Showing posts with label accused of embezzling. Show all posts
Showing posts with label accused of embezzling. Show all posts

Thursday, April 3, 2025

Mass. man accused of embezzling more than $300K from elderly family member

“This case illustrates one of the most common forms of elder abuse, the financial exploitation by a trusted family member.”


By Dialynn Dwyer

A Chelmsford man was arraigned Monday on charges he embezzled more than $300,000 from an elderly family member, authorities announced. 

Eric Borghetti, 51, pleaded not guilty to five counts of embezzlement by a fiduciary, the Middlesex County District Attorney’s office said in a statement. 

Prosecutors allege that in September 2019, Borghetti was living with the elderly woman at her Chelmsford home when a fire destroyed the house and injured the victim. Shortly afterward, she allegedly appointed Borghetti to serve as her fiduciary, acting in her best interests, with a Durable Power of Attorney. 

“The language of the DPOA did not authorize Mr. Borghetti to receive compensation or gifts in connection with his duties under the DPOA,” the DA’s office said. 

Shortly after the appointment, Borghetti allegedly added himself to the victim’s bank account. Prosecutors allege that after the woman’s insurance company deposited $175,750 to her account, Borghetti used transfers, deposits, and withdrawals to embezzle the woman’s money from four different accounts, including one single alleged withdrawal of $84,000. 

Borghetti is accused of embezzling $328,500 before his family member realized what he was allegedly doing and reported it, officials said. 

“This case illustrates one of the most common forms of elder abuse, the financial exploitation by a trusted family member,” Middlesex County District Attorney Marian Ryan said in a statement. “While these violations of trust may not initially be suspected among family members, this case shows the importance of acting quickly if you are concerned. Here, this defendant seized an opportunity following a large insurance settlement and was able to embezzle a huge amount of money in a matter of a few months.”

Following his arraignment, Borghetti was released on his own personal recognizance on the condition that he not travel outside New England, surrender existing passports, and not apply for any new passports. He will return to court on April 24. 

Attorney information for Borghetti was not immediately available.

Full Article & Source:
Mass. man accused of embezzling more than $300K from elderly family member

Tuesday, May 24, 2022

Conservator says she's targeted by AG task force

By Luca Powell

Jessica Englebrecht sits on the porch of her parents' home, where she and her children Parker, 7, and Sebastian, 5, had to move after Englebrecht, a conservator, was accused of embezzling money from 11 different vulnerable adults.
Record-Eagle/Jan-Michael Stump

LUDINGTON — In September, lawyers from the office of the attorney general of the state of Michigan will attempt to show a judge in Ludington that a conservator stole thousands of dollars from her wards.

The conservator in question is Jessica Englebrecht, a Mason County woman who was given 11 wards on court assignments. She served as their conservator and guardian, managing money and medical decisions for wards with schizophrenia, dementia, and developmental disabilities. A 1,330-page police investigation details how she moved money and property and provides the foundation for the state’s prosecution.

Conversely, Englebrecht has said that she overstretched herself trying to help wards who had nowhere else to turn. Englebrecht says that, if anything, she lost money caring for her clients, and that Attorney General Dana Nessel’s office is unfairly prosecuting her in search of a “win” in the AG’s campaign against elder abuse.

Shortly after taking office, Nessel announced the creation of an Elder Abuse Task Force. Separately, her financial crimes division has opened more than 185 cases into suspected financial exploitation since 2019. Englebrecht’s case is among a handful that have been drawn out into litigation.

Investigations began into Englebrecht’s conduct in 2019, when caretakers at Krystal Manor Adult Foster Care flagged concerns about the finances of one of their residents. A complaint was filed with Adult Protective Services, the state agency charged with caring for vulnerable adults, by the AFC’s owner Susan Myers.

A resident with developmental disabilities had become frustrated with how Englebrecht was managing his guardianship. The resident, whose name was redacted by records officers at the Michigan State Police, said Englebrecht regularly hid his receipts and bank statements.

In one instance, he said Englebrecht removed money from a Christmas savings account — a $50 nest-egg that was meant for him to buy gifts for his family.

“However, that money is no longer there and believed [sic] Jessica had taken it out without giving [REDACTED] an explanation,” the report states. An employee with APS further advised that there were “direct transfers from [REDACTED]’s bank account to Jessica’s bank account,” and that the transfers are “not normal practice for guardians.”

The investigation quickly expanded. Medicaid payments for some of the home’s residents were going unpaid. In addition, a resident’s car, a 2006 Kia Rio, had Englebrecht listed on the title, and a bag of $3,000 of her wards’ funds and personal information had gone missing in a motel room in Ann Arbor.

In interviews, Englebrecht’s wards complained to police that she rarely picked up her phone, explained her purchases, or helped her wards with paperwork they needed for things like job applications.

However, in Michigan, conservators and guardians aren’t legally required to do any of these tasks. Courts require one accounting of expenses annually and haven’t required probate courts to audit conservator’s receipts since 2001.

Englebrecht adamantly denies the perception of her being cast by the Michigan State Police report. In an interview with the Record-Eagle, she said she’d missed some filing deadlines with the court, but that she’d taken on so many wards after being begged to do so by Mason County Probate Registrar Linda Clifford.

Clifford referred all questions regarding the case to her court administrator, Charles Gunsell, who has not responded to a request for comment.

Englebrecht says proof of her innocence is in the numbers, which don’t add up: Most of her wards had little to no money in their names. Englebrecht said that her wards were so poor that she declined to charge an allowable $83 in monthly guardianship fees. Court records substantiate her claims.

More of than not, Englebrecht said she lost money caring for all 11 of her clients pro-bono.

“I’m the one that took them on and now I’m the one that is being accused of stealing from them,” Englebrecht said. “Nobody wanted to lift a finger for these people.”

She said the car was transferred to her name at her client’s request, that the bag of money genuinely did go missing, and that she was never offered training or guidance by the Mason County Probate Court on commingling funds and accounts, which she said is a common practice in Mason County.

“They dropped 12 people on her within a couple of weeks and gave her no training whatsoever,” said Suzanne Lange, Englebrecht’s mother. Lange runs an AFC home in Scottville, Country Care AFC. “The court needs to be held responsible for that.”

It’s not unusual for residents of AFC homes — many of whom are classified by the state as vulnerable adults — to have guardians. Lange said many guardians for her residents rarely interact with the adults they are charged with caring for. She said Englebrecht became a guardian because she wanted to do things differently.

Lange and Englebrecht both said that the wards the court assigned Englebrecht had long been neglected by the previous guardians. In one instance, Englebrecht said she was the first arrange care for a ward’s decaying eyesight, which she said her ward’s prior guardian had not thought to do.

  • “I was handed a shtshow,” Englebrecht said. “When I got her, I got her set up with one of the best eye doctors in the state. And I took her to those appointments myself.”

Lange has operated her AFC for more than 20 years. She described a lax oversight attitude at the court where elected officials have historically favored guardians that are ready and willing to take vulnerable adults off their court dockets.

“When I first got into it, there were other guardians that we’re doing things very illegal, and nobody wanted to question it because, when I took it to the judge, the judge says, ‘Well we don’t want to ruffle any feathers, because we like them, they take these clients on,’” Lange said.

Clifford declined to comment, citing the case as an ongoing trial. Probate registrars are often charged with picking and choosing guardians, although Michigan has no requirements for who can serve in the position beyond an 18-year-old age minimum.

Probate Judge Jeffrey C. Nellis also declined to comment on the case when Record-Eagle reporters went to Mason County to look through Englebrecht’s case files. Nellis swiftly removed Englebrecht from all her court assignments after hearing of the developing police investigation.

Meanwhile, Englebrecht’s case is headed to a jury trial in the fall. Her case is being tried by Dan Gunderson, a lawyer with the Attorney General’s Financial Crimes Division.

On the strength of the 1,330 page police report, Gunderson will seek to prove 10 misdemeanor charges of embezzlement as well as one charge for commingling funds with vulnerable adults.

The charges carry penalties of one to two years in prison.

For embezzlement, Englebrecht is liable to pay up to three times the amount in question, while the commingling charge carries a $25,000 penalty.

Lynsey Mukomel, a spokesperson for the Attorney General’s Office, said that Gunderson could not comment on an open case.

When Nessel first announced the charges, she said that cases like Englebrecht’s are “precisely why my office has a unit specifically charged with evaluating reports of elder abuse and why there are a number of assistant attorneys general and investigators assigned to pursue bad actors,” Nessel said in a press release.

Englebrecht maintains that Nessel’s lawyers are trying to prosecute a caricature of a bad guardian, without paying attention to the realities of her struggle to learn the job while working as a single mother.

“That movie, ‘I Care a Lot’ that’s what they try to depict me as. And it’s the furthest thing from the truth,” Englebrecht said, referencing a 2020 Netflix movie in which a crooked guardian drains the bank accounts of her elderly wards.

“They need someone to point the finger at,” Englebrecht said.

Lange said she was frustrated that the Attorney General had gotten involved, but that she looked forward to testifying to Jessica’s defense.

“People need to know that she was not out there just scamming these people — she was spending her own money, taking people out to doctor’s appointments, taking them shopping, doing things for them” said Lange. “It will come out in her trial.”

Full Article & Source:

Wednesday, April 13, 2022

Butte woman admits stealing more than $600,000 from victim under her guardianship

 

Department of Justice
U.S. Attorney’s Office
District of Montana
 

FOR IMMEDIATE RELEASE
Monday, April 11, 2022


Butte woman admits stealing more than $600,000 from victim under her guardianship

MISSOULA — A Butte woman accused of embezzling more than $600,000 from a woman who was under her guardianship and using the money to buy a house on Canyon Ferry, a vehicle and other items admitted to fraud charges today, U.S. Attorney Leif M. Johnson said.

Debra Gean Roeber, 66, pleaded guilty to wire fraud and to money laundering as charged in an information during an initial appearance hearing. Roeber faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud count.

U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Aug. 10 before U.S. District Judge Dana L. Christensen. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Roeber was released pending further proceedings.

The government alleged in court documents that Roeber was a guardian and had power of attorney for the victim, identified as Jane Doe, who was unable to care for herself or her financial needs without assistance because she was blind. Roeber served as a fiduciary for Jane Doe. From about January 2017 until June 2020, Roeber allegedly embezzled approximately $681,549 from Jane Doe. Bank records showed that Roeber used Jane Doe’s money to purchase a home and shop on Canyon Ferry, construction costs, vehicles, furniture and a pontoon boat, none of which was authorized. When interviewed by agents, Roeber admitted she took advantage of Jane Doe “a lot,” including lying to the victim about her finances, and that she stole from Jane Doe. Jane Doe is now deceased.

Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the FBI and IRS Criminal Investigation.

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Tuesday, October 22, 2019

3 court-appointed guardians embezzled more than $1M from 108 victims, Delco DA says

by Julie Shaw

JULIE SHAW / Staff
Three former court-appointed guardians are charged with embezzling more than $1 million from 108 victims in six Pennsylvania counties, using a shell company and a church to launder the stolen money, Delaware County authorities said Monday.

One of the former guardians, Gloria Byars, 58, of Aldan, the focus of a March 2018 Inquirer investigation, had been separately charged in April 2019 by the Philadelphia District Attorney’s Office with stealing money, family heirlooms, gold coins, and other valuables from four elderly Philadelphians.

Also charged by Delaware County authorities were Byars’ sister Carolyn Collins, 70, and Collins’ husband, Keith, 59, in their roles as guardians and managing partners at Pinnacle Guardian Services in Ridley Park. The couple, who live in Ridley Park, are founders and pastors at the Church of the Overcomer in Trainer. From 2011 to 2015, Carolyn Collins was a legislative assistant to State Rep. Margo Davidson (D., Delaware).
Keith Collins
JULIE SHAW
Keith Collins
Delaware County District Attorney Katayoun M. Copeland announced the charges at a news conference Monday morning in Media, flanked by members of her office’s Criminal Investigation Division, including its chief, Joseph Ryan. Copeland said unauthorized funds taken from elderly clients of all three ex-guardians were funneled through the church and a shell company set up by Byars called ICU Records & Billing (ICURB).

“These defendants were clearly living the high life,” Copeland said, noting that unauthorized money taken from client accounts was used to lease new cars and to buy vacation timeshares and Louis Vuitton merchandise, among other things. In a photo displayed at the news conference, Byars stood next to a white 2016 Lexus SUV, one of her former cars. Byars also spent some of the unauthorized money on a trip to Spain, Copeland said.

All three turned themselves in on Monday. At hearings in Havertown, District Judge Elisa Lacianca set bail for Byars at $500,000 and for the Collinses at $100,000 each. The three were held in the George W. Hill Correctional Facility in Thornton on Monday evening.

Byars is charged with theft offenses in connection with 90 victims, and with conspiracy. Carolyn and Keith Collins each is charged with theft offenses in connection with 18 victims. The District Attorney’s Office said the 108 victims were in Philadelphia, Montgomery, Bucks, Delaware, Lancaster, and Berks Counties.

Byars, her attorney, Sharon Alexander, and Carolyn Collins declined to comment to reporters. The Collinses did not yet have attorneys.

Keith Collins, interviewed while he sat in a car outside the District Attorney’s Office before being driven to the bail hearing, said he had not ripped off the elderly. “The body of my life’s work will speak for itself,” he said, adding that he’s been a minister for 40 years. “I worked with the poorest people in this county. I don’t have a salary. I don’t get paid.… There’s nothing extravagant about me.”

Copeland said investigators in her office were alerted to the alleged embezzlement scheme in February 2017 after learning that Pinnacle was the court-appointed guardian for a 94-year-old “incapacitated” person whose nursing-home bills weren’t being paid.

At an Orphans’ Court hearing that month, a judge ordered Pinnacle removed from all guardianship cases and required Pinnacle to provide accountings of how it spent money in all 25 cases for which it had served as guardian, Copeland said.

A financial analyst in her office then found that of the 25 cases, financial records for 18 showed “numerous improper cash withdrawals and checks,” Copeland said.

During their investigation into Pinnacle, investigators learned of Byars’ company, Global Guardian Services in Lansdowne, and that in 2012 she had set up a bank account under ICURB’s name “and used this account as a shell company to move stolen money from ward accounts to other shell business accounts,” Copeland said. The ICURB account also was used by the Collinses “to funnel money that was stolen from wards,” people deemed by a court to be incapacitated.

“Instead of simply doing their job, they cruelly embezzled over $1 million from over 100 incapacitated individuals,” Copeland said.

More than $28,000 in improper payments were made from ICURB to benefit the church, Copeland said. Byars and the Collinses also used two other shell companies, ACC Medical and CWR Medical, Copeland said.

Before opening Global Guardian Services, Byars worked for a well-known Philadelphia-area guardian, Robert Stump, at his RES Consulting in Havertown, starting as an office manager in 2008, Copeland said. Stump fired Byars in October 2016, and after reviewing his office accounts, on Dec. 20, 2017, reported to the Delaware County DA’s Office an alleged fraud by Byars involving one of his clients, the district attorney said.

In Philadelphia, the District Attorney’s Office announced in April that Byars was charged with stealing from four elderly victims. Copeland said that those cases would be withdrawn in Philadelphia and handled by her office, adding to the 108 victims.

In most of her Philadelphia cases, Byars was appointed as guardian after a recommendation by the Philadelphia Corp. for Aging.

Byars’ Philadelphia theft charges were related to the estates of Edmund and Margareta Berg of Fox Chase and two other alleged Philadelphia victims.

The Bergs’ niece, Heidi Austin, discovered through a Google search that Byars previously had been charged in Virginia with defrauding people. Court records show that in 2005, Byars was charged in that state with defrauding several people by using their discarded credit-card convenience checks, fished from post office trash cans. She pleaded guilty in October 2005 and was sentenced to 37 months in federal prison and ordered to pay $29,503 in restitution.

After Byars’ past criminal convictions were brought to Philadelphia Orphans’ Court’s attention, guardians in the city were required to affirm that they were not convicted of any crime involving fraud, deceit, or financial misconduct. Also, state criminal history reports became required. The requirements mirrored recommendations proposed by the Pennsylvania Supreme Court’s Orphans’ Court Procedural Rules Committee. Last year, the justices approved new statewide rules requiring criminal background checks, which took effect this June.

Full Article & Source:
3 court-appointed guardians embezzled more than $1M from 108 victims, Delco DA says

Wednesday, March 20, 2019

CEO of guardianship company indicted

Attorney General Hector Balderas
The CEO of Guardian Angels Representative Payee Services, a private company that managed the finances for special needs or infirm people, has been indicted on charges of embezzling tens of thousands of dollars from clients.

According to the indictment filed in 2nd Judicial District Court on Tuesday, between June and November of last year, 56-year-old Pamela Crumpler “did convert to her own use money belonging to her clients,” and it was “with intent at the time of conversion to fraudulently deprive the owner of his/her property.”

She then put the money back into her clients’ bank accounts to avoid getting caught, according to the indictment.

“No one should take advantage of vulnerable individuals in our community,” Attorney General Hector Balderas said in a news release. “We are prepared to present this case at trial.”

Crumpler is charged with embezzlement over $20,000 and tampering with evidence.

The Journal could not reach her for comment.

Representative payee and guardianship companies operate by taking control of their clients’ Social Security or other government benefits, annuity payments or settlement proceeds and paying their clients’ expenses for food, housing and other needs.

This is the third instance in the past two years where such a company has been charged with embezzling funds from clients.

The other two companies, Ayudando Guardians Inc. and Desert State Life Management, were accused of taking millions of dollars from clients and have since been shut down.

In fact, Balderas said, many of the clients Crumpler is accused of siphoning money from came to her from the now-defunct Ayudando Guardians.

Ayudando Guardians Inc., one of the state’s largest guardian and representative payee services firms, was shuttered in August 2017. Its chief financial officer, president, the president’s son and the president’s husband were federally charged in a $4 million embezzlement scheme that prosecutors say supported their lavish spending habits on luxury cruises and vacations.

The four are awaiting trial.

After Ayudando shut down, its estimated 1,400 clients were transferred to other guardians or firms – including the nonprofit Guardian Angels.

Balderas said Crumpler’s scheme began in 2018 when BBVA Compass Bank began running a promotion that would deposit $200 into new accounts that met certain requirements.

According to a letter Balderas sent to the bank, Crumpler took advantage of this promotion and shifted 247 of her clients’ accounts to the bank. Then, he said, she withdrew the bonus money and deposited it into her own account.

“In total, the CEO of GARP embezzled nearly $50,000 of funds designed to go specifically to the benefit of these vulnerable persons,” Balderas wrote in the letter.

Crumpler could face up to 12 years in prison if convicted.

The indictment comes less than three weeks after Paul Donisthorpe, the CEO of another nonprofit trust company, was sentenced to 12 years in federal prison for stealing $4.8 million from more than 70 clients.

Desert State Life Management is now closed, but it had acted as a conservator and fiduciary for developmentally or physically disabled and elderly individuals.

In early February, Balderas asked Gov. Michelle Lujan Grisham for assistance in combatting what he called a guardianship crisis in the state. He said the current lack of state regulation and oversight of the process has led to repeated exploitation of a vulnerable population.

A bill being considered by lawmakers would add additional safeguards to help prevent such vulnerable people from being exploited by their money managers and guardians.

Full Article & Source:
CEO of guardianship company indicted

Thursday, January 24, 2019

CEO of home health aide company is arrested for 'bilking Medicare for $11 million to pay for Bentley, Cape Cod vacation home and lavish trips with her NYPD cop husband'

  • Farrah Rubani, 51, was indicted on December 13 on Medicaid fraud charge
  • She is accused of embezzling $11 million in New York state Medicaid funds
  • Rubani is CEO of home health aide company Hopeton Care in Brooklyn
  • Prosecutors say she used money to fund lavish lifestyle with her husband
Farrah Rubani
The CEO of a New York home health aide company has been accused of embezzling $11 million from Medicaid to fund a lavish lifestyle with her NYPD cop husband.

Farrah Rubani, 51, was arrested on December 18 on a first-degree grand larceny charge in an alleged scam to submit false claims through her Brooklyn-based company Hopeton Care.

The New York Attorney General's office claimed in a civil suit that Rubani and her partners billed New York State Medicaid for home care for children when was none provided, then paid the kids' parents to stay quiet, the New York Daily News reported.

'Rubani misrepresented to parents… that the Medicaid program permitted Hopeton to pay them directly to care for their children instead of sending a nurse, notwithstanding the fact that these parents were not qualified to provide the nursing services that their children required,' the AG said in the lawsuit filed in Manhattan Supreme Court.

State investigators allege that Rubani, a native of Pakistan, stole nearly $4 million in that scheme alone. 

Rubani's husband is 50th Precinct NYPD Officer Richard Tricario.

Prosecutors allege that he spent some of the ill-gotten money on a $250,000 Bentley, a $60,000 Dodge Ram pickup and a $1.8 million Cape Cod vacation home that the couple nicknamed 'Rich At Heart'. 

Tricario has not been charged criminally. But the attorney general's office maintains that he wrote nearly $3 million in checks on the couple's joint bank account between 2016 and 2018.

Rubani's lawyer, Richard Harrow, said his client 'denies the allegations and looks forward to presenting evidence that will exonerate her.'

Meanwhile, Rubani's assets have been seized and the home health aides she employs have been faced with the tough decision between abandoning their patients and working without pay.

Among the patients in danger of losing their caregivers is Queens centenarian Rose Lawson, 102, the Daily News reports.

Lawson's only living family is niece Patricia Murphy, who lives in Texas and has been paying $180 a day out of pocket to contribute to her aunt's care.

On Friday, frustrated Hopeton Care employees gathered outside of the company's offices in Midwood to demand their paychecks. 

'They lying every Friday,' Yolene Jean-Charles told the Daily News.

The AG's office says it has twice released funds so the home health aides could be paid.

A spokeswoman for the office said that complaints should be handled through the Medicaid managed care organization.

Rubani is considered a flight risk and is being held on Rikers Island without bail. She is next due in court on March 1. 

Full Article & Source:
CEO of home health aide company is arrested for 'bilking Medicare for $11 million to pay for Bentley, Cape Cod vacation home and lavish trips with her NYPD cop husband'

Saturday, March 31, 2018

Harvard administrators accused of embezzling $110,000 meant for disabled students, buying gadgets and sex toys

Meg  DeMarco and a coworker are accused of stealing $110,000 from Harvard Law School.  
 (CBS News)
Two Harvard administrators are accused of embezzling $110,000 meant for disabled students and spending it on items including sex toys.

Meg DeMarco and Darris Saylors used to work at Harvard Law School, but resigned after a new budget manager discovered something wrong and started a police investigation, according to WBZ.

A criminal complaint seen by the station said that the pair each used tens of thousands of the stolen funds to buy iPads, IPods and laptops, with Saylors allegedly using a Dean of Students purchasing card for sex toys.

DeMarco, whose LinkedIn page says that she was in charge of managing the budget for the Dean of Students Office, is accused of using a mobile card reader to put money directly into her own personal bank account.

Saylors, who moved away from Boston, according to public records, did not immediately respond to a request for comment from the Daily News.

WBZ confronted DeMarco, now an administrator at Babson College, about the allegations.

“It was a big job and I made mistakes,” she said. “I never intended to harm the university. I’m very sorry and will do everything in my power to rectify the situation.”

Harvard University and the Harvard University Police did not immediately respond to questions about the alleged embezzlement.

DeMarco and Saylors are expected to be arraigned Wednesday. 

Full Article & Source:
Harvard administrators accused of embezzling $110,000 meant for disabled students, buying gadgets and sex toys