What would you do with 20 life insurance policies? Would you even buy 20 life insurance polices? Probably not, that is, if you knew what you were doing. Mary Mullen, an institutionalized senior—in her 80s—with Alzheimer’s disease, did not know what she was doing and so relied on salesmen from New York Life Insurance to take care of her. Instead, they took care of themselves. Those 20 life insurance policies– by the way—cost $600,000—and involved a number of elaborate schemes including an arranged marriage. New York Life, for their part, apparently refuses to investigate the suspicious policies, for which “the primary motivation” was “commissions and premiums.”
The whole sorry saga, which is now the subject of a lawsuit, began in 1994, when, according to Rebecca McFarland, trustee of the Mary Mullen Revocable Trust, one John Palmateer approached Mullen representing himself as an expert in insurance and financial matters. McFarland claims he gained Mary Mullen’s trust by visiting her occasionally, sometimes at the hospital. Of course, most people at this point would ask—’what about her family?’ Well, Mary Mullen had family, but they all lived out of state. Palmateer is accused of keeping the truth about Mullen’s deteriorating health from her family.
Palmateer also stands accused of collaborating with Mullen’s neighbor, Guido “Jack” Chirillo, to defraud the elderly woman of her assets. According to the complaint, “At Palmateer’s suggestion and direction, Chirillo married Mullen, who was then 87 years old, ostensibly to assist with the care of Mullen.” And, you guessed it, her family was never notified. BTW—Chirillo and Mullen never lived together.
The complaint also states, “Palmateer and [Jeffrey] Knight participated in a series of steps to Read the rest of this entry »
At the end of October, Lawyers and Settlements reported on a government investigation into hundreds of allegations of elder abuse. Sadly, the investigation found that court appointed guardians of incapacitated seniors are not screened or monitored, with serious, if not life threatening consequences.
The probe by the Government Accountability Office (GAO), an investigating arm of the US Congress, looked into review practices in 45 states. The GAO report was done at the request of the US Senate’s Special Committee on Aging, which has been studying allegations of abuse and diversion of federal benefits from elderly and disabled wards of the court for some time.
Their findings? Nothing short of shocking. Hundreds of allegations were discovered by the federal auditors, allegations of physical abuse and mistreatment by guardians entrusted with the physical, emotional and financial well-being of elderly and disabled people. For example, 20 cases involved criminal or civil penalties against guardians who had stolen at least $5.4 million in assets from some 158 seniors. According to a report on CNN.com a case in Missouri involved a convicted bank robber who had been appointed guardian of an elderly man who developed Alzheimer’s disease. As the senior’s condition deteriorated, the guardian was able to steal over $640,000 from him by writing checks out of the senior’s estate to pay for exotic dancers and a new Hummer.
With respect to physical abuse and neglect, an attorney for the National Guardianship Association provided the investigators with information on over 300 cases of alleged abuse, neglect and exploitation by guardians nationwide between 1990 and 2009. And, an advocate in Houston, who had personal experience of abuse of guardianship through her mother, provided information on 30 different families that submitted cases of abuse, with her help. “As Read the rest of this entry »
There are few things we at LawyersandSettlements.com cover that are as heartbreaking as financial elder abuse. The stories about senior citizens who have worked their entire lives to care for family members while ensuring that they, themselves, would be financially stable in their later years—only to have loved ones steal from them—arouse a combination of fury and sadness. The sad truth is that very few incidents of elder abuse are ever reported by the senior, leaving it up to other family members or close friends to figure out what’s going on.
The sad truth also is that in difficult economic times when many are facing financial hardship, sometimes the “easiest” route to some cashflow can involve the proverbial apple going back to the tree—uninvited. That’s why now, more than ever, it’s important to be aware of the signs of elder abuse and protect those who may be victimized.
This week, Pleading Ignorance examines financial elder abuse, signs it’s occurring and what you can do.
Financial elder abuse occurs when someone (a loved one, a close friend or even a stranger) preys on a senior citizen and cheats the senior out of money or property. It is a heinous crime and one that goes vastly underreported. The senior may be embarrassed at having been swindled, may be afraid of retaliation if the abuser is a family member or caregiver, may be conflicted about reporting a family member to the authorities or may be unable to comprehend that he was, indeed, the victim of a crime.
Seniors have lost their life savings, their homes, their valued jewelry or other property to abusers. At the same time, the abuser may take advantage of the senior’s condition by providing less care than is necessary or putting the senior in a care home that doesn’t meet the senior’s needs.
I’m fairly certain there’s a special place in hell for those who would do this to their elder family members. But before they get their due from a higher power, there are some signs to be aware of right here, right now, in order to help someone who may be the victim of elder abuse.
In many cases it’s up to family and friends to discover the wrongdoing and file a complaint. In the situation of Brooke Astor, a New York socialite and philanthropist, the victim’s grandson filed a complaint against his father—Astor’s son—alleging that Astor wasn’t being properly cared for even though she could afford a high quality of care. In the end, charges were laid against Astor’s son, he was found guilty and sentenced to time in jail.
The financial abuse may not have ever been discovered if Astor’s grandson hadn’t filed a complaint.
If you suspect a senior is being financially abused, report the situation to the proper authorities, who can then make a decision about whether or not to investigate. Every state has at least one toll-free number—either an elder abuse hotline or an elder abuse helpline—to call to when elder abuse is suspected.
Some states, such as California, have an Elder Abuse Act to provide remedies for elders who’ve been financially abused.