Scam Artists Heading To Prison For Bilking Elderly Californians

Three men who operated a multimillion dollar investment scheme and who bilked elderly Californians are headed to prison. The state attorney general's office announced Friday that James Litzinger, Gregory Chapman, and Wallace Thomas previously received sentences ranging from three to 30 years.  A fourth man, Rogel Patawaran, died before his sentence could be handed down.

Prosecutors say the men ran a company called Authotecq, and via that company sold more than $11 million in unregistered securities over nine year period. The men claimed to be developing an internet banking system but prosecutors say they just lined their own pockets, spending  millions on “fine dining, multiple cars, rent, and cigars."

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Scam Artists Heading To Prison For Bilking Elderly Californians

Congress passes legislation to protect veterans from financial scams

Rep. Matt Cartwright

WILKES-BARRE — The U.S. Senate last week passed by unanimous consent the Veterans Care Financial Protection Act — a bipartisan bill introduced by several legislators, including U.S. Rep. Matt Cartwright.

The legislation seeks to crack down on scam artists who are diverting federal funds from the Veterans Affairs (VA) Aid and Attendance program intended to support low-income and older veterans who require assisted care. The Aid and Attendance (A&A) benefit helps pay for assisted living or in-home personal care for veterans who qualify for a VA pension, and are housebound or require the aid and attendance of another person.

Cartwright, D-Moosic, said scam artists have targeted veterans, charging them fees for obtaining the benefit even though the application process is free. He said some scammers even take control of the veteran’s assets and move them into an irrevocable trust or an annuity, which the veteran often cannot access again for many years, and may disqualify the veteran from other assistance, like Medicaid.

“It’s our responsibility to protect our nation’s heroes and ensure they receive their earned benefits,” Cartwright said in a news release. “The A&A benefit is crucial for veterans who need help with in-home care or assisted living. Unfortunately, predatory scam artists exploit veterans by turning the well-deserved A&A benefit into a financial nightmare.”

Cartwright said he was “thrilled” the Senate passed the bipartisan, commonsense proposal to safeguard veterans from the scams.

The act would:

• Direct the VA Secretary to post an online warning to veterans on the VA’s website related to dishonest, predatory, or otherwise unlawful practices in the Aid and Attendance program.

• Direct the Government Accountability Office (GAO) to complete a study on the financial exploitation of veterans eligible for the Aid and Attendance program, including an analysis of the standards used by federal and state agencies to protect these and other vulnerable populations from financial exploitation, and any gaps in efforts to address these exploitation issues.

• Require the GAO to submit a preliminary report to Congress on the study of financial exploitation of veterans within 12 months, and submit the final report within 18 months.

The bill now heads to the president for his signature.

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Congress passes legislation to protect veterans from financial scams