Monday, March 11, 2024

Wendy Williams’ guardianship case highlights the need for reforms

Wendy Williams attending an awards luncheon at the New York Hilton hotel in 2019. Lars Niki/Getty Images for New York Women in Film & Television

by Janet Nguyen

There have been a lot of questions about financial guardianships since the disclosure that former talk show host Wendy Williams has such a conservatorship in place.

Lifetime recently aired a four-part documentary called “Where Is Wendy Williams?” that highlights Williams’ health, family and financial struggles, including the appointment of a guardian over her finances.

Prior to the documentary’s launch, Williams’ care team announced that she has aphasia, a brain disorder that can affect a person’s ability to write and understand language, and frontotemporal dementia, another brain disorder that can lead to behavioral changes and loss of speech. 

Experts who are not personally involved in Williams’ case told Marketplace that guardianships can help individuals who are unable to manage their finances, but that the system can be exploited, underscoring the need for reform.  

How guardianships are set up

When someone reaches “the point of having diminished decision-making capacity,” there are important financial decisions to make, said Andrea Seielstad, a professor at the University of Dayton School of Law. 

They’ll have to assess their financial resources, continue paying bills and look into retirement and long-term disability policies, among other life decisions, Seielstad said. 

“If there isn’t somebody there to do it [for them], everything starts falling apart,” Seielstad added. 

But the person who helps with those financial matters must have legal authority to do so, she explained.

“So it’s necessary because somebody has to stand in and protect them, and pay their bills, and keep their house over their head, or move them into a facility,” Seielstad said. 

Laws vary by state, but all guardianships start with a petition filed in court, explained Nina Kohn, a professor at Syracuse University College of Law. A variety of people may file a petition.

”The idea is that anybody who is interested in the welfare of the individual can go to court to seek protection for the individual. That is often family members, but it might be others who are aware of a concern about the individual,” Kohn said. 

Financial advisers or financial institutions with ties to the individual can also petition the court, Kohn noted. 

In a best-case scenario, a judge would decide if the subject of the petition needs a guardian by taking a nuanced look into a broad range of factors, explained Sarah Lorr, an assistant professor at Brooklyn Law School in New York. Those include the person’s ability to take care of themselves, prepare food, purchase items, save money, create and maintain relationships.

But inquiries like that take a lot of work, so they aren’t the norm, Lorr said. Instead, the reality is that judges are influenced by medical labels and driven out of fear to “protect” the person subject to guardianship, she explained.

“I think some labels are much more likely to lead to unnecessary guardianships than others, or at least more immediate guardianships than others. So for example, intellectual and developmental disability,” Lorr said. “Anything that sort of impinges upon or suggests that there is an imposition on cognition I think really raises alarms for judges.” 

Lorr added that judges are concerned about psychiatric diagnoses.

“Which is just so unfortunate, because obviously there’s a broad range of functioning in any individual with a diagnosis, and there’s so many different treatments and ways of living with a diagnosis,” Lorr said. 

Who can be appointed guardian? 

Another key concern is who gets appointed financial guardian. Kohn said family members typically become guardians because they’re often the petitioners. 

“As a practical matter, that’s the person who’s in front of the court. That’s often a person saying, ‘Sign me up,’” she said. 

Then there are professional guardians, which include attorneys, doctors and social workers. 

“Professional guardians may be appropriate where there’s reasonable concern that families have engaged in exploitation, or there’s reasonable concern that potential family appointees wouldn’t be able to put the interests of the person before their own interests,” Kohn said. 

Professional guardians may have relevant training and experience, such as financial management, that would be beneficial in a guardianship, Kohn added.

On the other hand, “there is concern that courts are too quick to appoint a professional guardian when there’s family conflict, and there’s legitimate concern nationally that sometimes judges and professional guardians have overly cozy relationships,” Kohn said. 

Professional guardians are paid court-approved fees that are generally based on the time they spend performing their duties, Kohn said. 

“Because many professional guardians are attorneys, you end up getting the attorneys’ hourly rate charged for services that don’t require an attorney to do them,” Kohn said. Family members often work as guardians without pay, but they can be eligible for fees just like professional guardians. 

In cases involving high-net worth individuals, guardians may benefit from substantial fees, she said. 

If a guardian is paid, then it’s in their interest for the conservatorship to continue, said Margo Lindauer, a professor at Northeastern University School of Law.

If a guardian swindles funds from the person they’re protecting, the guardian could face disciplinary hearings or criminal penalties, Seielstad said. 

Some states have found ways to hold guardians accountable, Seielstad said. In Minnesota, conservators “are required to submit an inventory to establish the assets and estate of the protected person” online and account for each transaction annually. 

Other ways conservatorships are abused

But sometimes conservators fail to comply with mandates like annual financial reporting. In an opinion piece for The Hill last year, Kohn wrote how former NFL player Michael Oher had “filed a court petition alleging that he had been duped into ‘agreeing’ to a conservatorship.” Oher was the subject of the 2009 film “The Blind Side.” 

In Tennessee, a judge has to find “clear and convincing evidence that the person is disabled and needs that assistance,” but a judge still placed Oher under a conservatorship despite finding otherwise, Kohn wrote. 

She wrote that his case highlights how “courts unnecessarily strip people of their rights and then fail to monitor the risky arrangements they create.” Oher also alleged his conservators failed to file “a single accounting of his funds even though Tennessee law requires this annually,” she said.

“Moreover, as Oher’s apparent continued confusion about his conservatorship suggests, courts often fail to adequately explain to people subject to conservatorship what that arrangement means and what their rights are under it,” Kohn continued. 

Avoiding guardianship problems 

Seielstad said there are some early steps people can take to avoid the complications that may arise with guardianships. 

“People can avoid the necessity of appointment of a guardian by electing good family members or others to act as powers of attorney, should the need arise, taking care to designate alternates in the event the primary one becomes unable to do the duties,” Seielstad said. 

Lindauer said she would like to see more transparency.

“I think people under guardianship should have more information and more ability to have a say in the process and who is the guardian,” she said. 

In the case of Britney Spears, who was placed under involuntary conservatorship by her father and a lawyer, the guardianship had “become an oppressive and controlling tool against her,” an investigator reported. She didn’t know she could choose her lawyer, the pop singer wrote in her memoir, or that she could petition to end the conservatorship, she told a judge. 

When it comes to reforming guardianships, Kohn said states could implement the Uniform Guardianship, Conservatorship and Other Protective Arrangements Act, a statute drafted by a nonprofit that advocates for consistent laws across the country.

Under the act’s provisions, “guardians cannot be appointed unless there is a substantial need and no less restrictive alternative would meet that need,” she said.

Guardians would be limited in their ability to stop the protected person from interacting with family and friends.

She added it would also “create new mechanisms for monitoring guardian’s conduct.” Barring a good cause, she said courts would be required “to mandate that guardians tell adult children and spouses of certain big changes in a person’s life, such as a change in the person’s primary residence,” Kohn said.

“This isn’t just a story about bad apples doing bad things when they’re appointed guardians. This is really a story about courts removing people’s rights without adequate justification, and then not monitoring the relationship to make sure that it’s actually protected for people,” she said. 

It’s difficult if not impossible to quantify how often this happens, because Kohn said “there is a profound lack of data on the guardianships.” 

But Kohn is optimistic the system can be changed.

“I think this is something that is fixable. Profoundly fixable,” she said.

Full Article & Source:
Wendy Williams’ guardianship case highlights the need for reforms

See Also:
Wendy Williams

Former Atlanta real estate attorney faces federal prison for stealing over $3M from clients


The following was taken from a press release distributed by the United States Attorney’s Office – Northern District of Georgia on March 5, 2024:

FULTON COUNTY, Ga. – Matthew Allen Dickason, a disbarred attorney who was previously licensed to practice law in the State of Georgia, has been sentenced to federal prison for embezzling more than $3 million from his clients. Dickason used the money for personal purposes and created phony accounting records to cover up his theft.

“As a mortgage industry insider and attorney, Dickason had a fiduciary duty to his clients and the banks funding the mortgage transactions, but instead he illegally siphoned funds for himself and his mortgage-closing company,” said Edwin Bonano, Special Agent-in-Charge of FHFA-OIG’s Southeast Region. “Today, justice was served. We are proud to have worked alongside our partner agencies on this case to arrive at today’s conclusion.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Matthew Allen Dickason was an attorney licensed to practice law in the State of Georgia and was the owner of Matthew A. Dickason, P.A., a law firm located in Atlanta, Georgia. Dickason specialized in real estate law and was responsible for overseeing hundreds of real estate sales transactions totaling tens of millions of dollars.

While employed as an attorney, Dickason knowingly devised and conducted a scheme to defraud and obtain money from clients under false pretenses. Specifically, Dickason misappropriated millions of dollars belonging to clients who trusted him to handle their real estate transactions.

To conceal his scheme, Dickason took one client’s money and used it to pay his own or another client’s expenses. He used this deceptive practice again and again.

This allowed the scheme to go undetected for years. Dickason also hid his fraud by causing false and misleading information to be entered into his law firm’s accounting system to make it appear that the firm had paid a client’s mortgage when, in fact, Dickason had used the money for fraudulent purposes.

Dickason, 48, formerly of Atlanta, Georgia, and now living in Wellington, Ohio, was sentenced to 27 months of imprisonment, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $3,005,159.19. Dickason was convicted on these charges on October 16, 2023, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development-Office of Inspector General, and the Federal Housing Finance Agency-Office of Inspector General.

Assistant U.S. Attorney Russell Phillips prosecuted the case.

Full Article & Source:
Former Atlanta real estate attorney faces federal prison for stealing over $3M from clients

Sunday, March 10, 2024

‘Supported decision making’ bill for people with developmental disabilities clears the legislature

Rep. Allison Tant
The Legislature has signed off on a measure, crafted with the help of the Elder Law Section and the Real Property, Probate & Trust Law Section, that would create a guardianship alternative for people with developmental disabilities.

The Senate voted 40-0 on Monday to approve HB 73 by Rep. Allison Tant, D-Tallahassee. Sen. Corey Simon, R-Tallahassee, sponsored the companion, SB 446.

Sen. Corey Simon
“Big smiles, this feels really good,” said Elder Law Section Chair Victoria Heuler, a Tallahassee attorney, moments after the vote.

Heuler said she and other Elder Law Section attorneys worked with the sponsors, Real Property, Probate & Trust Law Section representatives, and Disability Rights Florida advocates on the measure.

Moments before the final vote, Simon credited Tant, a champion for disability rights, with crafting the proposal.

“She has done an amazing job, she has worked the last four years to make sure we got all the stakeholders at the table,” Simon said.

The bill simply states that when weighing the appointment of a guardian, a court would be required to consider the person’s “ability to independently exercise his or her rights with appropriate assistance.”

The bill defines supported decision making as “an agreement in which the power of attorney grants an agent the authority to receive information and to communicate on behalf of the principal without granting the agent the authority to bind or act on behalf of the principal in any subject matter.”

The bill makes it clear that a supported decision-making agreement is “not a durable power of attorney.”

According to a staff analysis, the measure has the potential to “reduce costs to the court system for guardianship and guardian advocate proceedings to the extent that those proceedings are replaced by supported decision-making agreements.”

It’s designed to help people who can live and work independently, but who may need help navigating some challenges, she said.

Assisted decision-making agreements are a type of “assistive” or “communicative” tool, Heuler said.

“It’s a legally recognized way, an elevated, legally recognized way, to get someone to go to meetings, communicate wishes, be that assistant,” she said. “But now it’s codified in law.”

Source:
‘Supported decision making’ bill for people with developmental disabilities clears the legislature

Caregiver accused of leaving patients in van while she shopped


CINCINNATI (WKRC) — An employee at a company in Cincinnati that serves the developmentally disabled is accused of leaving patients in a van while she shopped at Walmart.

Pamela Shaw faces multiple counts of patient endangerment and patient neglect.

She left three patients in a work van while she shopped for personal items on Sept. 30 at the store on Red Bank, according to court papers.

All three have severe disabilities that require 24/7 care.

They were allegedly left with her son, who is not a qualified caregiver.  

Full Article & Source:
Caregiver accused of leaving patients in van while she shopped

Dog comes to rescue after owner falls through ice

A P.E.I. man credits his dog for coming to his rescue after falling through the ice on Shipyard Road outside Kensington. Andrew Lorimer explains how one dog got him into trouble and the other saved the day.


Source:
Dog comes to rescue after owner falls through ice

Saturday, March 9, 2024

Cindy Hagen Triumphs Over Guardianship Battle, Returns Home After 294 Days

by Bijay Laxmi

Cindy Hagen Triumphs Over Guardianship Battle, Returns Home After 294 Days

Cindy Hagen's prolonged hospital stay ended as she returned home to Mankato, marking a significant victory for her and disability rights advocates in Minnesota. After being hospitalized for an infection, Hagen faced a challenging battle against an imposed emergency guardianship, which threatened her autonomy. Her case has reignited discussions on the civil rights of individuals with significant disabilities and the ongoing crisis in home health care staffing.

From Hospital to Home: A Journey of Persistence

Hagen's case began when she was admitted to the Mayo Clinic hospital in Austin for an infection treatment. Despite her recovery, a staffing shortage for her care prevented her return home, leading to an emergency guardianship that confined her to the hospital for nearly ten months. The guardianship, potentially stripping her of her independence, was contested by Hagen and her legal representation. Their fight culminated in her triumphant return to her Mankato apartment this week, following a court's decision to dismiss the guardianship petition.

The Broader Implications: Disability Rights and Care Staffing Crisis

Hagen's ordeal has cast light on the larger issues facing individuals with disabilities in Minnesota and across the nation. A critical shortage of home health care workers has heightened the struggle for many to maintain their independence, forcing some into institutions. This staffing crisis, exacerbated by inadequate Medicaid reimbursement rates, poses an ongoing challenge for those who rely on personal care assistance for their daily needs. Hagen's story emphasizes the urgent need for systemic changes to support both the disabled community and their caregivers.

Looking Ahead: Hagen's New Beginning

Despite the hurdles, Hagen's return home signifies a new chapter in her life and a moment of reflection on the importance of self-determination for individuals with disabilities. She now faces the task of rebuilding her in-home care team, a daunting yet hopeful endeavor. Hagen's resilience and the community's support for her case underscore the broader dialogue on enhancing the lives of those with significant disabilities, ensuring they can live where they feel wanted and maintain autonomy over their lives.

Full Article & Source:
Cindy Hagen Triumphs Over Guardianship Battle, Returns Home After 294 Days

Wendy Williams' Guardian Caught in $5.5 Million Fraud Scheme Amid Star's Health Revelations

by Dil Bar Irshad

Wendy Williams' Guardian Caught in $5.5 Million Fraud Scheme Amid Star's Health Revelations

In a shocking legal twist, Wendy Williams' guardian, Sabrina Morrissey, and her firm are named defendants in a lawsuit alleging a multimillion-dollar fraud scheme. This controversy unfolds as Williams' health struggles, including a battle with frontotemporal dementia linked to alcohol addiction, come to light in a revealing Lifetime documentary.

Guardianship Controversy Unveiled

The lawsuit, initiated in November 2022, accuses Morrissey, Morrissey & Morrissey LLP, and several attorneys of conspiring to establish a "baseless guardianship" over Jose Verdugo, a victim of a construction accident who had won $5.5 million in personal injury claims. This guardianship allegedly facilitated a fraudulent scheme, exploiting Verdugo's financial assets. Verdugo's legal team withdrew the case in August 2023, leaving many questions unanswered about the motives and methods behind the alleged guardianship abuse.

Wendy Williams' Battle with Health and Autonomy

Parallel to these legal battles, Wendy Williams' personal struggles have garnered significant attention. Her son, Kevin Hunter Jr., disclosed in the documentary "Where is Wendy Williams?" that his mother suffers from frontotemporal dementia, a condition he attributes to her previous alcohol misuse. The documentary, which achieved record ratings for Lifetime, casts a somber light on Williams' rapid health decline, her departure from her iconic talk show in 2022, and the controversial guardianship limiting her financial autonomy.

Public and Legal Scrutiny Intensifies

As details of the lawsuit and Williams' health emerge, questions about the ethics of guardianship and the protection of vulnerable individuals' rights have intensified. The case against Morrissey and her firm brings to the forefront concerns over guardianship exploitation, while Williams' public battle with dementia underlines the need for compassionate care and the risk of financial manipulation. These developments have sparked a broader conversation on guardianship laws, celebrity vulnerabilities, and the mechanisms in place to safeguard individuals' well-being and assets.

As the legal proceedings against Morrissey and the firm progress, and as Williams navigates her health challenges, the spotlight on guardianship abuse and the implications for those under such care continues to grow. This unfolding saga serves as a cautionary tale about the vulnerabilities of individuals, both financially and health-wise, and the imperative for legal and systemic reforms to protect them.

Full Article & Source:
Wendy Williams' Guardian Caught in $5.5 Million Fraud Scheme Amid Star's Health Revelations

See Also:
Wendy Williams

AARP Recognizes 167 Financial Organizations for Their Role in Fighting Financial Exploitation

WASHINGTON—Today, AARP announced the 167 banks, credit unions and financial advisory firms that earned the BankSafe Trained Seal in recognition of the steps they’ve taken to curb financial exploitation.

This represents an almost 25% increase in the number of seal recipients since last year. Notably, more than one-third of this year’s recipients have earned the seal at least three times in the last five years. A list of the financial organizations that qualified for the 2024 BankSafe Trained Seal can be found here.

“These financial organizations continue to take meaningful steps to ensure their staff have the tools, skills and confidence to spot and stop financial exploitation before money ever leaves an account,” said Jilenne Gunther, National Director of AARP’s BankSafe Initiative. “Many of these organizations have earned the Trained Seal for three or four consecutive years.”

Based on a Virginia Tech study, it is estimated that BankSafe-trained employees have helped prevent nearly $300 million from being stolen from the accounts of older adults since 2019. These BankSafe-trained employees play a crucial role in protecting over 230 million customers across the U.S.

To earn the esteemed seal, organizations must ensure over 80% of their frontline staff complete AARP’s comprehensive BankSafe training, alongside actively pursuing policies to address suspected financial exploitation. Eligibility for the seal also requires a positive standing in Better Business Bureau ratings and adherence to specific legal and regulatory standards.

A June 2023 AARP report found that at least $28.3 billion a year is stolen from adults over the age of 60 in the U.S. This report underscores the importance of empowering financial organizations and their employees to recognize and act against financial exploitation.

The BankSafe Trained Seal is not a product or service endorsement but indicates that a financial institution’s frontline employees have been substantially trained in financial exploitation prevention. Training courses for each respective industry are available at no cost to banks, credit unions and financial advisors in the United States.

More information about AARP’s BankSafe trainings and resources, including how to sign up for the training, can be found at aarp.org/banksafe.

###

Source:
AARP Recognizes 167 Financial Organizations for Their Role in Fighting Financial Exploitation

Friday, March 8, 2024

Bedbugs, Rats and No Heat: How One Woman Endured a Decade of Neglect in New York’s Guardianship System


by Jake Pearson, illustrations by Dominic Bodden

The temperature was plummeting on Thanksgiving eve when Judith Zbiegniewicz wrapped herself in a blanket, picked up her phone and tapped out yet another plea for help to New York Guardianship Services. It was 2018, and for the previous five years the company, whose slogan is “caring that makes a difference,” had overseen nearly every major decision in her life, as it did for hundreds of New Yorkers deemed incapable by the courts of looking after themselves.

The organization had repeatedly maintained in court filings that Zbiegniewicz, who was 65 and suffered from depression and anxiety, was doing well under its supervision and that the Queens apartment it had placed her in was the “best and only place for her.” Each year, court examiners reviewed the reports and a judge signed off on their assessments.

In truth, though, Zbiegniewicz lived in squalor on the second floor of a dilapidated home whose roof had partially collapsed. She’d complained when her mattress teemed with bedbugs and when rats gnawed the legs of her kitchen chairs. Yet every month, her legally appointed guardian had taken $450 in compensation from her bank account as her living conditions deteriorated.

Now, with no heat and a cold front barreling down on the city, she stuffed bath towels under a door to block the draft and again appealed to NYGS.

“While you and every one at the guardianship are home in a warm house and having Thanksgiving dinner think of me. In a apartment without heat and can’t,cook. And rats in the kitchen,” she wrote on the evening of Nov. 21, 2018. “So much for where caring makes a difference.”


Three decades ago, New York was at the vanguard of a national movement to prevent such exploitation. State lawmakers passed progressive legislation to codify wards’ civil rights and maximize their independence. Under the law, guardianships were supposed to be tailored to the needs of the individual, with regular court examination to safeguard their welfare.

But today, the system is in shambles, leaving thousands of vulnerable New Yorkers sequestered, voiceless and forgotten while the officials who oversee their care struggle to ensure it, according to a ProPublica investigation. In New York City, there are just over a dozen judges to handle the 17,411 people in guardianships, data provided by the courts show. With that load, cases can sit for years without any kind of meaningful oversight. The hardest hit are poor New Yorkers like Zbiegniewicz, whom the state has entrusted to a network of loosely regulated nonprofits. The outcomes for some of these individuals — known in industry parlance as the “unbefriended,” because they have no family or anyone else to help them — have been dire.

In one case, a guardian didn’t notice his ward had died and continued to collect payments for the man’s care even after his death. In another, a guardian told the court in a report that they didn’t know where their ward was for a year. Case managers had visited her apartment but never went in. Eventually a utility worker discovered the woman’s corpse, covered in maggots, decomposing in her own bed.

That the 1990s reforms have failed has been an open secret for years among advocates, lawyers and judges, who have repeatedly called for an overhaul. But the state lawmakers and judicial leaders who have the power to improve it have not done so — even as cases like that of Britney Spears have brought national attention to the issue of guardianships.

ProPublica reviewed hundreds of pages of court records, interviewed dozens of lawyers and experts and talked to the wards who are least equipped to advocate for themselves. What we found is that some of the remedies that policymakers introduced 30 years ago to bolster care and curb abuse, like minimum qualifications for guardians and court examination of their reports, are in dire need of an upgrade.

Today, for example, it is far easier in New York to become a guardian than a nail technician. Parties need only complete a day-long course — far less training than is required in some other states, including California, Texas and Florida. And oversight of their work is similarly threadbare, consisting primarily of a court-appointed examiner who focuses almost exclusively on financial paperwork and a judge who signs off on the examination. But with thin ranks of reviewers, annual assessments can take years to complete. And officials rarely, if ever, see the wards in person.

The easy entry and lack of oversight, critics say, has helped attract unscrupulous nonprofits that take advantage of the wards they are supposed to protect.

In 2015, the chief financial officer of one nonprofit was convicted for stealing more than $50,000 from a ward’s accounts, government documents show. That same year, state regulators found that another nonprofit improperly loaned its top officials more than $250,000 while wards were unnecessarily kept in nursing homes.

Today, even those who helped write the state’s main guardianship statute, known as Article 81 of the Mental Hygiene Law, concede the yawning gap between its promise and its practice has rendered it, in the words of one, “basically pointless.”

“Keeping people out of guardianship in the first place is the single most important thing to do, because once you’re in it, it’s the toilet you get flushed down,” said Kristin Booth Glen, a former judge who helped craft the law and has called for reform for years. New York’s oversight of guardianships has been “a total and utter disaster,” she said.

Few groups illustrate the consequences of that failure better than NYGS, the organization that was supposed to care for Zbiegniewicz. Over the past decade, the company has grown to become one of the largest providers in the business, drawing $450 in monthly compensation each from hundreds of wards’ accounts while providing as few services as possible, according to court documents and six people familiar with the company’s operations, including former employees.

“Everybody is shirking responsibility,” said Carla Billini, the former director of case management for NYGS. She resigned last April after a decade in the job, saying she was fearful that the company’s practices would result in harm to wards. “How is there nobody above the guardian who watches all the guardians?”

A spokesperson for the Office of Court Administration, which runs New York’s court system, said that judges face “extremely challenging circumstances” but do the best they can under the law. “The caseloads are extremely high and individual cases can persist for decades,” he said. “Yet, the courts never give up in searching for solutions to ensure the well-being of some of society’s most underserved populations.”

NYGS executives declined to be interviewed for this story. In a statement, Sam Blau, the company’s chief financial officer, said that as a fiduciary he was barred from answering questions “about any specific client.” However, he noted, “we are accountable to the Court and our annual accounts and reports are scrutinized by Court appointed examiners and any issues would be addressed.” NYGS did not answer written questions about the company’s broader business practices.

In his statement, Blau called ProPublica’s reporting “misguided, without full and proper context, filled with omissions and less than accurate information.” But when asked to specify his concerns, he did not respond.

Zbiegniewicz’s decadelong experience as a NYGS ward serves as a road map to how Article 81 fails New Yorkers who are least able to protect themselves.

“Somebody’s Going to Come Help Me”

Zbiegniewicz’s introduction to guardianship came as it does for thousands of others in the city each year: through a call to the city Adult Protective Services program by someone concerned about her well-being.

It was November 2008, and Zbiegniewicz was struggling financially and emotionally. Her father had died suddenly from a heart attack a year and a half earlier, leaving her the family’s Maspeth, Queens, home — and, to her surprise, a reverse mortgage. The outstanding debt was $266,532.95.

Zbiegniewicz had no job and no way to pay. She had been dependent on her father all of her adult life, the result of an early trauma: At 18, she was raped leaving the subway on her way to work at Queens’ Welbilt Stove plant. Her world became small, as her devastated parents shielded her. She never sought therapy, never returned to work and rarely ventured beyond the comfort of her block.

Now, with the house in foreclosure, someone called the city to check on her. Adult Protective Services soon sent a psychiatric nurse practitioner, who diagnosed Zbiegniewicz with depression, anxiety and a dependent personality disorder. In a court petition, the city noted that she relied on food stamps and public assistance. With bills piling up, she had just $459.88 in her bank account.

So on a January day in 2010, to help Zbiegniewicz stave off eviction, a city lawyer walked into a wood-paneled courtroom in the state Supreme Court building in Queens and asked a judge to declare her an “incapacitated person” in need of a guardian to manage her finances and housing.

Zbiegniewicz, who declined to attend the hearing, initially welcomed the move. “I was in no condition right then and there,” she said. “I was all alone, no direction, no nothing. I thought, ‘OK, somebody’s going to come help me get focused and leave.’”

The judge granted the city’s request, setting in motion Zbiegniewicz’s spiraling journey into New York’s overloaded guardianship system, which now contains 28,619 people statewide, more than 60% of whom live in New York City. In most cases, a judge selects either a so-called lay guardian — family or friends who volunteer — or a professional guardian, usually a lawyer, which can be pricey. For the thousands of New Yorkers like Zbiegniewicz, who have no family and too little money to be worth a professional guardian’s time, a judge will choose from just under a dozen nonprofit groups, depending on the circumstances. In cases where Adult Protective Services is involved, that means one of three publicly-funded organizations.

In Zbiegniewicz’s case, the judge initially appointed the Jewish Association for Services for the Aged. Its mandate was narrow: stopping her eviction.

The guardian negotiated the sale of Zbiegniewicz’s family home, paid off the reverse mortgage and secured $92,000 for her in the deal. Once the money was placed in a special needs trust, JASA’s mission was complete. The judge then turned to the list of professional guardians to help Zbiegniewicz find new housing.

But the task was a challenge. Zbiegniewicz insisted on keeping her five beloved schnauzers and living with four longtime friends who’d supported her after her father’s death. The arrangement made her a tough tenant to place, and by July 2013 she’d faced eviction from two separate apartments where she had withheld rent until repairs were made.

Before long, Zbiegniewicz’s professional guardian wanted out.

Like many private attorneys in the system, she was working the case pro bono, and her petition to be replaced reflected a larger strain in New York’s system, which has long relied on such goodwill to handle guardianships of the indigent.

Private lawyers have “stopped taking cases in droves because they don’t want to spend the time,” Arthur Diamond, the former supervising guardianship judge in Nassau County, told state lawmakers in 2018. “And it can be an immense amount of time being a guardian for somebody who has Alzheimer’s and dementia, which many of our wards do.”

NYGS pitched itself explicitly to the courts as a solution to this problem. A lawyer for the group once wrote to a Queens judge in a letter obtained by ProPublica that the company “hopes to fill a need in the court system” by taking those cases in which a judge would otherwise have “a difficult time finding a suitable guardian willing to act.”

In a July 2013 hearing, Zbiegniewicz’s private guardian suggested NYGS take over her case because “they seem to have a significant amount of resources.”

Supreme Court Justice Lee Mayersohn OKed the switch, making NYGS the third guardian to handle Zbiegniewicz’s case in three and a half years.

Exploding Caseloads, Little Vetting

The guardianship bill state lawmakers passed in the early 1990s established the first training requirements for guardians before they can serve — generally a daylong class meant to ensure they have a baseline familiarity with Article 81’s requirements. That’s less stringent than what the state requires of prospective nail technicians, who must complete a 250-hour course and pass tests. This low barrier to entry can allow a family member who steps up to help a loved one in crisis quickly get in place. But advocates say that New York’s permissiveness also enables exploitative actors to enter the guardianship business.

At the time of NYGS’ founding, Blau was working as the director of judicial compliance at another guardianship firm, according to his LinkedIn profile. The state attorney general’s office investigated that group, Integral Guardianship Services, during Blau’s tenure, and eventually accused it of abandoning its most basic duties, including filing annual reports detailing wards’ finances. (Blau wasn’t named in the probe, which the group settled. The firm shuttered its operations last spring.)

NYGS’ chief operating officer — Blau’s older brother David — had been running an unrelated e-commerce business, selling discounted travel coupons, according to former employees.

Once certified, private guardians are required to attest that they haven’t been found to have violated any criminal, civil or professional rules. Nonprofits, however, undergo no such vetting. In fact, they are not even required to provide proof of their charitable status.

Had there been such a requirement, the courts would have seen that NYGS is not registered as a charity with the state attorney general’s office nor does it have tax-exempt status from the Internal Revenue Service, both agencies confirmed. Nevertheless, the company repeatedly represented itself as a nonprofit in its court filings and promotional material as it took on more and more cases, including Zbiegniewicz’s.

The distinction is significant. Nonprofits are exempt from court rules that cap the number of cases and the amount of compensation guardians can receive annually. Such operations can be lucrative. One estimate commissioned by the state attorney general in 2016 projected that a nonprofit guardian serving 400 low-and-no-fee wards could generate $1.2 million per year.

Sam Blau declined to answer questions about the company’s tax status, but said in a statement that “a large percentage of our cases are done completely Pro Bono,” which “is certainly in line with our mission to help people of minimal financial means.”

In pitching the firm to the court, NYGS’ lawyer painted a picture of an organization with a “cadre of knowledgeable and caring individuals” experienced in guardianships who used “state of the art records management technology.”

In reality, the Blau brothers operated out of a cramped second-floor office on Avenue J in Midwood, Brooklyn, that was strewn with stacks of government forms, old checkbooks and financial statements. For years, employee chats show, the cremated remains of a ward sat in a plastic bag on the shelf of a hallway closet, nestled in a plain white container the size of a shoe box. The “state of the art” technology it used to manage its caseload were actually Dropbox and Google Docs, former employees said.


NYGS’s business grew rapidly by taking on dozens of new cases annually — a strategy that former employees said was intended to maximize profit on the $450 per month apiece it earned from most of its wards. But staffing didn’t keep pace with volume, and workers realized that in order to do the job well, the firm needed to take fewer cases and throw significant resources at the ones it already had.

That didn’t happen.

In 2016, when the company had 167 clients, it employed two full-time case managers, internal records show. That was true the following year when the total caseload jumped to 248 and remained the case the year after that, when NYGS was responsible for nearly 300 wards. Two more employees were hired in 2018 to handle wards’ finances. Several studies, as well as states including Virginia and Colorado, recommend a 20-client limit to ensure proper care. New York, however, has no equivalent guidance, and at one point NYGS had 83 wards per staffer, according to internal records.

More recently, former employees said, the company outsourced key jobs to workers in the Philippines who were expected to address the complicated insurance, banking and health care needs of vulnerable wards from 8,500 miles away. One worker told ProPublica that she was so troubled by the lack of resources and ceaseless calls — she was responsible for dozens of wards every day — that she quit after six months.

For years, unless judges specifically asked, they had no way to know whether nonprofits they assigned actually had the bandwidth to take on new cases. It wasn’t until last fall that the state court system, using a federal grant, created a database so that judges and court staff can “better oversee the flow and nature and structure of guardianship cases,” the courts’ spokesperson said.

Within NYGS, complaints about the conditions, the lack of resources or a ward’s specific problems were usually met with silence, said Billini, the former director of case management. Sam Blau would just “stare into his computer when you’d tell him something he didn’t want to hear,” she said. “We called it the passive-aggressive stare.”

The former case manager, as well as other workers, said this dynamic would play out time and again after NYGS moved Zbiegniewicz into the upstairs apartment of 150-15 Yates Road, a two-family home in a dangerous section of Jamaica, Queens. It was seven miles and a world away from the spacious Maspeth house where she’d lived most of her life.

Blau did not respond to questions about Billini’s account. In a general statement, he disputed ProPublica’s reporting, which he claimed was based on “disgruntled former employees who have a clear biased agenda.”

Bedbugs, Rats — No Questions Asked

Zbiegniewicz suspected something was amiss with her guardian from the start.

Shortly after moving into the Yates Road apartment, she discovered bedbugs. She said she complained to NYGS immediately, but it took three months before the company sent pest control. The disruption caused her therapist to cancel weekly sessions until an exterminator certified the insects were gone, Zbiegniewicz said.

“I was tore up from the floor up,” she recalled of the bites.

In its filings to the court, however, NYGS presented Zbiegniewicz as thriving. In language that would repeat year after year, a company social worker who visited the home wrote that “Ms. Zbiegniewicz is oriented to person, place, and time,” described the frequency of her therapy sessions and the medications she took, adding that she “enjoys gardening and taking care of her dogs and roommates.”

To ensure the integrity of such reports, the system includes a layer of protection for wards in the form of court-appointed examiners. By law, these individuals — typically lawyers or accountants — are tasked with reviewing guardians’ reports to “determine the condition and care” and finances of the ward, as well as “the manner in which the guardian has carried out his or her duties and exercised his or her powers.” In practice, the scrutiny can be far from robust.

Today, there are just 157 examiners responsible for reviewing the reports of 17,411 New York City wards, according to data from the court system. And their training can be minimal. In Brooklyn, Queens and Staten Island, this includes viewing a set of instructional DVDs that were recorded 12 years ago.

Like the cost of the guardianship itself, the price for these examinations is borne by the ward.

Zbiegniewicz paid a few hundred dollars each year for an examiner’s reviews. But her records show these examiners did not interrogate spending that indicated potential housing problems.

In 2014, for example, Zbiegniewicz’s account listed four separate disbursements — totaling $1,251 — for extermination, laundry and cleaning services, all explicitly labeled as bedbug remedies. Yet when the examiner asked whether the housing was “best suited” to Zbiegniewicz’s needs, NYGS said it was “appropriate.” There’s no indication in the file that the examiner at the time, Paul Guttenberg, pressed any further or followed up on the extermination expenses. Guttenberg, who declined to be interviewed and didn’t respond to emailed questions, approved NYGS’ report.


The subsequent examiner of Zbiegniewicz’s case, Janet Brown, was similarly uncritical. Court data show she carried a significant caseload. Zbiegniewicz was just one of 44 new cases Brown picked up in 2015 alone — a pace that would continue throughout the guardianship. Each year, after reconciling the financials, she signed off on NYGS’ reports, including those that showed Zbiegniewicz paying to address more problems a landlord would typically be expected to cover: $180 for electrical work in January 2018, then $30 more for an electric stove that May and $50 for a heater in December.

That year, when Brown asked whether Zbiegniewicz’s apartment was “best suited to her current needs,” an NYGS employee responded, “It is not the ideal placement, but currently it is the best & only placement” for her.

The employee provided no further explanation in the filing, and there is no indication in the court record that Brown asked for one.

Meanwhile, the conditions in the apartment steadily worsened, according to emails, court filings and interviews with four other people who spent time there.

“Now the rats are eating the kitchen chairs,” Zbiegniewicz wrote to NYGS in a March 2019 email. “By the time I leave I will not have anything to take.”


That year, the guardianship reported spending $280 of Zbiegniewicz’s money for “storage containers and pest Control,” as well as “reimbursement for Extermination and Bathroom Repair.”

There is no indication in the court records that Brown even examined these 2019 expenses. While Article 81 requires guardians to file wards’ annual accounts by May of the following year, there is no such deadline for examiners. Zbiegniewicz’s file is still missing reviews for four years of her guardianship.

In an interview, Brown said that her job was to “make sure the dollar amounts balance out” and that funds were not “being misused.” By those standards, there were no disbursements in the annual reports that “raised an eyebrow,” she said. She said she wasn’t aware of the chronic heating problems, the collapsed roof or the pest infestations in the Yates Road apartment, despite the expenditures for extermination and various capital improvements in the reports she reviewed.

“I would have had no way of knowing that unless someone directly reached out to me and said, ‘Hey, this is a problem,’” she said.

Brown didn’t respond when asked why she didn’t file her reviews for 2019 through 2022.

Zbiegniewicz said that for years she had no idea that she could take her complaints to the examiner. When she finally did phone, she said, Brown conferenced in a NYGS employee and left the call.

Brown, who is no longer an examiner, said she didn’t recall that conversation, but that she remembered Zbiegniewicz was vocal about her desire to be released from the guardianship. Brown said that she believed she discussed that with someone at NYGS but she couldn’t recall with whom or what was said.

“I do genuinely care,” she said, “even if you don’t think so.”

Experts said the failure to conduct face-to-face check-ins could hide horrific situations. Judicial leaders, they said, can and should bolster examinations with home visits. For example, in Davidson County, Tennessee, which includes Nashville, social services workers visit wards, review their medical records and interview guardians and their doctors.

“You’ve got to visit the person,” said Booth Glen, the former judge who helped write Article 81. “Paper is not enough when human lives are at stake.”

With Judges, “Things Just Get Locked In”

Examiners are the main check on guardians, but judges also review examiners’ reports before signing off.

Zbiegniewicz believed that if Mayersohn understood how dire her living conditions were, he would require NYGS to fix the situation. The son of a state assemblymember, he started his career as a legislative aide and practiced law for nearly two decades, focusing on trusts and estates, among other civil matters, before being elected to the bench in 2004.

What Zbiegniewicz didn’t know was how long it could take for information to get to the judge — and how long it could take him to review it. She is just one of 1,566 open guardianship cases currently on the judge’s docket, according to court data. Such a robust caseload, coupled with too few examiners, can add years to the oversight process, creating dangerous gaps in information in cases like Zbiegniewicz’s.

For example, in the spring of 2018, NYGS submitted its guardianship report for the prior year, as required by law. The paperwork contained numerous indications that something was wrong at Yates Road. Notably, no rent payments were listed for the apartment and the company acknowledged for the first time that the house was “not the ideal placement” for Zbiegniewicz.

But a full year passed before the examiner filed her review with the court, where it was eventually checked by clerks and then passed to Mayersohn for approval. In all, the entire process took more than two years. None of the parties raised alarms over, or even noted, the missing rent payments.

Had they dug deeper, they would have found that Yates Road had gone through a foreclosure and been sold to a bank that was moving to evict Zbiegniewicz and her friends. It’s unclear who actually owned the house when NYGS moved her there; the deed had changed hands multiple times in quick succession. During Zbiegniewicz’s first two years in the house, the guardian had sent $32,000 of its ward’s money to a firm run by a Queens entrepreneur who was later convicted of real estate fraud in an unrelated case. When the eviction notice arrived, NYGS stopped paying the rent but appeared to do little else.

“Phone calls to the guardian in an attempt to work out some sort of reasonable solution have failed since the guardian has refused to respond to any call,” an attorney for the new landlord wrote in a December 2017 court filing. The company eventually hired a lawyer to respond to the landlord-tenant action.

For more than two years, while the official reports on Zbiegniewicz’s welfare crawled through the court system, NYGS kept her in the home.

During that time, she endured all manner of horrendous living conditions. According to her emails to NYGS, she went long stretches without heat and rats ate holes through her clothes. When the apartment lost power, she and her roommates had to jury-rig the breaker box with a popsicle stick to feed electricity upstairs.

“You have to get in contact with someone,” she wrote to NYGS on Jan. 20, 2018, when her refrigerator lost power. “We are running extension cord from the basement to up stairs. We are hungry did not eat yesterday.”


When NYGS failed to act, Zbiegniewicz and her roommates complained to the city, triggering visits from building inspectors, who documented no running hot water and failure to supply adequate heat. That prompted the Department of Housing Preservation and Development to sue the new owner, who agreed to pay fines to settle the lawsuit.

It’s not clear just how much Mayersohn knew about these cases. The siloed nature of New York’s sprawling courts can leave guardianship judges in the dark about significant developments elsewhere in the legal system. That makes the guardian's report — and the examiner's review — even more critical for guardianship judges. But neither NYGS nor Zbiegniewicz’s examiner mentioned the escalating legal actions in their reports.

Mayersohn declined to be interviewed, saying judicial ethics opinions barred him from commenting on “any pending case in any jurisdiction,” and he didn't respond to detailed written questions about his handling of Zbiegniewicz’s case.

Within NYGS, staffers were growing increasingly concerned for Zbiegniewicz’s well-being and passed complaints along to David and Sam Blau, said Billini, the firm’s former case manager. A nurse practitioner for the company confirmed the deplorable conditions on her quarterly visits to the house and reported back to NYGS.

“Client remains angry and frustrated over her living conditions — roaches, mice and rats,” the nurse wrote in notes submitted to the guardianship in February 2019. “There is mold — breathing unhealthy. Would like things to move along.”

And yet, nothing changed, Zbiegniewicz said. (The Blaus did not respond to requests for comment on these claims.)

So in 2019, she started calling Mayersohn’s chambers. She phoned so frequently, she said, that the judge’s secretary knew her case number by heart. But the judge never talked to her when she called, she said. Like the examiner, the secretary sent Zbiegniewicz’s complaints back to the guardianship.

"Once a guardian is appointed, the court’s tendency is to just work with the guardian,” said Joe Rosenberg, who co-directs the CUNY School of Law’s Disability and Aging Justice Clinic. “I think it’s tough to get out of that cycle. And perhaps that’s in part because it’s hard to find another guardian. Things just get locked in.”

The demand for guardians is particularly great among elderly New Yorkers “who are alone, with no one to help, and few or no resources,” the Vera Institute of Justice, a legal reform nonprofit, reported in 2018. And so groups like NYGS fulfill the court’s “greatest need,” said acting state Supreme Court Justice Charles Troia during a panel discussion on guardianships in 2021. “We need agencies that are willing to help those that truly have nothing.”

Other judges, the courts’ spokesperson said, have advocated for structural changes, including replacing nonprofits with “a statewide, state-supported public guardian program for indigent persons.”

But for now, without such an agency to serve poor wards with considerable needs, judges have few other options.

Zbiegniewicz was better able to advocate for herself than wards who have severe health problems, but even she worried that her persistent complaints may have hurt her cause. She said she got the feeling that the judge and lawyers and court staff believed she was unstable and therefore easy to dismiss. “It used to drive me up a wall,” she said of the Article 81 designation attached to her name. “That is a badge saying that I'm cuckoo.”

“This Is My Life and I Want It Back”

After years of turmoil, David Blau notified the court in May 2019 that he had negotiated a resolution to Zbiegniewicz’s five-year-plus housing crisis: The bank would pay her $5,000 to leave Yates Road and NYGS would, in turn, place her in an assisted living facility.

Zbiegniewicz “suffers from a debilitating anxiety disorder and requires assistance with her finances,” Blau asserted in a court petition. The conditions, he argued, necessitated a higher level of care. Billini and other staffers inside NYGS disagreed. Zbiegniewicz and her court-appointed attorney did too.

In a June 2019 filing opposing David Blau’s petition, the attorney informed the court that Zbiegniewcz had already moved out of Yates Road on her own. That month she’d married her longtime friend Leonard Hubbard, and the couple were living together in a city shelter.


Nevertheless, Mayersohn ordered Zbiegniewicz to find proper housing and ordered NYGS to “support” her in that endeavor. But again, Zbiegniewicz said, the company failed her. She needed her financial records to apply for subsidized housing, but she said NYGS responded slowly to her requests or not at all. She managed to get the records on her own and worked with a social worker at the shelter to secure a new home, she said.

“I need to be in control of my own life and I can’t wait on you to do something, to give me paperwork, to give me this, or anything,” she told David Blau in an Oct. 29, 2020, voicemail. “This is my life and I want it back. Thank you.”

Zbiegniewicz said she never heard back after leaving that message. And because the pandemic shuttered the courts, there were no appearances in her case for more than two years. She was in legal limbo, without any kind of oversight.

“These people do not care about you,” Zbiegniewicz said.

Eventually, she secured a one-bedroom apartment for herself, Hubbard and their new dog, Bogart, in a Long Island City building overlooking the East River for $905 a month. With a housing voucher and public benefits covering two-thirds of the rent, it’s far cheaper than the $1,350 she shelled out each month to live on Yates Road. Ironically, because of an oversight by NYGS, she was able to access her bank account to help pay rent.

Mayersohn finally released Zbiegniewicz from the guardianship in February 2022. In NYGS’ final report, the company disclosed taking $12,551 to cover “unpaid monthly compensation” for the nearly two and a half years she had effectively lived outside the guardianship. The lump sum payment brought the balance of Zbiegniewicz’s accounts to zero.

To date, nobody involved in her case — from NYGS to the examiners who approved the company’s reports — has been held to account. But there is still time for the judge to consider their actions.

Because NYGS failed to file the required paperwork to settle Zbiegniewicz’s account, her case technically remains open. A lawyer for NYGS finally filed that motion in January — two days after ProPublica first contacted the organization for comment on this story. The paperwork now awaits Mayersohn’s signature.

In January, Zbiegniewicz sent a letter to Mayersohn, describing the “injustice and mistreatment” she said she’d endured.

“All I would like is to be heard and for New York Guardianship Services to be held accountable for what they did and did not do for me,” she wrote.

Mayersohn’s secretary confirmed receipt on Jan. 31 but cautioned that, due to a significant backlog, it would take time to resolve her guardianship.

Full Article & Source:
Bedbugs, Rats and No Heat: How One Woman Endured a Decade of Neglect in New York’s Guardianship System