Sunday, March 19, 2023

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

Department of Justice
Office of Public Affairs

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

Laughing employee at assisted living facility whipped resident with lanyard and took him to ground with co-worker: Deputies

by Alberto Luperon

Rosa Edwards, left, and Aneisha Xitvaia Hall were charged with battering two residents at an assisted living facility. (Mugshots: Pinellas County Sheriff’s Office)

Two employees of an assisted living facility were charged with battering two residents, authorities said.

One of them, Rosa Edwards, 23, whipped a male victim with a lanyard while laughing before she and co-defendant Aneisha Xitavia Hall, 19, grabbed him and took him to the ground, according to the Pinellas County Sheriff’s Office in Florida.

Both women are charged with two counts of battery on a person 65 or older. Authorities said the second victim was a female resident of the facility.

Deputies said in a statement that they started investigating Tuesday after getting a report of two employees battering at Inspired Living at Ivy Ridge Assisted Living Facility at 7179 40th Avenue North in unincorporated St. Petersburg. The facility’s executive director reported the Sunday incident after seeing it on surveillance footage, authorities said.

“Deputies say the incident was initially reported by staff as a resident-on-resident battery, however, the director became suspicious of the claims,” the sheriff’s office said. “Throughout the course of the investigation, it was discovered that two employees, 23-year-old Rosa Edwards and 19-year-old Aneisha Hall, initiated an altercation with an elderly male resident. The resident was pushing an elderly female resident down the hall in her wheelchair. Deputies say Edwards began to whip the male resident with a lanyard while laughing when a physical altercation ensued. Edwards and Hall proceeded to grab the male resident and take him to the ground as he continued to hold on to the wheelchair, causing it to fall sideways with the female resident in it. Both Edwards and Hall then ran away from the area of the incident and out of view of the camera, leaving both elderly residents laying on the ground.”

The victims did not suffer injuries, deputies said.

Edwards and Hall told a co-worker that the man battered the woman and that they were not involved, deputies said.

But when investigators talked to Edwards, “she admitted to using excessive force when dealing with the incident and stated that they should have handled it differently,” according to the statement.

Pinellas County court records show Edwards was charged in 2021 with a count of battery on a person 65 years or older. She got into an argument with the victim and struck him in the head, causing his hat to fall to the ground, documents said.

“Post-Miranda, the defendant admitted to hitting the victim in the head using her right hand,” authorities wrote.

The disposition of the 2021 case is unclear from available online court records.



Full Article & Source:
Laughing employee at assisted living facility whipped resident with lanyard and took him to ground with co-worker: Deputies

Saturday, March 18, 2023

'Henry's law' seeks to allow cameras in nursing home patient rooms


By:
Darcy Spears

LAS VEGAS (KTNV) — Care and comfort are the basic expectations families have when taking a loved one to a nursing home. But sometimes, that's not what you get.

We first shared the story of Henry Owens in August, 2020. Henry passed away six months after our story aired.

His sister, Theresa, has never stopped fighting to ensure he did not die in vain.

Our story about Henry's plight, and Theresa's relentless pursuit of justice, got the attention of Nevada Assemblywoman Shondra Summers-Armstrong, who proposed a new law to keep an eye on one of our state's most vulnerable populations.

"Everybody that sees the pictures... They're mortified," Theresa Owens-Bigay told 13 Investigates in 2020.

What can happen in nursing homes can be horrific as elderly people entirely dependent on the care of others are sometimes neglected, abused and suffering.

"It was horrible," Theresa said about her brother's care. "Nobody should have to live in those conditions, whatsoever. Nobody!"

Theresa's lawsuit, which is still ongoing, accuses Life Care on Harmon and Eastern avenues of multiple failures in care, like placing Henry's water out of reach, not helping him eat or drink, leaving his food and juice out for several days to spoil, and not changing his soiled diapers.

Medical records referenced in the lawsuit show Henry suffered numerous urinary tract infections due to being left for hours in soaking diapers and sheets.

He was sent to the hospital for treatment of those infections multiple times, as well as for severe dehydration, MRSA and sepsis.

When Theresa went to visit him on March 28, 2019, she recalls:

"It was lunchtime and I came into the dining room, and low and behold he's laying on the ground. And I got the camera out and I started filming. 'You don't need to film this,' the administrator said. And I said, 'Yes I do, honey.'

When COVID hit and Las Vegas went on lockdown, Theresa and her camera were kept out. No family or friends were allowed to visit loved ones in any Nevada nursing homes at the time.

That gave Theresa the idea to propose "Henry's Law," which will ensure there are eyes and ears in a patient's room so family can always keep tabs on their care.

DARCY SPEARS: "You saw the care that he was getting when you could visit him."

THERESA OWENS-BIGAY: "And that was bad."

SPEARS: "And then when you couldn't?"

OWENS-BIGAY: "I was scared. I was distraught."

Assembly Bill 202 would authorize nursing home patients or their representatives to have cameras equipped with video and sound installed in their rooms. Facilities will be required to approve the request and are prohibited from denying admission or discharging a patient over a recording device.

In addition, nursing home employees would not be allowed to refuse to enter the rooms or refuse to care for those patients with cameras.

The patient or their representative would be responsible for choosing and paying for the device, installing, maintaining and removing it.

A.B. 202 will be heard on Monday, March 13 by the Health and Human Services Committee, and lawmakers want your opinion or testimony.

Assembly Agenda for March 13th, 2023 by alyssa roberts on Scribd


You may attend the hearing at the Grant Sawyer building at 1:30 p.m. in room 4401.

The address for the Grant Sawyer building is 555 East Washington Avenue, Las Vegas, NV 89101.

You may call in and testify if you cannot make it in person. The number is 888-475-4499, and the meeting ID number is 84050949170.

You may also submit a public opinion on the Nevada Legislature website by following these step-by-step instructions:

  1. Once on the website, go to the top right of the page on the blue bar and click "Scheduled Meetings"
  2. Scroll to the bottom of the page and click "Upcoming Events"
  3. Then scroll down to Monday, March 13, 2023
  4. Scroll down to time 1:30 pm. There are two 1:30 pm time slots. Click the one that reads "Assembly Committee on Health and Human Services"
  5. Then click on "A.B. 202"
  6. Scroll down to the bottom of the page and see "Public Opinions." That is where you can submit your opinion.

Full Article & Source:
'Henry's law' seeks to allow cameras in nursing home patient rooms

Bill targeting financial exploitation of seniors wins final passage

By Dave Williams

Chuck Hufstetler
ATLANTA — The state House of Representatives gave final passage Wednesday to legislation aimed at preventing the financial exploitation of Georgia seniors.

The bill, which the Georgia Senate passed last month, authorizes financial advisors to delay transactions involving their elderly or disabled clients if they suspect fraud.

“Georgia has a strong tradition of protecting elders from abuse,” Rep. Carter Barrett, R-Cumming, who carried Senate Bill 84 in the House, told his legislative colleagues during a short discussion before Wednesday’s unanimous vote.

Georgia Secretary of State Brad Raffensperger backed the legislation, noting during a news conference in January that financial exploitation of seniors has been on the rise since the pandemic struck three years ago.

The Securities Division in the secretary of state’s office processes complaints of financial exploitation.

Senate Finance Committee Chairman Chuck Hufstetler, R-Rome, steered the bill through the Senate, where it also passed unanimously.

The legislation now heads to Gov. Brian Kemp for signing.

Full Article & Source:
Bill targeting financial exploitation of seniors wins final passage

Man who posed as licensed contractor arrested, charged with financial exploitation of elderly: Baldwin Co. Sheriff

by: Brett Greenberg


BALDWIN COUNTY, Ala. (WKRG) — A man was arrested Wednesday after he allegedly posed as a licensed contractor in October 2022 and stole around $80,000 from a 61-year-old woman, according to a release from the Baldwin County Sheriff’s Office.

Joseph McTigrit was placed in the Baldwin County Corrections Center and charged with Financial Exploitation of the Elderly. Deputies said he is “believed to have multiple victims for the same types of crimes and fraudulent business practices.”

The arrest warrant came from an incident in October 2022 when McTigrit posed as a licensed contractor and was hired by a 61-year-old woman for some home renovations.

Deputies said he was not licensed and could not “legally obtain the proper permits to perform the construction work on the home.”

The woman gave McTigrit over $100,000 to buy supplies and perform the work. According to the release, no supplies were bought and “the work that was started caused further damage to the residence.”

The woman was able to reach him over the phone and he gave her back roughly $20,000 “of the initial money provided” before “cutting off all communication with the victim.”

Full Article & Source:
Man who posed as licensed contractor arrested, charged with financial exploitation of elderly: Baldwin Co. Sheriff

Friday, March 17, 2023

Miami-Dade County Mayor Daniella Levine Cava wants funding halted for Guardianship Program

By Joshua Ceballos

Miami-Dade County Mayor Daniella Levine Cava, pictured here at a press conference on Dec. 21, 2022, has called on the county to halt grant funding for the Guardianship Program of Dade County pending an independent investigation

Miami-Dade County Mayor Daniella Levine Cava on Wednesday directed the county administration to temporarily cease grant payments to the Guardianship Program of Dade County and asked for an independent investigation of the agency’s sales of properties of its clients.

Cava’s action comes a day after a WLRN investigation found that the Guardianship Program sold properties of people under its care to the same realty company since 2011. That company, Express Homes, then either quickly sold the homes for profit, renovated the homes to sell later, or kept the buildings as rental property. Gains collected from the subsequent sales did not go towards the care of the non-profit agency’s “incapacitated” clients.

The Guardianship Program, which is partially funded by county taxpayers, takes responsibility for people who are declared "incapacitated" by the court system. In some cases, the program sells the individual’s property so that the proceeds may go toward their care.

"To ensure we are doing everything possible to protect our families from harm and exploitation, I have formally requested that the Office of the Inspector General launch an investigation into these sales," Cava wrote in a memo to the Office of Management and Budget on Wednesday. "While the results of that investigation are pending, I am directing the Office of Management and Budget to pause the execution of any and all pending grant payments from Miami-Dade County to the Guardianship Program until further notice."

Guardianship Program of Dade County Executive Director Carlos McDonald told WLRN that the nonprofit agency works with multiple realty companies to sell their wards’ properties, and does so with approval from the court.

Other top Miami-Dade officials have also called for a probe of the Guardianship Program’s real estate transactions.

Miami-Dade Commissioner Eileen Higgins specifically wants county investigators to probe the agency's practices and procedures relating to the sale of real property, look into its role in property transactions related to its wards, and to create a listing of all real property transactions where it was involved in the transfer or sale of its client’s or ward’s property.

Miami-Dade Commissioner Raquel Regalado told WLRN on Wednesday that she, too, reached out to the OIG regarding the Guardianship Program after a lawsuit was filed last week against Express Homes.

The lawsuit by a former Miami−Dade County resident alleges that Miami City Attorney Victoria Méndez, her husband Carlos Morales — who owns Express Homes — used their ties to the city to make a hefty profit on a home they bought from him at "below market value."

Morales and Méndez dismissed the lawsuit allegations as false. Méndez also denied any involvement in her husband’s business in an emailed statement to WLRN. Morales, through his attorney, said that all work he does with the Guardianship Program is “above board” and within the law.

Regalado said the OIG informed her it had been investigating the Guardianship Program for several months.

OIG Deputy General Counsel Marie Perikles confirmed to WLRN that the office was “reviewing the matter” of the Guardianship Program but did not comment further.

Regalado, who is an attorney and is in the process of establishing guardianship for her adult daughter who has autism, said changes in how the county deals with guardianships are long overdue. She said better safeguards need to be in place to avoid financial abuses and to protect incapacitated people and their families.

“Clearly, we need reform,” Regalado said.

Regalado said the Florida Department of Elder Affairs is also looking into the Guardianship Program, which also gets funding from the state agency. Department officials did not respond to WLRN’s request for comment on Wednesday.

Full Article & Source:
Miami-Dade County Mayor Daniella Levine Cava wants funding halted for Guardianship Program

Ken Morris: It’s time to end financial exploitation against the elderly

By Ken Morris

No matter your wealth, you can’t buy time. That’s why it’s so important to make the most of it.

Fortunately, many seniors have excelled at managing their time and have been fortunate to have both good health and decent wealth. In Washington, the House recently passed the Financial Exploitation Prevention Act of 2023. The bill is currently in the hands of the Senate. Back in 2021, the House passed a similar bill, but for whatever reason, it never made it through the Senate. Hopefully, it will pass this time.

Unfortunately, some criminal elements are trying to get access to our private financial data almost every day. Their goal, simply to pry our hard earned money away from us.

We have to stay wary and diligent throughout our lives to prevent that from happening. However, the older we get, the more vulnerable we tend to become. Seniors deserve extra protection and I believe the bill is warranted and should become law this time around.

According to a 2020 study by the AARP Public Policy Institute, the average loss per incident against a senior is $120,000. It ‘s estimated that the cumulative yearly loss for seniors is a staggering $3 billion. In Michigan alone, there are an estimated 35,000 cases of financial abuse per year.

When it comes to handling client funds, there’s an overabundance of rules in the financial services industry. For example, if a client emailed me requesting money from their investments, I’m required to speak with them prior to executing the transaction. A few years back, after receiving such an email, I called my client to verify. As it turned out, my client’s email was hacked and there was no such request for funds.

There was a subsequent investigation by the local police who notified my client of the scam. When financial services industry mandates are properly received and promptly executed, alert financial advisors can provide an extra layer of protection.

One of the reasons I favor the proposed bill is that better phrase it provides a “timeout” for senior transactions. The bill that recently passed the House would allow investment firms, annuity companies and advisors to postpone redemption requests for up to twenty-five days if there were any suspicion of financial abuse or exploitation.

I don’t view this as an ultimate solution, but it’s certainly a step in the right direction. To be honest, there have been times when I thought family members were taking advantage of a good-hearted elderly parent. But at the end of the day, it is the client’s money. That’s a family matter 

However I was also involved when a supposed Good Samaritan neighbor wasn’t so well intentioned. Fortunately my organization contacted their out-of-town adult children and prevented any wrongdoing.

As people become older and older, the likelihood of them being taken advantage of increases. I believe that any steps that help protect seniors are steps in the right direction. Regardless of age, we need to guard against financial scams and crimes. Let’s help protect vulnerable seniors from the unscrupulous.

Full Article & Source:
Ken Morris: It’s time to end financial exploitation against the elderly

Thursday, March 16, 2023

In the Name of Protection, Part 4: The Lawyers: Peter Max’s Bare Ledgers Show Guardianships Drain Even the Rich

Illustration: Jonathan Hurtarte/Bloomberg Law. Photographer: Jim Vondruska/Bloomberg

by Ronnie Greene

Peter Max, who now has dementia, made millions creating psychedelic art that for a time put him on par with Andy Warhol as a ‘60s cultural icon.

Sara Abbott, who has a form of autism, gets by on $1,200 a month from Social Security disability and lives with her mother in a small house in southern Indiana.

Both are entangled in guardianships that were supposed to serve as salves but are instead mired in turmoil.

The similarities in their cases, despite deeply disparate lives, reveal the emotional and financial risks enshrouding guardianships. As Max’s memory faltered and his finances fell into disarray, he purportedly consented to having neutral guardians oversee his multimillion-dollar estate to achieve peace among his feuding family members. Abbott’s mother initiated a guardianship after a counselor suggested it.

Together their guardianships, which both began in 2016, highlight a simple truth found in a six-month Bloomberg Law investigation: It doesn’t matter how much money people have or how carefully loved ones watch over them; guardianships can evolve into costly quagmires where tussles over fees and control deter from the case’s core mission.

In New York, Max’s guardians and their lawyers have billed millions amid the family’s legal squabbles, suits, and countersuits. As a federal judge recently put it, it’s a “toxic situation.”

In Indiana, Abbott is pushing to terminate her guardianship after a tense journey. Her former guardian billed 91% of her total income during one eight-month period while questioning the family’s spending on everything from fixing the roof to buying a used car.

Across the US, guardianships are regulated in hodgepodge fashion, with different rules from state to state and no national requirements on who can become a guardian or how much they can earn. Adults in the system are protected by a flimsy regulatory safety net.

In any courtroom case, judicial oversight is vital to ensure legal costs don’t spiral out of control, said Jerome “Joe” Studer, a Chicago attorney who specializes in legal fee issues.

Studer said he was taken aback by Bloomberg Law’s findings on the fees in the two cases, particularly by the Indiana case in which the guardian billed nearly Abbott’s entire income. “The ratio strikes me as outrageous,” said Studer, founder of Legal Fee Analytics.

Max: Ceaseless Conflict

“Yeah, I understand,” was all it took for Max, 85, to enter into a guardianship that has done nothing to resolve the family’s feuds.

“You understand?” Judge Laura Visitacion-Lewis asked at the January 2016 hearing. She noted he was shaking his head to indicate he didn’t have any questions. With that, Max became a “Person In Need of a Guardian,” or PING, in court parlance.

Max, now in the advanced stages of Alzheimer’s, wasn’t formally adjudged to be incapacitated at the hearing, a ruling that could have negatively impacted the value of his art.

At the time, he was still painting and making public appearances.

Peter Max attends a 2014 event in New York City.
Photographer: Ben Gabbe/Getty Images for Gotham Magazine

His court-appointed counsel, Elizabeth Adinolfi, said he understood he needed assistance, “particularly in managing his finances,” and thought “it would be beneficial for him to have a neutral third party fulfilling that role,” court transcripts show.

The references to neutrality were a nod to the acrimony among Max’s family members over money, his art, and the family company ALP, Inc. “He loves his children very much. He loves his wife very much. And he does not want there to be any reason for the three of them to be in conflict,” Adinolfi said.

They hoped a neutral guardian could help “achieve some level of peace.”

More than six years later, conflict and litigation envelop the guardianship.

And it is costing Max a fortune.

Abbott: In the Dark

For Sara Abbott, 27, and her mother Diana Abbott, the legal morass began after a well-intentioned suggestion.

In 2016, a counselor recommended Diana put her daughter in a guardianship. She called the lawyer who handled her husband’s estate, and he agreed it made sense.

Sara Abbott wants to end her guardianship. “If I don’t, I’m going to lose my mom, my house, my life.”
Photographer: Jim Vondruska/Bloomberg

Diana was skeptical at first. “I said, Why do I need guardianship? I’m her mother.” But with two professionals suggesting that path, she became her daughter’s guardian that August.

A former stocker at a Dollar General store, Diana said she received no formal training. “I signed a paper, they pushed it through, and that was it.”

She failed to file biennial reports for 2018 and 2020 documenting her daughter’s financial affairs and well-being. Diana didn’t know, she said, she was supposed to file them. Washington Circuit Court Judge Larry W. Medlock removed her in 2021, questioning her oversight as guardian. He appointed a local lawyer, Lisa Fleming, as interim guardian, tasking her with documenting Sara’s spending and assessing her needs.

Thus began a contentious legal saga in which the temporary guardian’s fees would outpace Sara’s income.

Max: Fees on Fees

Max had paid about $1.8 million to his court-appointed lawyer, guardians, and their attorneys by the end of 2020, according to documents obtained by Bloomberg Law.

And that isn’t the half of it. Outstanding requests, either pending or approved, add more than $2 million, plus, conservatively, hundreds of thousands of dollars in accruing unpaid legal fees.

The guardianship order, filed in December 2016, revoked Max’s powers of attorney and health-care proxies, giving control of his finances and care to three court-appointed fiduciaries: a property guardian, Lawrence Flynn; a personal needs guardian, now Barbara Lissner; and his court-appointed lawyer, Adinolfi.

Flynn, who declined an interview request, is Max’s third property guardian, and he had two personal needs guardians before Lissner entered the picture in 2019.

The professionals have generated millions in expenses, either for their own services or for those of lawyers hired to litigate on Max’s behalf – often against his children over ownership of his art.

One pending fee request from Lissner, the personal needs guardian, is for her usual legal rate of $550 an hour. If approved by the court, it would total $598,664 for 13 months.

Libra Max, Peter’s daughter, has challenged that as “grossly excessive.” Lissner’s lawyer said she was unable to comment; the guardian has defended her billing in court filings.

Lissner doesn’t provide legal services to Max. Instead, her responsibilities are to attend to his personal needs and safety. Her time records describe over 1,000 hours of activities sometimes more akin to the services of a social worker or house manager.

One three minute entry reads “Guardian emails PING’s son that she hopes he is feeling better.” At Lissner’s proposed rate, that’s $27.50. Another entry for six-minutes reads “Guardian emails PING’s son to ask him if he visited his father the previous day and if he was able to fix the Netflix issue.” That’s $55.

The records also show that much of her time was spent managing inquiries from Libra and the daughter’s lawyers. Another attorney, hired by Max’s property guardian in the legal fight over his art, bills $650 an hour.

Lissner said in court filings she has yet to be paid. She isn’t alone.

As of May 2021, Max’s guardianship account had a balance below $5, according to an affidavit Flynn filed. Flynn said he had been forced to use some of his own money to pay for some of Max’s expenses.

Peter Max poses for a 1967 photo in New York. In 2022, a judge presiding over Max’s case visited Max and described his apartment as past its prime and said it’s “really unfortunate that such a formerly wealthy person is living like this.”
Photographer: Santi Visalli/Getty Images

Despite Max’s substantial estate – comprising more than $15 million in principal when Flynn took over in 2017 and more than $16 million in income from ALP over the same period – Flynn said Max was unable to meet his financial obligations.

Of the more than $16 million in income, more than $7 million went to cover back taxes, and roughly $893,000 went to a mortgage and apartment renovations.

The remainder of Max’s income has been spent trying to maintain the life the renowned artist had grown accustomed to with his late wife. Flynn said he needs at least $2.5 million a year for Max’s expenses but is receiving only a fraction of that.

The presiding judge has made clear the professionals will be paid.

“My first priority is to make sure that Peter is cared for in the best way possible,” Judge Lisa A. Sokoloff said during an April 22, 2022, hearing. “My second priority is to make sure all the attorneys who worked on this case get paid. It is astonishing to me that there are over $2 million in attorneys’ fees owed.”

Abbott: Questions and Fees

After the guardian was appointed to examine her case, Sara Abbott’s legal fees skyrocketed.

The temporary guardian, Fleming, quickly raised red flags with the judge about Diana’s use of Sara’s $1,168 monthly income, which was derived from Social Security Disability Insurance and Supplemental Social Security.

Eight days after Sara received one check with back pay in 2018, Fleming wrote, Diana bought a 2015 Ford Escape for $19,455, writing a check from her daughter’s account. “It is important to note that Sara does not drive, and the car is in Diana’s name only,” she wrote.

Fleming also noted in court filings that Diana put a new roof on their house, spending $4,500 from Sara’s account.

Diana Abbott said she received no training to become her daughter’s guardian.
Photographer: Jim Vondruska/Bloomberg

The accusation, mother and daughter say, is a fundamental misunderstanding of their situation: The money Diana spent was for her daughter’s benefit. Since Sara doesn’t drive, her mother provides all of her transportation. They have lived alone in the tidy family home in Salem since Sara’s father, Stephen, died in 2011.

“Sara says she was told the roof had to be replaced or she would lose her Homeowner’s Insurance,” wrote lawyer Amy Semones, representing Sara.

Said Sara: “How is that not for me? I need a roof over my head so I don’t get rained on.”

Fleming questioned other spending for electric, water and sewer, property taxes, and insurance.

“I believe there is a continued need for a guardian,” Fleming wrote the court on March 22, 2021. She said Sara needed help with medical, mental health, and social interaction needs and suggested Diana have “no access” to her daughter’s bank account.

Semones said their spending wasn’t frivolous. Sara “was consulted about and consented to all of the transactions” while her mom was guardian, the lawyer wrote.

And while Fleming was scrutinizing the roof and other spending, she was charging fees that resulted in half a day’s work totaling more than half of Sara’s monthly income.

On June 6, 2021, Fleming submitted an invoice for her guardian services for her first 3½ months. Her rate was $175 an hour. One bill was for $700 for 4 hours of work reviewing documents Diana provided her, which Fleming used to help form her March report.

In all, the total equated to more than $1,500 a month, more than Sara’s entire monthly income. A day after Fleming submitted her invoice, Judge Medlock approved it. Sara was on the hook for the bill.

The judge also questioned other spending and told Diana not to “spend money frivolously.” That September, the judge told Diana to reimburse Sara’s account $900 spent for Sara’s video games and another $600 on streaming services.

In all, Medlock ordered Diana to reimburse Sara’s account $11,720, including $3,000 for the roof and $6,485 for the car. He suggested she “consider the sale” of the family home.

Semones quickly pressed the judge about the close scrutiny of Sara’s spending that simultaneously threatened to deplete her account.

Semones called some of Fleming’s charges “unnecessary, duplicative and excessive,” particularly in light of Sara’s modest income. Fleming billed $175 for one hour spent copying records; Sara said she could make copies for 10 cents per page. “The invoice contains billable time for unnecessary travel in situations where a fax, phone call, email or internet search would suffice.”

In court papers, Fleming said her actions were “made in good faith on behalf of the protected person” and that she is “entitled to reasonable compensation.” After Semones questioned her fees, Fleming reanalyzed her bills – and increased the total by $52.50. The in-person meetings, she said, “were necessary.”

Fleming declined to discuss the case with Bloomberg Law. “I will not be talking with you about Sara Abbott,” she said.

All the while, the court denied Sara’s request for money for personal expenses. After Fleming took over, Diana, who had previously injured her back, said she was forced to return to work to “make ends meet.” Sara had to make written requests to the guardian for her bank statements and required permission to host a yard sale to raise money, wrote Semones, who was billing Abbott a reduced rate of $50 an hour while also seeking a nonprofit to represent her at no cost.

Max: Art and Lawsuits

Max was placed into a guardianship in part to prevent family infighting, but that original intention has been thwarted.

Generally speaking, “the more dysfunction in the family, the higher the costs of the guardianship,” said Katherine Pearson, a professor at Penn State Dickinson Law who specializes in policies related to aging. As disputes escalate, the legal costs spike.

Adinolfi, Max’s lawyer, said she couldn’t comment on the case. Speaking generally, she said guardianships can “be the best thing for a family” when they’re not contested. But when family dynamics are volatile, “it can drive a guardian’s time through the roof.”

Max founded ALP Inc., named for his children, Adam and Libra, and himself, in 2000. His children hold equal 40% shares. Max owns the remaining 20%, now controlled by Flynn, the property guardian.

In December 2019, Flynn’s lawyer sought to recover “all artworks produced by Peter,” along with the remainder of his “valuable intellectual property.”

Peter Max poses in New York City in 2012 with portraits he created of Paul McCartney. His family and guardians continue to spar over his estate.
Photographer: Timothy A. Clary/AFP via Getty Images

Flynn asserts that Max never intended for ALP – and in effect his children – to control all of his work while he was alive.

He claims Max had been suffering from dementia for two years, according to one of his doctors, when he supposedly transferred his intellectual property rights to ALP. In effect, Flynn is arguing that Max didn’t have the capacity in 2014 to transfer his intellectual property, even though he possessed the capacity in 2016 to enter into a guardianship.

Flynn has also said he has no choice but to aggressively pursue Max’s claim over the art, alleging that Libra began intentionally starving the guardianship in 2019 amid her legal wars with her father’s guardians.

Libra has authority to determine her father’s ALP income, and in court filings, has said she reduced his salary to $800,000 because the company has less cash on hand than normal.

Initially siding with Libra, Flynn voted to oust her brother Adam as president of ALP in late 2018 but by March 2020, Flynn had changed his mind. He accused Libra of misconduct and agreed to reinstate Adam as president, provided Adam agree not to contest the claim to his father’s art – or to oppose the guardians’ fee requests.

Adam’s attorney blamed Libra for much of the case’s chaos. “The plain reason that this matter appears to have spiraled out of control and incurred large requests for compensation by fiduciaries is directly correlated to the litigation that was instigated by Libra Max,” wrote Matthew S. Seidner.

Libra’s lawyer counters that the fees are the consequence of Max being “ripped from his family and loved ones at the end of his life.”

“Simply stated, if Peter was being cared for by his family, as is his wish, there would be no legal fees,” Clifford Meirowitz said. It “strains credulity,” he added, that he wanted “his life run by strangers.”

Libra has been seeking unsuccessfully since 2019 to have Lissner removed as her father’s personal needs guardian.

Their discord escalated in December 2021, when Lissner sued Libra for defamation in state court following an interview Libra gave on Fox 5 New York two months earlier criticizing the guardian.

So now, the court-appointed official watching over Max is formally at legal odds with his daughter.

Libra can see her father, but only when Lissner agrees, and is generally prohibited from accessing his medical information or speaking with his physicians.

And it has all been approved by the court. Adam has said he has no problems seeing his father and, in court filings, has supported Lissner’s care.

In April 2022, Sokoloff – the fifth judge to preside over Max’s case – told Lissner and Libra to be civil, or communicate through lawyers. “I don’t want to be called to find out that Libra isn’t leaving, because I will come over with the police, and you don’t want that.”

About a week later the judge visited Max. She described his apartment as past its prime and said it’s “really unfortunate that such a formerly wealthy person is living like this.”

“He talked to me a little bit,” the judge said. “He was drawing and painting with markers.”

Abbott: Seeking a Way Out

As she found herself deeper in the system, Abbott said she felt invisible.

“I was being treated like I was insignificant,” she said from her hometown 100 miles south of Indianapolis. “I have a big motivation to get out of this guardianship. If I don’t, I’m going to lose my mom, my house, my life.”

Her friction with the guardian was clear to Medlock, who “observed in Court the behavior of the ward and her mother towards Ms. Fleming to be disrespectful.” But on this, too, there are two sides to the story.

Abbott is a detail-oriented woman who keeps careful track of her schedule. After the judge appointed Fleming as her guardian, she took to taking notes during their meetings.

“She has not once listened to a word I have said,” she wrote of their first session in 2021.

“Fleming claims that her goal is to ‘help me save money and be frugal’ despite the fact that she is/will be charging me for not only these weekly meetings but also any interactions with her,” she wrote. “The fees for these meetings will more than likely deplete my account.”

As they continued to meet, Abbott said Fleming objected to her taking notes. “Fleming asked me to put binder down. I told her I am more comfortable with it out,” she wrote of their second meeting. “It is hypocritical of her to complain of me taking notes for my own records if she does the same.”

Abbott is now also working with Justin Schrock, an attorney with Indiana Disability Rights representing her at no cost in her bid to end the guardianship.

Schrock formally challenged Fleming’s bills. By October 2021, Fleming had billed $8,915.85 for eight months – or $1,114 a month, 91% of Abbott’s total income, then at $1,225.

Indiana Attorney Justin Schrock is representing Sara Abbott as she fights to be released from her guardianship.
Photographer: Jim Vondruska/Bloomberg

As Abbott awaits her day in court, her case has undergone major change. Last March, Fleming was replaced as guardian by Loren Pilcher, chief operations officer of a behavioral therapy company called Sweet Behavior, who supports Sara ending the guardianship.

In June, Judge Medlock recused himself from the case, citing its “conflict and animosity” in an interview. Medlock said he had concerns about some of the “suspect transfers,” prompting him to appoint Fleming. “I was asking for a different set of eyes,” he said.

Asked about the family’s view that the spending benefited Sara, Medlock acknowledged some second thoughts. “Yes, honestly, when I do look back at it I think they do have something of a point.” But he said the costs should have been split between mother and daughter. Medlock agrees Indiana guardians “absolutely” don’t get enough training.

He said Fleming “did a lot of work and gave me significant insights into how the funds were spent,” but admitted her bills “were extensive” and “some of the meetings with Sara weren’t necessary.”

In the end, Fleming waived about half of her $12,000 final bill and Abbott paid $2,600, Schrock said. The judge got the county to pay the balance.

“I thought it best to recuse,” Medlock said. “I wanted to be fair to everybody. I wasn’t sure I could be.”

He said he’s not convinced Abbott is ready to terminate the guardianship and felt it better for another judge to resolve that question. “I had strong opinions about it.”

If the new judge frees her from the guardianship, Abbott said, “I might faint on the spot.”

Along the way, Diana has witnessed a more confident daughter emerge. “Sara has gotten her voice through all this,” she said.

Sara said she is ready to use that voice.

“Fight back,” she said. “Prove you’re functional. Don’t let people treat you like you’re lesser because you’re different.”

Full Article & Source:
Peter Max’s Bare Ledgers Show Guardianships Drain Even the Rich

See Also:
Guardians' Dark Side: Lax Rules Open the Vulnerable to Abuse

Judge’s Errors, Jail Threats Haunt Georgia Family’s Guardianship

420 Cases, One Guardian: System Runs Amok on Just $35 a Month

Clarity on Professional Guardian Compensation

After the confusion spurred by Section 950 of the Michigan Budget Act of 2022 (“Section 950”), the Michigan Attorney General’s Office and the Oakland County Probate Court have recently provided more clarity on compensation for professional guardians. Section 950 appeared to cap professional guardian compensation at $83/month, stating: “a court-appointed public guardian shall not be compensated more than $83.00 per month for any CMHSP-eligible recipient regardless of funding source.” Michigan Public Act No. 166, of 2022, Section 950.  This apparent cap had led many across the state to believe that a public guardian’s compensation was now limited to $83/month in total, crippling the financial feasibility of a career as a professional guardian. 

Recently, the Michigan Attorney General’s Office weighed in (while not providing an official Attorney General Opinion, which may only be provided subject to a specific process and request made by certain officials) through a written response to a Petition before the Oakland County Probate Court. The Attorney General’s response clarified that it will not intervene in any cases to enforce a cap of $83/month on guardianship compensation. The response also referenced the Michigan Department of Health and Human Service’s (“MDHHS”) opinion that MDHHS has no jurisdiction to monitor third-party payments to guardians and that it also has no intention to enforce the $83 monthly cap on guardianship compensation. 

Helping to resolve the issue, the Oakland County Probate Court later issued an Order clarifying that Section 950 of the Michigan Budget Act does not in any way limit the compensation of professional guardians and that the Michigan Estates and Protected Individuals Code (“EPIC”) controls. EPIC provides that a professional guardian may be compensated, without limitation, from “a source other than the estate of the ward, developmentally disabled individual, incapacitated individual, or protected individual.”  MCL 700.5106(4). 

With the clarification from the Oakland County Probate Court and the Attorney General’s Office, professional guardians may be safely compensated above and beyond the apparent $83 cap outlined by Section 950. However, it’s important to note that EPIC mandates additional reporting for third-party payments to professional guardians, which involves its own set of requirements.  

As a note of caution, the expressed view of the Attorney General’s Office and MDHHS are not binding and may be subject to change. The final language related to guardianship compensation in the 2023 Michigan legislative budget could be an important marker of whether Section 950 was a drafting error not meant to limit compensation for professional guardians, or whether the legislature does intend to place a cap professional guardian compensation moving forward. 

Full Article & Source:
Clarity on Professional Guardian Compensation