Caretaker of elderly lotto winner loses power of attorney

The unlicensed caregiver of elderly lotto millionaire Charles Hairston no longer has control over the 88-year-old Paso Robles resident's fortune or his medical care.

File Photo By Jayson Mellom

MONEY MATTERS A SLO County judge appointed a third party to manage the care and finances of lotto winner Charles Hairston, 88, of Paso Robles, stripping his former caregiver of her power of attorney over his lotto fortune. Hairston won $78 million at this convenience store in 2011. 

A SLO County Superior Court judge revoked Tiffany Borba's power of attorney as part of a contentious conservatorship case and appointed a third party to manage what's left of the $78 million lottery award Charles won in 2011, according to court records.

Charles asked Borba, whom he reportedly met while she was working at Scolari's Market in Paso Robles, to be his caregiver in 2012, and signed over power of attorney to her in 2015. He spent some of his winnings on gifts for Borba, including the purchase of a $819,000 home and a 2016 Porsche.

Charles' nephew Eddie Hairston initiated court proceedings to appoint a conservator for Charles in 2017, claiming that Borba failed to properly take care of him, isolated him from family and friends, and took advantage of him for financial gain. Court records show that Debora Trout, a licensed professional fiduciary, was appointed as the conservator of Charles' estate on Jan. 12.

As part of the case, Eddie raised concerns about Borba's handling of Charles' finances. Court documents reference large amounts of money being moved between three bank accounts set up outside of the trust created for the lotto winnings.

October 2017 bank statements filed as part of the court case show the transfer of $10,000 from one account in Charles' name to another. That second account, also in Charles' name, showed more than $8,721 in funds were withdrawn or debited in a 30-day period. A third account in both Charles' and Borba's name showed a balance of more than $92,000 between September and October 2017, with withdrawals totaling $3,510 for the same period.

Herbert Stroh, an attorney who represented Charles, also raised concerns about the accounts in a January court filing seeking to compel Borba to turn over accounting documents. Stroh's review of bank statements from some of the accounts showed "significant ATM cash withdrawals," according to the filing.

"There are significant outflows of large dollar amounts during 2017," he wrote.

Eddie's attorney, Brighton Hushing-Kline, said that the money in those accounts came from the lotto winnings trust, and questioned how much of the withdrawn money was used to pay for expenses related to Charles' care. He believes that Borba used it for her own day-to-day expenses.

"We've have long been suspicious of potential mismanagement," Hushing-Kline said. "She's not provided any explanation whatsoever."

In a written declaration submitted as part of the case, Borba denied allegations that she mistreated Charles. Meanwhile, she has enlisted the services of the Irvine-based law firm of Wallin and Klarich. Attorney Greg Balderrama confirmed that Borba was a client, but said it was not in relation to the conservatorship case.

"We are representing her in a very limited capacity," he said.

Balderrama declined to comment further on why he's representing Borba, but a March 26 letter to Eddie stated that Balderrama's firm was retained to represent Borba in a "pre-filing criminal investigation." According to the firm's website, a pre-filing investigation "generally involves a law enforcement agency analyzing and scrutinizing the facts of your case to determine whether the police agency can recommend that prosecutors file charges against you."

As of April 5, both the Paso Robles Police Department and the SLO County District Attorney's Office said they were not conducting any criminal investigations involving Borba.

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Caretaker of elderly lotto winner loses power of attorney

The scammers who bilked seniors out of more than half a billion dollars

There should be a special place in Hades for the criminals who commit financial fraud against seniors.

No one deserves to be a victim of a scam, but it’s particular heinous when perpetrated on people who are living on fixed incomes or surviving on savings they can’t replenish.

Many of the financial crimes against seniors go unreported because the victim are too embarrassed to tell anyone or report the fraud to the authorities.

So I was thrilled recently to see that federal and state law enforcement officials joined forces to round up more than 250 people accused of financial schemes that targeted seniors.

Some examples of the elder financial exploitation prosecuted by the department included:

— Lottery phone scams. Callers convince seniors that they have to pay a fee or taxes before receiving the lottery proceeds.

— Guardianship scams. Family, friend or recent acquaintances will siphon seniors’ money into their own bank accounts.

— IRS impostor scams. Con artists call and pretend to be an IRS agent claiming that victims owe back taxes.

— Grandparent scams. Seniors are tricked into believing that a grandchild has been arrested and needs bail money.

@BestBuy in Springdale, Ohio with my 87 y/o grandmother hoping to speak with the General Manager Kris Combs about why my Grandmother was able to come into his store and purchase two $2000 gift cards with the cashier not asking a single question as to why? #fraud #ElderAbuse 1/ pic.twitter.com/D2ksrttf7B

— Mike Naegel (@MikeNaegel) February 28, 2018

 — Romance scam. In this loathsome scheme, victims are persuaded to send money to someone they’ve met online.

More than two-thirds of caretakers reported that a scammer had targeted their elderly relatives, according to a survey of more than 1,700 people conducted by the Cooperative Credit Union Association, a New England-based trade group.

The survey found that, most often, the attempted fraud was initiated with a telephone call. Nearly 22 percent of scam attempts were made via email or another online contact.

“While regulators are working hard to address the scourge of financial fraud, education is key, particularly with hundreds of millions of Americans’ personal information readily available to criminals,” said Paul Gentile, president and chief executive of the association. “All financial consumers need to take steps to protect themselves financially and digitally, including by being aware of the latest trends in frauds and scams.”

A quarter of the caregivers surveyed said that they had not even discussed financial abuse with their elder relative or friend.

Want more information on how to stamp out elder financial abuse? Read the following.

— With every data breach comes an increased need for fraud sentinels for seniors.
Equifax breach may mean scammers can target more seniors

— From thestreet.com: How to Stop Fraudsters From Preying on Elderly Americans

“A 2017 AARP study states that over half of all U.S. financial fraud victims are over the age of 70, and that 90 percent of investment fraud victims were more than 50 years old. A separate study from the North American Securities Administrators Association notes that 97 percent of fraud prevention specialists say that “most cases” of senior financial fraud go undetected rather than being discovered before they cause serious problems.”

— From Consumer Reports: New Ways to Prevent Elder Financial Abuse

Report Fraud and Senior Scams with Help from ElderWatch – AARP

Law enforcement crackdown caught more than 200 scammers who cheated older Americans out of half a billion dollars. Report a scam and get help from @AARPFightsFraud at 877-908-3360. https://t.co/q033lwN4x2

— Nancy LeaMond (@NancyLeaMond) February 28, 2018

— From the Chicago Tribune: How to spot elder financial abuse

Please help detect and deter elder financial abuse.

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The scammers who bilked seniors out of more than half a billion dollars

Elderly Paso Robles lottery winner is the center of a legal battle concerning his welfare and fortune

Court case includes allegations of neglect and isolation from friends and family

–Charles Hairston bought a winning lottery at One Stop gas station at 703 Spring Street in Paso Robles in 2011 that was worth $78 million. According to reports and court records, Hairston was generous with his winnings including paying off his nephew, Eddie Hairston’s, mortgage and gifting his caretaker a $819,000 home and a Porsche. In a written declaration to San Luis Obispo Superior Court, Ronald Chaisson, an officer of Rabobank in charge of Hairston’s trust, Hairston “made regular gifts to as many as 15 people per year since 2011.”

Written statements from friends, family and a caretaker document allegations of neglect and isolation from friends and family, distrust and fractured relationships, which led to Eddie Hairston filing for a conservatorship for 88-year old Hairston, his medical care and finances. The court case was filed in November.

Eddie Hairston and friends of the elder Hairston are blaming an unlicensed caregiver, who has had power of attorney over the millionaire’s medical care and finances since 2015. The caretaker, Tiffany Borba and others, claim Eddie Hairston and friends were cut out of Hairston’s life for attempting to exploit his wealth.

Court reports say Hairston enlisted Borba as his caretaker in 2012. In written declarations to the court, friends of Hairston report incidents over the following years in which Hairston’s prescriptions were not filled, his home would be dirty, there would be no food in the house and calls to Borba from them would not be answered.

In a written declaration, a former neighbor, Melynda Weide, said in spring 2014, Weide and her husband heard Hairston calling for help from inside his home. The doors were locked, Weide said her husband broke a window to get to Hairston, who had been laying on the floor all night. Another friend, Janice Watson, reported similar situations during the same time period.

Legal records showed that Hairston gave Borba a $819,000 home in Paso Robles in March of 2015, also purchasing a new home for himself for $409,000. Watson’s husband, Lonnie, provided a written declaration that Hairston bought Borba a Porsche Cayman in 2016. Lonnie Watson’s declaration also included photos of several other vehicles outside Borba’s home.

In December 2015, documents showed that Hairston signed over power of attorney for both his finances and medical care to Borba. Up until that time, Eddie Hairston had the power of attorney. According to Borba’s written declaration, Hairston gave numerous cash gifts to Eddie and his wife that exceeded a half million dollars. The financial gifts included travel expenses to visit from Colorado. Borba’s declaration said the visits often ended in arguments and the final visit in November 2015 ending with “Eddie’s wife losing control, screaming at Charles.” Shortly after that incident Hairston changed his power of attorney from Eddie to Borba.

Attorney Paul Clark, who helped Hairston set up the trust for his lottery winnings, said, “Mr. Hairston expressed suspicion towards Eddie and his wife regarding their motivations.” Chaisson also claimed that a gate and security cameras installed at Hairston’s home were because of Hairston’s distrust of his nephew.

In her declaration, Borba stated that she’s arranged for his home care on a clinical level. That care plan includes care by licensed vocational nurses (LVN) and certified nursing assistants (CNA) who provide support and care 24 hours a day. “There is nothing Mr. Hairston lacks for in his care,” Rosalyn Myers, a private LVN who works with Hairston, said in her written declaration. Borba also denied allegations that she mistreated Hairston. William Dwyer, who claims to be a friend of Hairston since 1990 stated that he’s never been denied access to Hairston or seen Borba mistreat him. Kevin Wright, another of Hairston’s nephews, filed a written declaration in support of Borba, claiming that he’d never been prevented from visiting his uncle and accusing Eddie of going behind the Hairston family’s back by pursuing the conservatorship.

Eddie Hairston’s attorney, Glenn Lewis, argues in a court filing that the individuals supporting Borba’s claims either received gifts from Hairston or are working for Borba, who has the power over Hairston’s finances. Lewis wrote that “Charles Hairston is not speaking on his own behalf. His declaration is noticeably absent.”

In a recent conversation, Lewis told the Paso Robles Daily News that San Luis Obispo County Adult Protective Services had been involved in the case, but Lewis was not sure about the agencies current involvement. Lewis said a conservatorship is a “toss up, it depends on what the court-appointed attorney recommends.” The court-appointed attorney John Ronca to represent Hairston. Ronca has not yet returned a phone call from the Paso Robles Daily News. Lewis expects the case to continue for several months.

The 88-year old Hairston is bedridden but alert according to some reports. However, a report by Melanie Phillips, the court-appointed probate investigator states that Hairston believes it to be the year 1990 and was unable to hold a coherent conversation.

According to Eddie Hairston’s written declaration, he is Hairston’s biological son, claiming that Hairston told him this. Declarations from friends, as well as the woman who sold Hairston the winning ticket in 2011, stated that Hairston mentioned that Eddie was his son. In his declaration, Eddie said he attempted to have a private investigator test his DNA to confirm the paternity, but the investigator turned out to be a scam artist.

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Elderly Paso Robles lottery winner is the center of a legal battle concerning his welfare and fortune

Joe Roubicek: Joe's Cases: Rich Grandma, Poor Grandma

How badly would you like to win the lottery?

Gertrude Townsend, an 87-year-old woman from the “bad part of town,” went from rags to riches when she won 2.68 million dollars in the Florida Lottery. Her family held her hostage while stealing the spoils and attorneys battled for guardianship on her dime, to determine who would control the fortune.

Mark Twain said history does rhyme and nest eggs are still wiped out by pretentious “do-gooders.” Poor Grandma!

Lotto Grandma Lives In Poverty, Feels Heartbreak
August 15, 1998|By TESSIE BORDEN Staff Writer

FORT LAUDERDALE — Winning $2.68 million in the Florida Lottery did nothing to improve 87-year-old Gertrude Townsend’s life.

In fact, detectives say, the windfall brought her only unpaid bills, a bedridden existence and the heartbreak of a grandson who stole her money.

On Thursday morning, that grandson, Eric Jones, was arrested as he tried to cash a $650 check in Townsend’s name at the Nations Bank branch at 1300 Southeast 17th St. Police charged Jones, 25, with grand theft, passing a forged check and financial exploitation of the elderly.

“She’s technically a millionaire,” said Fort Lauderdale Detective Joe Roubicek. “But her phone is getting turned off. She’s living in squalor.”

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Joe Roubicek:  Joe's Cases:  Rich Grandma, Poor Grandma