Articles Posted in Financial Exploitation

nursing home abuse

10 Ways Banks Can Help Prevent Elder Financial Exploitation

Not only are family members and financial caregivers watching out for financial abuse targeted at the elderly, including vulnerable nursing home residents, but banks and other financial institutions are also filing an increasing number of suspicious account reports (SARs). This year, the Office of Financial Protection for Older Americans received over 180,000 encounters of suspicious elder financial exploitation (EFE), involving a total of more than $6 billion since 2013.

Noted in a 2019 report published by the Office of Financial Protection for Older Americans, banks reported a total of $1.7 billion in suspicious activities in just 2017, including actual losses and attempts to steal the older adults’ funds.

healthcare fraud

Miami-Dade Nursing Home Owner Convicted in Largest U.S. Healthcare Fraud Scheme

Just last week, a 12-person jury deliberated for four days before finding Philip Esformes, a 50-year-old entrepreneur and owner of a network of 16 nursing homes and assisted living facilities in Florida, guilty on 20 out of 26 charges related to healthcare fraud. This is believed to be the largest fraud scheme ever charged by the U.S. Justice Department and a reflection of the business owner’s greed through receiving kickbacks, money laundering and conspiracy to commit federal program bribery totaling $37 million. In an April 5th, 2019 public statement, prosecutors called him a “despicable,” “vampire” who was fueled by “unbounded greed.”

“Esformes exploited and victimized patients by providing inadequate medical care and poor conditions in his nursing homes. We will continue the fight against such parasites.”

nursing home theft

Public Guardian Says Dementia Resident Was Victim of Financial Corruption for Nearly a Year

Attorneys Steve Levin and Mike Bonamarte continue to offer legal support alongside acting Cook County Public Guardian Charles Golbert for a 97-year-old woman with dementia who was financially exploited by her nursing home care staff for the sum of three quarters a million dollars. It was initially believed the aging resident with dementia and no living relatives, Grace Watanabe, had her life savings of $600,000 taken from her by five care workers at Symphony Residences of Lincoln Park, located at 1366 W Fullerton Ave in Chicago. New information now suggests the amount stolen is actually closer to $750,000.

The legal team for Ms. Watanabe is working hard to recover the stolen money, hopefully with the help of Symphony administrators in releasing all requested documents regarding the financial exploitation. So far, one of the thieves has agreed to repay $15,000 to the victim.

 nursing home theft

Symphony of Lincoln Park Workers Caught Stealing $600,000 from Resident with Dementia

Levin & Perconti attorneys Steve Levin and Mike Bonamarte have begun work with acting Cook County Public Guardian Charles Golbert on a local financial exploitation case involving a 97-year-old resident with cognitive and memory disorders who required assistance with her finances and trusted the staff workers at Symphony Residences of Lincoln Park, a senior facility where she had been living since 2010. The Cook County Public Guardian has since been appointed the temporary guardian after receiving news by the Illinois Department of Aging and Adult Protective Services of the financial exploitation allegations and suspicious spending between the resident’s bank account and facility employees. The Department receives more than 8,200 reports of financial exploitation involving nursing home residents each year.

It’s believed the aging resident, who previously led a life at an Arizona based Japanese internment camp during World War II against her will, and then worked hard in a career with the federal government, had earned a life savings of $600,000 which she was using to help care for herself at the Symphony facility. Because of her failing independence and need for mental health support, she required assistance in managing her savings but instead a group of workers took advantage. Today, five Symphony workers have been accused of spending their way through the woman’s personal life savings in a yearlong thieving scheme that included cashing checks, making large ATM withdrawals and accessing her funds without her consent. According to the lawsuit:

elderly financial exploitation

3 Times Nursing Home Staff Stole and Were Caught

It feels as though nursing home staff seem to be caught stealing from vulnerable and sick residents and their facilities more often. Brought on by the nation’s opioid epidemic, staff steal medication and patient drugs most often, but theft can also be in the form of residents’ possessions or finances, and when executives swindle millions from the company and spend it on personal items or other investments. Here is a special review of three times Illinois nursing home staff stole, they were caught, and justice was served.

  1. Drug Theft

financial exploitation

Investors Claim Rabbi Stole Millions Out of Chicago Nursing Home Deals

Several investors have come forward alleging a Skokie-based investment firm run by a rabbi, stole more than $20 million in a series of nursing home and retirement home funds around the Chicago suburbs in Norridge, South Holland and Morris, along with one Downstate, one in Indiana and the New Jersey facility. The suit alleges the investors are owed a total of more than $24 million counting interest due on their initial contributions.

According to a May 2018 report by The Real Deal, a publication catering towards Chicago real estate professionals, “a similar lawsuit filed in September in federal court in Chicago that alleges violations of the RICO act … In that suit, the investment firm created a series of LLCs to buy and sell nursing homes and retirement homes across the country, including several in the Chicago area and one in Wayne, New Jersey, according to the plaintiffs’ attorney, Craig Tobin.” Soon after, the firm was found to be keeping profits for themselves and not giving any to the investors and filling their pockets by taking from others who rely on nursing homes to survive. The scheme victimized “a 90-year-old Holocaust survivor, school teachers and sophisticated banking institutions,” the suit says. The federal lawsuit seeks more than $20 million in damages.

CBS Chicago reports that Bridget Pollard, a 76 year old Rogers Park woman suffering from bipolar disorder and dementia was convinced to send a check for $340,000 to Grace Cathedral, a mega church run by televangelist Reverend Ernest Angley in Akron, Ohio. The church preached that those who gave generously would guarantee their entry to heaven.

Mrs. Pollard’s husband died in 2015 and with no children to look after her, she lived alone and was able to easily remove $340,000 from her late husband’s pension. Mrs. Pollard is reported to have repeatedly refused care by others, but after her insistent niece paid her a visit, she discovered her aunt living without heat, water, or electricity, and amongst old garbage and 44 stray cats. Her niece also discovered her aunt’s emptied bank account and instantly realized she had been taken advantage of by the mega church. After reporting the incident, Mrs. Pollard is now under The Cook County Public Guardian, who has taken the lead on pursing a lawsuit against the church in order to recover all of the $340,000 she was conned into donating.

Although Mrs. Pollard had only been to Grace Cathedral several times, she kept in touch with Corliss Whitney, a singer from the church who became her power of attorney and also attempted to become her legal guardian. According to the Cook County Public Guardian, given the lack of contact between the two, Ms. Whitney took advantage of Bridget Pollard as part of a scheme to take money from the elderly. It is believed that Ms. Whitney had never attempted to look after Mrs. Pollard’s health or well-being, or remove her from the dire situation inside her home.

In discussing nursing home abuse or neglect, or more general abuse and neglect of elders, a sometimes overlooked form of abuse is financial exploitation.
Those close to the elderly and incapacitated, be it loved ones, friends, in-home caretakers, and staff at nursing homes and long-term care facilities. Financial exploitation can be anything. It can be the stealing of credit cards or ATM/debit cards, and it can be stealing identification and routing numbers for bank accounts or investment accounts. It can also simply be swiping cash or taking tangible items, like jewelry, out of a person’s wallet, purse or from their room. Identity theft often accompanies such financial exploitation, whereby someone uses a vulnerably elderly or disabled person’s identity to make financial transactions. In nursing homes specifically, staffers or administrators take advantage of individual patients, but also will take advantage of their position to generally defraud the facility where they work, and by association its patients as well as the government if the facility receives funding through Medicare, Medicaid or other channels.

Those committing such acts invite not just losing their jobs, but very serious criminal prosecution on the basis of multiple charges. Financial exploitation of anyone, such as theft of property or money, identity theft, it itself a crime, and in many states statutes that specifically deal with preying on the elderly or disabled will only serve to augment the charges and the possible sentence. Restitution, or paying the victim back, is only the start of the penalties, as there can be jail time as well.
Continue reading ›

Elder financial exploitation is often considered the most prevalent form of senior abuse. Estimates on the scope of the problem are notoriously difficult, because many seniors lie about being exploited, But, many peg the number at upwards of one in every ten seniors being taken advantage for their money in some capacity.

One of the reasons why it is difficult to curb this problem is that those abusing in this way infiltrate the lives of senior over a period of months or even years. Therefore, rooting out the mistreatment requires dealing with individuals that the seniors has entrenched relationships.

Illinois Senior Financial Exploitation

In the fight against elder abuse in the nursing home, we frequently point out that friends and family members are the front line of defense. Many seniors are unable to communicate their challenges, unfamiliar with their exact rights, and/or embarrassed about their situation. That is why relatives are needed to stand up and demand accountability when they suspect problems. It’s the very reason why this year’s theme for Residents’ RIghts Month is “Speak Out Against Elder Abuse.”

The challenge of identifying mistreatment does not exist only in the nursing home. In fact, the problem may be even more acute outside these facilities, when seniors live alone and may have less day-to-day oversight from trusted loved ones. One of the most common forms of elder mistreatment among seniors living on their own is financial exploitation.

Far too many individuals–from strangers to friends and relatives–are willing to use the senior’s situation for their own gain. The mistreatment can take the form of scams or forced agreements to outright theft. In all cases, it is illegal and wreaks severe havoc on the life of the vulnerable community member.

Lawyer Monthly - Legal Awards Winner
The National Trial Lawyers
Elder Care Matters Alliance
American Association for Justice
Fellow Litigation Counsel of America
Super Lawyers