Macomb County Woman Pleads No Contest to 18 Felony Counts for Stealing from Vulnerable Adults

July 12, 2024

LANSING – Yesterday, Lisa Ludy, 54, of Macomb, pled no contest, as charged, to 18 felony counts for stealing from two vulnerable adults for whom she was appointed guardian and conservator, announced Michigan Attorney General Dana Nessel. With her plea, Ludy agreed to pay $187,827.96 in restitution to her victims. 

Ludy pled no contest to the following charges:

• Two counts of Conducting a Criminal Enterprise, punishable by 20 years and/or $100,000; 
• One count of Embezzlement - $50,000 to $100,000, a 15-year felony;
• One count of Embezzlement - $20,000 to $50,0000, a 10-year felony; 
• Two counts of Embezzlement - $1,000 to $20,000, 5-year felonies;  
• One count of Embezzlement From a Vulnerable Adult - $1,000 or More But Less Than $20,000, punishable by 5 years and/or $10,000;  
• Four counts of Failure to File Tax Return, 5-year felonies;  
• Six counts of Financial Transaction Device-Stealing/Retaining Without Consent, punishable by 4 years and/or $5,000; and
• One count of Witness-Bribing/Intimidating/Interfering, punishable by 4 years and/or $5,000.

In 2016, Ludy petitioned to have her company, Community Guardian Care, Inc., appointed as a guardian and conservator for one of two victims. Upon the appointment as guardian and conservator, Ludy used her position and company to steal over $100,000 from the victim, which she used to pay personal bills and funnel money to her family’s companies, Career Health Studies, Career Health Training Corporation, and Applewood Adult Foster Care Home. Ludy also intentionally concealed the money she took from the victim and failed to file income taxes from 2016 through 2019.  

After Ludy was initially charged in 2022, a second victim reported that Ludy would not return his money. Ludy faced additional charges for stealing his Social Security income from his bank account by using his debit card to make numerous purchases and withdrawals from the account after she had already been removed as the victim’s guardian. Ludy also interfered with the victim and attempted to prevent and/or obstruct him from pressing charges and testifying in court against her.  

As a condition of the plea agreement, Ludy agreed to pay total restitution of $187,827.96 to the victims. Additionally, Ludy paid $7,000 in restitution at the plea to the victims. If Ludy pays an additional $10,000 in restitution by her sentencing date, the People agreed that she can be sentenced to a minimum sentence of 36 months’ incarceration concurrently on all charges. However, if she fails to pay the $10,000 in restitution by the sentencing date, Ludy agreed to be sentenced on all counts within the sentencing guidelines. 

“This plea secures meaningful restitution and justice for the vulnerable adults who were betrayed and exploited by the very person appointed to protect them,” Nessel said. “My department will continue to pursue accountability for court-appointed guardians and conservators who take advantage of the trust placed in them, and any who seek to enrich themselves by robbing our most vulnerable residents.” 

Ludy is scheduled for sentencing on Jan. 8, 2025, before Judge Julie Gatti in the 16th Judicial Circuit Court in Macomb County.

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Macomb County Woman Pleads No Contest to 18 Felony Counts for Stealing from Vulnerable Adults

When financial fraud becomes elder abuse

by Rabihah Butler

Elder abuse is more than physical violence or depriving of necessities, and in some severe cases, it is an attack on the mental and financial well-being of elderly people that can lead to the loss of savings or a broken heart

Elderly Americans, those 60 years old and above, are generally considered to be a vulnerable class — and with age comes concerns about physical health, mental agility, and overall security. While it is important to look out for the physical safety of the potential victim when looking at elder abuse, financial abuse often can be just as harmful.

Traditional elder financial abuse would likely come in the form of a close acquaintance taking advantage of their relationship with the victim to take possession of their property or money. This abuse could include manipulation to get expensive jewelry or convincing a vulnerable person to disclose bank codes allowing the illicit actor to drain the victim’s accounts.

While these are crimes, of course, they are much easier to catch and protect against than other types of financial fraud. In fact, bank employees are now encouraged to look for the signs of this type of manipulation and actively take steps to prevent it. However, less traditional financial abuse is becoming more concerning.

With theft by fraud skyrocketing — losses jumped to more than $10 billion in 2023, from $2.4 billion in 2019 — the rapid rate of is growth should put people (especially those in more vulnerable situations, like the elderly) into a more defensive and skeptical position. Indeed, elderly individuals are disproportionally vulnerable to this more complex and harder to detect type of theft.

In its 2023 report, the FBI’s Internet Crime Complaint Center (IC3) indicated that individuals under the age of 20 were the demographic least impacted by scams and fraud with only 18,000 reported victims, while those 60 years old and older saw more than 101,000 reported victims.

Understanding the root cause of elder fraud

Yet, to more fully understand the problem that some elders are facing you must first look at the root. Desperation and greed are among the reasons scammers have ramped up the use of schemes that will get money quickly from elderly victims. Scammers also look for options that have the lowest risk, so when considering crimes, they see elderly individuals as prime targets for several reasons, including:

• • • They assume that elderly individuals are the most likely to have disposable income or savings. While younger individuals are beginning their careers and are just starting to earn money, elderly individuals have had time to amass savings and often have disposable income available for use and investment.
    • Elderly people are often less knowledgeable about the complexities of technology, including newer ways of investing. This lack of understanding around recently developed technology platforms making it easier to manipulate the victim. This would include venues like dating apps or digital currency platforms.
    • The older the population gets, the more likely they are to be retired, widowed, or lonely. Often, this leads to elderly individuals seeking companionship or friendship; and sometimes, looking for those connections online can open up a whole different world of (unverified and anonymous) people with whom to connect.
    • Elderly people also tend to adhere to more conservative beliefs, keeping finances to themselves and not asking for help. So, during manipulation and even after a financial loss, elderly victims are often left in a situation in which they are less likely to speak about it. This makes reporting, prevention, and tracking more difficult.

This spring, several government agencies — including the Financial Industry Regulatory Authority (FINRA), the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), and the AARP (formerly the American Association of Retired Persons) — all took notice of the situation and issued warnings or guidance on the increases in elder financial crime, a stark reminder of this widespread problem.

In fact, FinCEN found that between June 2022 and June 2023, it had received 155,415 Elder Financial Exploitation (EFE)-related Bank Secrecy Act (BSA) reports associated with more than $27 billion in reported suspicious activity, which may include both actual and attempted transactions. It is important to note that this is only the number that was reported and does not account for instances in which individuals did not catch on to the fact they were the victim of a scam or instances in which the loss was not reported for other reasons. Further, an AARP report says that more than 40% of Americans (an estimated 141.5 million adults) say they have lost money to scams or had sensitive information obtained and used fraudulently.

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While it is easy to count how much money is lost, it’s not as easy to count the number of individuals who suffer from depression or even suicidal attempts as a result of being scammed.

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Elders are now facing many complex scams that are aimed at taking advantage of them in more significant ways. In 2023, the Top 5 scams reported to the IC3 were: tech support scams, personal data breaches, romance and confidence scams, product scams (non-payment or non-delivery), and investment scams. IC3 reports that the losses to investment scams alone totaled more than$1 billion in 2023.

And there is another factor that most people don’t even consider in the aftermath of a tremendous financial loss. While it is easy to count how much money is lost, it’s not as easy to count the number of individuals who suffer from depression or even suicidal attempts as a result of being scammed. For example, a 74-year-old retired teacher in Tennessee who was scammed for nearly $100,000 ultimately took his life as a result. In this case, the scammers were caught, but it highlights how these crimes need to be taken seriously.

Eva Velasquez, a former investigator for the San Diego District Attorney’s Office and who now serves as president and CEO of the nonprofit Identity Theft Resource Center, said the organization’s most recent study noted a sharp increase in the number of fraud victims who reported having thoughts of suicide after being conned.

What is clear is that it is important to educate elderly Americans on the use of technology and the reg flags they will inevitably come across, especially online. It is also important to continue to report and track these elderly financial abuse scams in order to try to prevent them in the future.

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When financial fraud becomes elder abuse

Lee County Auburn man turns himself in on financial exploitation of elderly charge

by: Nicole Sanders

MONTGOMERY, Ala. (WRBL) — An Auburn man turned himself into the Lee County Sheriff’s Office after he allegedly deceived a 60-year-old Alabama resident out of over $200,000, according to the Lee County District Attorney and Alabama Securities Commission.

James Clayton Langford III, 50, was taken into custody on Tuesday following his indictment of aggravated theft by deception and first-degree financial exploitation of the elderly. These charges can carry a sentence ranging from two to 20 years.

The indictment says Langford was a trustee on an investment account for the victim. According to that indictment, Langford allegedly obtained over $200,000 from the account, then used the money for personal use.

The first count alleges Langford obtained the money through deception. The second count alleges Langford also used deception, intimidation, force and other measures to gain control over the victim’s property.

According to a news release, Langford was out on bond as of Wednesday.

The ASC advices the public to research any investment opportunities. You can call the commission at 1-800-222-1553.

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Lee County Auburn man turns himself in on financial exploitation of elderly charge

Bill removing statute of limitations of elderly abuse, exploitation makes voting file

GUAM—With the support of his legislative colleagues, Democrat Senator Dwayne T.D. San Nicolas successfully moved Bill No. 243-37 (COR) onto the third reading file during regular session on July 2 at the Guam Congress Building in Hagåtña.

Bill 243-37 will remove the statute of limitations for financial and property exploitation of an elderly person or individual with disability, should it pass into local law. According to the National Council on Aging, up to five million older Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be at least $36.5 billion. The council also states that in about 60% of elderly abuse incidents, the perpetrator is a family member, usually the spouse or the children of the victim.

“The number of exploited elderly is astounding and justifies the creation of legislation to combat this issue,” said San Nicolas, author of Bill 243-37, a first of its kind in the nation. “All of these findings by the National Council on Aging are alarming, something which our manåmko’ and persons with disabilities need to be protected from by putting the law on their side. Financial exploitation of our manåmko’ and individuals with disabilities is a heinous crime that should not have a statute of limitations.”

If enacted into Guam law, this legislation will remove the statute of limitations in cases of elderly and disabled individuals’ financial exploitation and abuse. With this legislative measure, elderly and individuals with disabilities, victims of financial exploitation and abuse, will be able to pursue justice without the added worry of a deadline to file a lawsuit.

“As a government entity that serves the people, the Guam Legislature needs to enact legislation that would protect and help the manamko’ and people with disabilities find justice in incidents of financial exploitation and abuse,” he said.

Moreover, Guam Attorney General Douglas Moylan endorsed the bill during its public hearing on April 1.

“It’s about time,” said Moylan at the April 1 public hearing. “In our court system, there are too many of our manåmko’ that are being found out in guardianship cases and in probate cases that their lifetime savings have been taken from them, especially from their own family members that are ‘caregivers’. As we age everybody’s memories through the natural process become not as sharp as they used to be. I applaud the sponsor of the bill, Senator San Nicolas, for taking up this challenge. Our code is in need of protection right now. Our manåmko’ are in need of protection out there. They need to have the tools to do that. We, the AG’s office, fully endorse it.”

This shall become effective upon enactment. (PR)

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Bill removing statute of limitations of elderly abuse, exploitation makes voting file

Wabasha woman sentenced for embezzling over $3 million

by Mike Bunge

WABASHA, Minn. – A southeast Minnesota woman is sentenced for embezzling over $3 million from her employer.

Sharon Ann Schmalzriedt, 62 of Wabasha, was charged with felony theft and financial exploitation of a vulnerable adult.  She pleaded guilty to the theft charge and the other was dismissed as part of a plea deal.

The Minnesota Bureau of Criminal Apprehension says Schmalzriedt began an online affair in October 2019 with an individual identified as “Erik Lockwood.”  Investigators say “Lockwood” told Schmalzriedt he was owed $7 million for work “Lockwood” did in Dubai but needed to borrow United States currency in order to get that money.

According to court documents, Schmalzriedt began sending “Lockwood” her own money, then began stealing money for him from the Lewiston-based business Schmalzriedt worked for as a bookkeeper.  Agents say Schmalzriedt also stole money from a vulnerable adult she was financially responsible for and sent it to “Lockwood.”

Investigators say Schmalzriedt embezzled $3,751,337.06 from the business and $17,150 from the vulnerable adult.

Schmalzriedt has now been sentenced to five years of supervised probation and 1,000 hours of community work service.  She has also been ordered to repay the money stolen from the business.

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Wabasha woman sentenced for embezzling over $3 million

Study Links Credit Scores and Alzheimer’s Disease in Seniors

Missing numerous bill payments can damage a person’s credit score. But they could also signal a much bigger problem: damage to the brain from Alzheimer’s disease.

Families often miss the early warning signs of Alzheimer’s in a loved one. Symptoms may not start to show until the disease has progressed to later stages, at which point early intervention treatments are less effective and the financial consequences can be greater.

But a new study suggests that, for older adults, a credit score decline could signal cognitive decline. It adds to a growing body of research that links money problems to dementia.

Catching Alzheimer’s early is crucial from the standpoint of mental capacity, elder care, and estate planning.

Financial Deficits Mirror Memory Deficits in New Study

Credit scores start to go down and payment delinquencies start to go up in the years preceding a memory disorder diagnosis, according to new research published by the Federal Reserve Bank of New York.

Led by Georgetown University and supported by the National Institute on Aging, the study (“The Financial Consequences of Undiagnosed Memory Disorders”) found that, in the period leading up to a diagnosis of Alzheimer’s disease and related disorders (ADRD), credit outcomes noticeably deteriorate.

The researchers looked at credit card and mortgage payment histories from Equifax merged with Medicare data. Among patients diagnosed with ADRD, an increase in missed credit card payments began more than five years prior to diagnosis, while mortgage delinquency started three years prior.

Lead researcher Carole Roan Gresenz called the results “striking in their clarity and consistency.”

“Credit scores consistently decline, quarter by quarter, and probability of delinquency consistently increases as diagnosis approaches,” said Gresenz. “Our findings substantiate the possible utility of credit reporting data for facilitating early identification of those at risk for memory disorders.”

Finances Can Help to Catch Alzheimer’s Before It’s Too Late

It is becoming increasingly clear that financial missteps like missing routine bill payments could be an early predictor of Alzheimer’s that helps to detect the disease before major memory problems are apparent.

Georgetown’s Gresenz published research in 2019 that similarly showed compromised decision-making in money management can predict an Alzheimer’s diagnosis.

“Significant limitations and rapid declines in financial capacity are a hallmark of patients with early-stage Alzheimer's disease,” the abstract for that paper states.

In 2020, Johns Hopkins researchers released a study that discovered Medicare recipients later diagnosed with dementia are more likely to miss bill payments up to six years before a clinical diagnosis.

Alzheimer’s affects an estimated 6 million Americans, most of them age 65 or older. It remains the top cause of dementia in older adults and the seventh leading cause of death in the United States.

The results can be devastating as the disease progressively destroys memory and functional skills. But its exact cause is unknown, and diagnosis is notoriously challenging in the initial stages.

Money matters may be a leading indicator of Alzheimer’s because financial management is cognitively challenging, a specialist in geriatrics and memory care at UPenn told KFF Health News.

Even mild cognitive impairment can lead to financial issues when there are generally no other signs that a person is developing Alzheimer’s. In fact, financial problems are a common reason why loved ones are initially screened for dementia.

But by then, it might already be too late to avoid major money mistakes. For example, one Pennsylvania Alzheimer’s sufferer had her home foreclosed on due to missed mortgage payments. Her daughter only realized how bad her mother’s memory had gotten when she noticed abnormalities such as unpaid bills and strange cash withdrawals.

Unopened and unpaid bills, money missing from a bank account, difficulty balancing accounts, and new, unexpected purchases are some of the money-related signs that should be monitored in people who have dementia or may be developing Alzheimer’s, according to the National Institute on Aging.

Missed payments could be a sign that an older adult is developing Alzheimer’s. Stay on top of their credit reports and reach out to a local elder law attorney if you need legal advice about how to protect them.

The Importance of Early Alzheimer’s Detection

Many Alzheimer’s cases are not caught until they’re in the middle and late stages. But early detection, which may be easier if family members are paying close attention to an aging loved one’s bank statements and financial records, can help to stave off the worst consequences, both physical and financial, of the disease.

Although there is currently no cure for Alzheimer's, there are FDA-approved drugs that can help to slow its progression and lessen symptoms. However, these therapies work best when the disease is in its earliest stages, before permanent brain damage has occurred.

Early detection is also important for families caring for older adults with Alzheimer’s disease. It can help to set realistic expectations, plan together, and avoid potentially costly financial mistakes.

Georgetown researcher Gresenz notes in her 2019 paper that financial miscues during early-stage Alzheimer’s can reduce a patient’s net wealth. This can impact the ability to pay for care in the disease’s later stages.

One reason why Alzheimer’s may be linked to lower net wealth is financial exploitation. Cognitive changes associated with early-stage dementia has been shown to not only make individuals more susceptible to compromised financial decision-making on their own, but also make them more vulnerable to financial abuse and fraud.

Work With an Attorney

Estate planning for a loved one suffering from Alzheimer’s or dementia should include preparing for their long-term care and health needs, arranging to manage their finances and property, and naming another person to make financial decisions on their behalf using a power of attorney.

But executing estate planning documents requires having the mental capacity to do so. And if somebody has Alzheimer’s, they may lack the ability to give their consent. That’s why it’s crucial to have these documents in place before they’re needed — especially in cases where Alzheimer’s has been diagnosed or is suspected.

Many older adults living with early-stage Alzheimer’s still have the legal capacity to make their own decisions, but this might require a third-party assessment and attorney assistance.

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Study Links Credit Scores and Alzheimer’s Disease in Seniors

Hogan Legislation to Protect Seniors Passes House

HARRISBURG – Rep. Joe Hogan (Bucks) today announced his legislation to increase protections for seniors from financial exploitation passed the House by a strong bipartisan vote. 

House Bill 2064 authorizes the mandatory reporting and disclosure of essential records to state investigators. Additionally, financial institutions and fiduciaries would be able to temporarily delay transactions linked to suspected financial exploitation and engage in judicial proceedings to protect older adults.

House Bill 2064 would also authorize the sharing of information and records between financial institutions, fiduciaries and area agencies on aging. Like other voluntary reporters to protective services, financial institutions and fiduciaries would be immune from civil or criminal liability when exercising their discretion to report, share records, provide information to area agencies on aging and temporarily delay financial transactions.

“This is great news for older Pennsylvanians,” said Hogan. “When I held a hearing on the increase of scams and fraud in March of this year, we learned tens of thousands of dollars are lost every week in Bucks County to these types of criminal acts. This kind of legislation has been discussed for over a decade in Harrisburg but with no movement. I’m glad we were able to get this done and hopefully to the governor’s desk. Seniors hard-earned money is at stake.” 

House Bill 2064 now heads to the Senate for concurrence.  

Representative Joe Hogan
142nd Legislative District
Pennsylvania House of Representatives

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Hogan Legislation to Protect Seniors Passes House

Oklahoma’s elderly has lost more than $19M to fraud, research says

Story by Caroline Sellers

OKLAHOMA CITY (KFOR) – Oklahoma’s elderly lost millions of dollars to fraud in 2022, according to research.

Cybersecurity experts at VPNPro studied data from the Federal Bureau of Investigation and the Federal Trade Commission to see how many people fell victim to fraud in 2022. The data was studied based on how many victims were 60 years or older as part of each state’s elderly population.

Officials say Oklahoma had a total of 790 elderly fraud victims, averaging 87.3 victims per 100,000 elderly residents. For this age group, the state reported a loss of $19,455,718, which comes out to $24,627 lost per victim.

According to VPNPro, the scam that cost elderly victims the most money were investment scams with a loss of $404 million in 2022. The second was business fraud with $271 million lost and the third were romance scams with a loss of $240 million.

Those 60 and older are more likely to be scammed online than any other method. Older fraud victims lost a total of $564 million online compared to text, which was $90 million.

Ways elderly residents can fall victim to fraud:

• Online shopping
• Business imposters
• Tech support scam
• Government imposters
• Investment scams
• Prizes, sweepstakes and lotteries
• Romance scams
• Family and friendly imposters
• Fake check scams
• Vacation and travel

“Analyzing data on elderly fraud victims and losses by state can help policymakers, law enforcement agencies, and advocacy groups better understand the underlying factors contributing to financial exploitation of the elderly. It can also inform targeted interventions and resource allocation to mitigate the impact of fraud and protect vulnerable individuals.” said Sarunas Karbauskas, Technical Writer at VPNPro. “Examining which states have lost the most due to elderly fraud can shed light on the economic impact of such activities and potentially reveal areas where financial education and support are lacking.” 

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Oklahoma’s elderly has lost more than $19M to fraud, research says

‘It comes for your very soul’: how Alzheimer’s undid my dazzling, creative wife in her 40s

Vanessa Aylwin in 2021.  Photograph:  Courtesy of Michael Aylwin

By the time my wife got a diagnosis, her long and harrowing deterioration had already begun. By the end, I was in awe of her

By Michael Aylwin

My wife always said she would die of Alzheimer’s. It turns out she was right about that. For years, I insisted she would not. In the end, Vanessa clinched our little argument by dying last September, but we had known her fate since 2019, the year she was diagnosed, at the age of 49. For at least three years before that, though, the realisation dawned by hideous degrees which way the debate was going.

When we met, in the mid-00s, the proposition that Vanessa did not have Alzheimer’s, nor was about to develop it, was an easy motion to defend. She was dazzling and creative, with a successful career as a marketing executive. In that context, her preoccupation with this old person’s disease came across as a little absurd.

We met on the dancefloor of a nightclub in 2004. I was 32, she was about to turn 35. Far too old for a place like that, but we were reliving former glories in honour of mutual friends – a last glance back at our careless youth. When the management turned us out after a long night of carousing into the next stage of our lives, Vanessa scribbled her number for me on a piece of paper. How she would have loved to be able to do that only 15 years later.

A few weeks into our relationship, she told me that her mum, in her 50s, was dying of Alzheimer’s and, a little later again, that she was sure to do the same. I put her fears down to general fatalism, and spent much of the following decade insisting she had nothing to worry about. Until I could no longer find plausible grounds to argue that everything was fine.

A common question is: when did the disease start? There is no neat answer. It’s possible Vanessa could feel it coming on long before any of her symptoms showed. To the outside world, though, Alzheimer’s reveals itself by subtle degrees, each one plausibly dismissed in the early stages as “nothing”. And even when they start to become obviously “something”, there is usually a range of alternative explanations. The twisted genius of this disease begins with the way it smuggles itself in under the cover of other conditions. Absent-mindedness, ageing, menopause, through depression, anxiety and epilepsy – all would be presented as perfectly plausible explanations, first by me, then by some serious experts in their field. In retrospect, though, it began with a zit on her chin.  (Click to Continue Reading)

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‘It comes for your very soul’: how Alzheimer’s undid my dazzling, creative wife in her 40s