2 arrested in Humboldt County on elder abuse charges

By Kevin Sheridan

OROVADA, Nev. (KOLO) - Two people are under arrest in Humboldt County on elder abuse, drug, and fraud charges.

On Oct. 3, detectives with the Humboldt County Sheriff’s Office received information that a 65-year-old man was possibly the victim of financial fraud. After an investigation was launched, it was determined an elderly man was being isolated from his family while being the victim of fraud, elder abuse, and theft.

Police identified two suspects, 56-year-old Dawson Barnes and 36-year-old Savannah Wilson of Orovada.

Around a week later, on Oct. 12, the Humboldt County Sheriff’s Office, along with Nevada State Police, located the elderly man at a residence on South Valley Road in Orovada. Police found the man living in unsanitary and unsafe conditions, in a state of malnourishment, and lacking medical care or personal hygiene.

Further investigation determined he was being isolated from his family for around six months after he was deprived of his cell phone, laptop, and other communication devices. He was taken to Humboldt General Hospital.

A search warrant was subsequently obtained for two separate residences in the Orovada area, which resulted in the seizure of a large amount of methamphetamine, cocaine, stolen property, stolen credit cards and checks, and personal identifying information of the victim, as well as a numerous guns, including a sawed-off shotgun. They allegedly possessed these firearms despite being considered prohibited persons.

Barnes was arrested and booked into the Humboldt County Detention Center on charges of abuse of an older or vulnerable person, being a convicted person who failed to register with local law enforcement, possession of a schedule 1 or 2 controlled substance with intent to sell, and eight counts of owning a firearm despite being a prohibited person, among other charges. His bail was set at $258,780.

Wilson was booked and charged with abuse of an older or vulnerable person, two counts of possession of schedule 1 or 2 controlled substances less than 14 grams, and using personal identity information of another to harm or for unlawful purpose, among other charges. Her bail was set at $58,140. 

Full Article & Source:
2 arrested in Humboldt County on elder abuse charges

Guardianship services firm faces embezzlement and fraud charges

ALBUQUERQUE, N.M. -- Federal law enforcement officials announced Wednesday that they have indicted one of the state's largest nonprofit guardianship firms with federal conspiracy, fraud, identity theft and money laundering offenses.

The charges, which are contained in a 28-count indictment, arise out of an alleged decade-long sophisticated scheme to embezzle funds from client trust accounts managed by Ayudando Guardians, a non-profit corporation that provides guardianship, conservatorship and financial management services to hundreds of individuals with special needs.

The 28-count indictment alleges that Ayudando Guardians co-founders Susan Harris and Sharon Moore embezzled millions from their special needs clients to support lavish lifestyles including cruises and car purchases.

Both Harris and Moore were taken into custody Wednesday. The Associated Press reports both women pleaded not guilty.

The indictment includes two conspiracy counts, 10 counts of mail fraud, nine counts of aggravated identity theft and six counts of money laundering.

"The victims in this case relied upon Ayudando to manage their finances and meet their needs. If the allegations in the indictment are true, the principals of Ayudando cruelly violated the trust of their clients and looted their benefits," said acting U.S. Attorney James D. Tierney in a statement released Wednesday. "Federal law enforcement has now stepped in to ensure that the looting stops. The U.S. Attorney’s Office and its partners will conduct this prosecution in a manner that provides for the continued receipt of benefits by Ayudando’s clients while holding the principals of the company accountable for their conduct."

According to the indictment, Harris and Moore perpetrated the embezzlement scheme by:

• Setting up client trust and company bank accounts which only they controlled;
• Transferring funds from client accounts to Ayudando company accounts;
• Using client funds to pay off more than $4 million in charges on a company credit card account used by Harris, Moore and their families for personal purposes;
• Writing checks from Ayudando company accounts to themselves, cash and to cover personal expenses;
• Replenishing depleted client accounts with funds taken from other clients;
• Mailing fraudulent statements and certifications to the VA; and
• Forging and submitting forged bank statements to the VA.

The indictment details some of the alleged activity, such as the writing of 12 checks for a total of $457,883 on the Ayudando client reimbursement account for personal purpose, including a $50,950 check made out to Mercedes Benz of Albuquerque and a $26,444 check made out to Myers RV Center.

Both co-founders could face decades behind bars.

Ayudando clients or family members of Ayudando clients who need to speak with someone about their accounts or expenses should call Ayudando, which is now being operated by the U.S. Marshals Service, at 505-332-4357.

Full Article & Source:
Guardianship services firm faces embezzlement and fraud charges

Fraud charges leveled against New Mexico guardianship firm

ALBUQUERQUE, N.M.- Federal prosecutors are accusing a New Mexico guardianship firm of embezzling millions of dollars from the trust accounts of their clients as part of a decade-long scheme to support what court documents describe as lavish lifestyles.

The 28-count indictment against Ayudando Guardians, Inc. and co-founders Susan Harris and Sharon Moore was unsealed Wednesday. It details charges of conspiracy, mail fraud, aggravated identity theft and money laundering.

Moore and Harris were arrested and made an initial court appearance Wednesday. They were scheduled to return to court Thursday to be arraigned.

It wasn't immediately clear if the women had attorneys. Messages left at the company's office were not immediately returned.

Ayudando — which means "helping" in Spanish — specializes in guardianship, conservatorship and financial management services for hundreds of individuals with special needs, including disabled veterans. The company receives benefit payments from the U.S. Department of Veterans Affairs and U.S. Social Security Administration on behalf of many clients.

"The victims in this case relied upon Ayudando to manage their finances and meet their needs," said Acting U.S. Attorney James Tierney. "If the allegations in the indictment are true, the principals of Ayudando cruelly violated the trust of their clients and looted their benefits."

With a court order, federal authorities have assumed control of Ayudando's business operations to ensure the clients' interests are protected as the case moves forward.

The case comes as a special commission created by the New Mexico Supreme Court studies the state's overall guardianship system with the aim recommending ways it can be improved.

The system was thrust into the spotlight following a series of investigative articles published by the Albuquerque Journal that raised questions about the lack of oversight and transparency.

According to the indictment made public Wednesday, Harris and Moore set up client trust and company bank accounts that only they controlled and transferred funds from client accounts to company accounts.

They are accused of using client funds to pay off more than $4 million in charges on a company credit card that was used by the two women and their families for personal purposes.

The indictment also accuses them of writing checks to themselves from company accounts, replenishing depleted client accounts with funds taken from other clients and mailing fraudulent statements to the VA.

Between June 2011 and March 2014, Harris is accused of writing 12 checks that totaled nearly a half-million dollars. One check in the amount of $50,950 was made out to Mercedes Benz of Albuquerque while another for $26,444 was issued to an RV dealership.

Other spending included more than $140,000 on vacations, from cruises in the Caribbean to a college basketball Final Four junket.

Full Article & Source:
Fraud charges leveled against New Mexico guardianship firm