property purchased with the fraud proceeds perpetrated by the purported caregivers of an elderly victim. In addition to securing prison sentences for the perpetrators of the fraud, the Justice Department agreed to return the forfeited assets to the victim’s estate.

As part of its efforts to stem the tide of elder financial fraud, the U.S. Attorney’s Office continues to engage in outreach to the community to raise awareness about financial scams. Last week, U.S. Attorney King hosted a scam alert seminar at the Rutherford County Senior Center, during which participants were presented important information about financial fraud. Following the presentation, the participants engaged in a game of “Fraud Bingo,” a fun activity designed to deliver information and practical tips on how to prevent the financial exploitation and victimization of older adults by scammers.

The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams. 

The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.

In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.

Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.

Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source:
U.S. Attorney's Office For The Western District of North Carolina Takes Part In Department's Wide-Ranging Efforts To Protect Older Adults

 

U.S. Attorney Romero Announces a Dozen Social Security Fraud Cases Charged as Part of Targeted Effort to Crack Down on Benefit Theft

Department of Justice

U.S. Attorney’s Office

Eastern District of Pennsylvania

 

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FOR IMMEDIATE RELEASE

Monday, October 3, 2022

 

U.S. Attorney Romero Announces a Dozen Social Security Fraud Cases Charged as Part of Targeted Effort to Crack Down on Benefit Theft

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that so far this year, the Office of the U.S. Attorney for the Eastern District of Pennsylvania has charged no less than a dozen cases involving Social Security fraud, either by Information or Indictment, with nine of those defendants pleading guilty to those charges. The charges are the result of a concerted effort to investigate, prosecute and deter theft of government funds, primarily by way of stealing the Social Security payments of a deceased beneficiary. Altogether, the fraud loss amount in these cases totals nearly $1 million.

Defendants charged and their status are:

• Sloan Carter, 59, of Philadelphia, Pennsylvania; charged by Information on August 2, 2022, with theft of government funds; pleaded guilty on September 7, 2022;
• Marcus Ecks, 38, of Langhorne, Pennsylvania; charged by Information on June 28, 2022, with theft of government funds; pleaded guilty on September 8, 2022;
• Anthony Percell, 54, of Philadelphia, Pennsylvania; charged by Indictment on August 9, 2022, with social security fraud, passport fraud, identity theft, and related charges; scheduled for trial early next year;
• Angel Guilbe, Jr., 53, of Philadelphia, Pennsylvania; charged by Information on August 17, 2022, with theft of government funds; pleaded guilty on September 19, 2022;
• Stephanie Rudnick, 52, of Plymouth Meeting, Pennsylvania; charged by Information on May 19, 2022, with theft of government funds; pleaded guilty on June 7, 2022;
• Lilian Rogers, 58, of Glenolden, Pennsylvania; charged by Information on March 4, 2022, with theft of government funds; pleaded guilty on April 27, 2022;
• Dana Douglas-Rodriguez, 40, of Philadelphia, Pennsylvania; charged by Indictment on April 6, 2021, with wire fraud and social security fraud; pleaded guilty to social security fraud on May 3, 2022;
• Paulette Tamburro, 55, of Collingswood Heights, New Jersey; charged by Information on December 15, 2021, with theft of government funds; pleaded guilty on May 4, 2022;
• Michael Smith, 62, of Tobyhanna, Pennsylvania; charged by Information on September 2, 2022, with theft of government funds;
• Aracelis Quinones-Martinez, 52, of Lebanon, Pennsylvania; charged by Information on August 24, 2022, with theft of government funds;
• Ivan Wallace, 60, of Philadelphia, Pennsylvania; charged by Indictment on September 16, 2021, with wire fraud and social security fraud; pleaded guilty to social security fraud on September 28, 2022;
• Christopher Miller, 59, of Wernersville, Pennsylvania; charged by Information on September 20, 2022, with theft of government funds.

As an initiative to increase federal Social Security fraud prosecutions, the Social Security Administration (SSA) provides DOJ with attorneys who are sworn in and serve as Special Assistant United States Attorneys (SAUSA) in multiple U.S. Attorney’s Offices throughout the country. The SAUSA’s focus is solely to prosecute Social Security fraud. The goal of this initiative is to increase the number of prosecutions for fraud involving Social Security programs.  

“Social Security benefits are intended to help Americans who have worked hard and need some extra help making ends meet,” said U.S. Attorney Romero. “Thieves who take these funds fraudulently are taking advantage of American workers and taxpayers who fund these programs. Thanks to our partnership with SSA, our Office has dedicated prosecutors who are making a difference bringing these fraudsters to justice.”

“Our work to protect Social Security programs and taxpayers’ funds from criminals is one of our highest priorities. We will continue to pursue those who seek to defraud SSA, and we rely heavily on the SAUSAs to prosecute Social Security fraud, which is a federal crime,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the U.S. Attorney’s Office and SAUSAs Laura Bradbury and Megan Curran for their efforts in prosecuting these cases and holding these persons accountable for their criminal actions.”  

These cases were investigated by the Social Security Administration Office of Inspector General, and are being prosecuted by Special Assistant United States Attorneys Laura Bradbury and Megan Curran.

Source:
U.S. Attorney Romero Announces a Dozen Social Security Fraud Cases Charged as Part of Targeted Effort to Crack Down on Benefit Theft

Caretaker of Senior Couple Sentenced for Stealing Hundreds of Thousands from Elderly Couple’s Bank Accounts

Department of Justice

U.S. Attorney’s Office

Southern District of Florida

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FOR IMMEDIATE RELEASE

Friday, August 26, 2022

Caretaker of Senior Couple Sentenced for Stealing Hundreds of Thousands from Elderly Couple’s Bank Accounts

Miami, Florida – A U.S. federal district judge sentenced 52-year-old Sherri Lynn Smith to 51 months in prison, followed by four years of supervised release for stealing nearly $300,000 from two seniors by accessing their bank accounts while employed as their caretaker.   

From 2016 to 2019, Smith worked as a caretaker for an elderly couple in Broward County.  As part of her duties, Smith had access to the victims’ bank accounts to assist them with paying their monthly bills.  Smith used her access to the victims’ finances to embezzle approximately $300,000 out of the victims’ accounts without their knowledge or consent.  She accomplished this by writing and forging the victim’s signature on checks made payable to herself, her family members, and her creditors; initiating Zelle electronic money transfers from the victims’ accounts to her own bank account; and making electronic payments from the victims’ accounts to her and her husband’s numerous credit card accounts.

In addition to sentencing Smith to prison and supervised release terms, the judge entered a forfeiture money judgment in the amount of $288,865.92 and ordered Smith to pay $168,895.92 in restitution.  United District Judge Thomas P. Barber, of the Middle District of Florida, presided over this Southern District of Florida case.

Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami, made the announcement.  

FBI Miami investigated the case.  Assistant U.S. Attorney Diana M. Acosta prosecuted it.  Assistant U.S. Attorney Emily Stone is handling asset forfeiture. 

Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice.  The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).  

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14023.

Source:

Caretaker of Senior Couple Sentenced for Stealing Hundreds of Thousands from Elderly Couple’s Bank Accounts

Associate Attorney General Vanita Gupta Delivers Remarks at the Elder Justice Decision-Making Capacity Symposium

Associate Attorney General Vanita Gupta Delivers Remarks at the Elder Justice Decision-Making Capacity Symposium

Washington, DC

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Tuesday, April 19, 2022

Remarks as Prepared for Delivery

Thank you, Andy, for that warm welcome and for all of your work as the Department of Justice’s National Elder Justice Coordinator. I also want to thank the Elder Justice Initiative, the Justice Department’s Office of Legal Education, the Civil Division’s Office of Training and our many federal partners, especially the Department of Health and Human Services, who helped to plan this remarkable symposium.

I want to thank our participants and panelists, and I am delighted to welcome all of you to the department’s first-ever Elder Justice Decision-Making Capacity Symposium.

The Department of Justice is committed to using all of its tools to ensure that older Americans receive the support and protections they deserve. Every year, millions of older Americans are abused, neglected and financially exploited, often by those who are entrusted to care for them. The department has aggressively pursued justice for elders in a wide variety of fields – from nursing homes that provide grossly substandard care, to guardians and others who abuse their positions of trust and to multinational fraud schemes that target older adults. The department has also formed strong collaborative relationships with state and local law enforcement and provides trainings and webinars on elder abuse and financial exploitation to hundreds of civil attorneys, prosecutors, judges, investigators and other elder justice professionals in multiple disciplines, to ensure that they can appropriately respond to the specific needs of older adults.

This symposium addresses a foundational part of our work to protect our nation’s older adults: ensuring that they have access to justice and that they are treated with dignity and fairness. Advocates, prosecutors, law enforcement officers, judges, clinicians and others have repeatedly reported that too often, older adults are being denied a full measure of justice, in part because of mistaken assumptions or inadequate assessments of their capacity to make decisions for themselves.

These assessments can have deep and lasting impacts on the lives of older adults. In the criminal context, these assessments may be critical in ensuring that justice is obtained for older adult victims and, through restitution in certain cases, that they are made financially whole again. For example, an older adult may be a critical witness to a crime that will not be prosecuted if she is deemed incompetent to testify. Perpetrators who target older adult victims may seek to manipulate them, and a victim’s decision-making capacity may affect their interactions with their abusers. Assessing the victim’s decision-making capacity can help law enforcement tailor investigations to identify those cases that may, initially, appear to be cases involving a consenting adult, when in fact the victim did not – or could not – consent.

In civil cases, assessments about the need for a guardianship or conservatorship may govern an older adult’s ability to make core life decisions – where she can live, what medical decisions she can make, how she can spend her hard-earned money and with whom she can develop friendships and find companionship and love.   

Those of us who work in the legal system need to have a deeper understanding of how to address the specific needs of older adults and how to appropriately assess an individual’s decision-making capacity in a given case. As we work to combat elder fraud and abuse, we must equip ourselves with the knowledge and tools to ensure that we protect their rights and pursue justice when they have been victimized.   

That is why I am truly excited that you all have joined us for this symposium. Over the next three days, we will be engaging in a robust conversation about how we can best serve and protect older adults in this country. Participants span the spectrum of experts – including professors, clinicians, researchers, judges, prosecutors, law enforcement officers, aging services and social services professionals, administrative officials and many others. Although you come from many different fields, we are all here because we share a deep commitment to supporting and protecting older adults.

Your diversity of experiences is critical: it is through the cross-sectional expertise that you all bring that we will be able to have a fuller understanding of how to safeguard the rights of older adults. We need clinicians to help legal professionals, judges and adult protective services officials understand what capacity assessments can and cannot tell us about an older person’s abilities, and we must ensure that the tools used to assess decision-making capacity are valid and reliable.

Clinicians and elder justice professionals also need to share common understandings about their respective roles in the legal system, and I hope we can learn how to enhance communication between and among clinicians and elder justice professionals.

Finally, this symposium will explore how misconceptions about aging and decision-making capacity impact our civil and criminal legal systems. We need to confront and dispel negative stereotypes about the cognitive and decision-making capabilities of older adults. Even when a person has been diagnosed with a cognitive disability, we must understand how to reliably assess their actual decision-making capacity and how that capacity impacts the outcomes of a specific case or prosecution.

This symposium is just the beginning of the work we must do to ensure that all of us – judges, prosecutors, advocates, academics, researchers, guardians, adult protective services, aging services, social services professionals, elder justice professionals, doctors and clinicians, law enforcement officers and government officials – have a greater understanding of how aging and decision-making capacity impacts older adults so that the civil and criminal legal systems honor the rights of older adults, provide them with the greatest autonomy possible and protect those who have been abused, neglected or subjected to financial exploitation.

Thank you for sharing your vision, expertise and leadership as we forge forward together in pursuit of justice for our country’s older adults.

Full Article & Source:

Associate Attorney General Vanita Gupta Delivers Remarks at the Elder Justice Decision-Making Capacity Symposium

Nigerian National Extradited for Defrauding Elderly Victims and Money Laundering

 Department of Justice 

U.S. Attorney’s Office

Eastern District of Kentucky

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FOR IMMEDIATE RELEASE

Wednesday, April 27, 2022

 

Nigerian National Extradited for Defrauding Elderly Victims and Money Laundering

LEXINGTON, Ky. - A Nigerian national, Adedunmola Gbadegesin, has been extradited to the United States, on charges of conspiracy to commit wire fraud and conspiring to commit money laundering, stemming from the financial exploitation of elderly victims in the United States.           

According to a recently unsealed Court documents, a federal grand jury in Lexington returned an indictment charging Adedunmola Gbadegesin, 33, of Lagos, Nigeria, alongside two others, Olatunbosun Oluwakayode Ajayi, 34, of Atlanta Georgia, and Otunuya Ineh Eqwem Livingstone, 45, of Houston Texas, with conspiracy to commit money laundering.           

The indictment alleges that Gbadegesin and his co-conspirators collaborated to create fake online dating profiles, to post to online dating websites.  As part of the alleged conspiracy, the co-conspirators would engage in online chats, emails, and telephone calls with unwitting victims, who were located in the United States, including one in Lexington.  The indictment alleges that as part of the conspiracy, the co-conspirators would convince the victims to send money to the nonexistent romantic partners or give them access to their financial accounts, so the co-conspirators could initiate money transfers themselves.           

The indictment also alleges that Gbadegesin hired others in the U.S. to receive funds from victims and to launder those funds, so the funds could be returned back to Gbadegesin in Nigeria.  Those United States-based money launderers included Ineh Eqwem, Ajayi, and Ismaila Fafunmi.

Fafunmi pleaded guilty to his role in the money laundering scheme; and in August 2021, he received 51 months in prison.  Ineh Eqwem and Ajayi have also pleaded guilty for their roles in the money laundering scheme; they were sentenced to 24 months and 12 months, respectively.

Gbadgesin was arrested by Nigerian authorities on Sept. 22, 2021, in Lagos, Nigeria at the request of the United States. At the time of his arrest, Gbadgesein had been residing in Lagos, Nigeria.  Nigeria approved his extradition on March 21, 2021, and he was transferred into U.S. custody on April 26, 2022.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the indictment.

The investigation preceding the indictment was conducted by the FBI.  The indictment was presented to the grand jury by Assistant U.S. Attorney Kate Dieruf.  The U.S. Department of Justice’s Office of International Affairs, the Economic and Financial Crimes Commission of Nigeria, the Nigerian Attorney General’s Office, the Central Authority Unity, and the FBI Louisville Field Office assisted with the extradition of Gbadgesein.

Gbadegesin has his first appearance in Court on May 2, 2022 at 11:30 a.m. He faces up to 20 years in prison and a maximum fine of $500,000.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation.

The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation.  Anyone that knows someone, who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement.

            Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.                                                                                                  

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Source:

Nigerian National Extradited for Defrauding Elderly Victims and Money Laundering

Disgraced former attorney sentenced to nearly six years in prison for litigation advance fraud scheme

 Department of Justice 

U.S. Attorney’s Office

Northern District of Georgia

 

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FOR IMMEDIATE RELEASE

Tuesday, February 15, 2022

 

 

 

 

Disgraced former attorney sentenced to nearly six years in prison for litigation advance fraud scheme

ATLANTA - Chalmer “Chuck” Detling, II, a disbarred attorney, has been sentenced to prison after being convicted by a jury of wire fraud and aggravated identity theft. Without their knowledge or authorization, Detling used his clients’ identities—sometimes repeatedly—to obtain dozens of fraudulent litigation advances, totaling over $400,000.

“Detling betrayed the trust of his clients, business associates, friends, and family, all to steal money,” said U.S. Attorney Kurt R. Erskine. “This tough but fair sentence should remind those considering similar behavior about the consequences of those decisions, especially licensed professionals who are considering exploiting their clients in a time of need.”

“Detling violated the trust of the clients that hired him and used his position as an attorney not to pursue justice, but to pursue a fraud scheme for personal gain,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Because of his self-interest and greed he has not only thrown away his career, but will spend time in prison for his crimes.”  

According to U.S. Attorney Erskine, the charges and other information presented in court: Detling was the owner and operator of the Detling Law Group (which later changed its name to Detling Cole LLC), a personal injury law firm based in Marietta, Georgia. While running his law firm, Detling obtained fraudulent “litigation advances” in the names of his clients, without their knowledge or consent, from financing companies. These litigation advances—essentially high interest non-recourse loans—are intended for personal injury plaintiffs to cover non-litigation related expenses (e.g., living and medical expenses) while their cases are pending. In exchange for a litigation advance, the plaintiff agrees to repay the money received plus interest when his or her case settles or ends favorably at a trial. Because these are high interest advances, plaintiffs typically seek them out only as a matter of last resort.

From October 2014 to April 2016, Detling applied for and received dozens of fraudulent litigation advances, stealing hundreds of thousands of dollars. Detling submitted applications that were purportedly signed and executed by his respective clients, but Detling knew when he submitted the agreement paperwork that the clients had not actually executed the agreements.  He did so even after several clients expressly told him they did not need or want such financing. Detling was able to conceal from his clients that he had obtained the fraudulent advances by having the funds wired or deposited into his law firm’s Interest on Lawyer Trust Account (“IOLTA”) accounts.

Detling was able to secure these fraudulent litigation advances without his clients’ knowledge in part because the financing companies did not require the clients to be present when applying for the litigation advances or receiving the disbursements. He further concealed the fraud from the financing companies by exploiting the trust they placed in him as an attorney, by stringing them along with lies about the status of his clients’ cases and the possibility of future repayment. Detling also executed the scheme in part by submitting forged documents to the financing companies, including a doctored offer letter from an insurance company in which he claimed they offered $250,000 when in fact they offered $2,000 to settle a case.

While Detling was defrauding the financing entities, he was already subject of multiple investigations by the State Bar of Georgia (“Georgia Bar”) involving professional misconduct, including into his alleged mismanagement of client funds and settling of cases without client authority. Detling’s scheme ultimately unraveled when the Georgia Bar received an anonymous note in early May 2016 notifying it about a subset of the fraudulent litigation advances. Shortly after receiving this information, the Georgia Bar alerted the financing companies, Detling’s clients, and the FBI of the apparent fraud. Nonetheless, when subsequently deposed by the Georgia Bar, Detling repeatedly lied under oath about his knowledge and involvement with the fraudulently obtained litigation advances.

As a result of the Georgia Bar’s investigations, on September 1, 2016, the Georgia Supreme Court issued an emergency suspension of Detling’s law license. On October 30, 2016, the Court accepted Detling’s petition to voluntarily surrender his law license, characterizing it as “tantamount to disbarment.” Detling is no longer licensed to practice law in Georgia or elsewhere.

Chalmer “Chuck” Detling, II, 45, of Marietta, Georgia, was sentenced on February 10, 2022, by U.S. District Judge Leigh Martin May to five years and ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $254,837.89. He was originally charged by a federal grand jury in August 2018 with multiple counts of wire fraud and aggravated identity theft. Following an eight-day trial, a jury convicted Detling of four counts of wire fraud and five counts of aggravated identity theft on November 1, 2021.

This case was investigated by the Federal Bureau of Investigation with assistance from the State Bar of Georgia.

Assistant U.S. Attorneys Alex R. Sistla and Samir Kaushal prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Source:

Disgraced former attorney sentenced to nearly six years in prison for litigation advance fraud scheme