Don't Join This Club...Thousands Have, and Lost Everything

Don't Join This Club...Thousands Have, and Lost Everything 
MedioCom 
©2002 by Debora Hill

On March 6, 2000, Stephen and Chyril Rougeau were arrested for bilking a 94-year old woman out of her life savings. The Rougeau's were the woman's live-in care-takers. According to Santa Clara, California Deputy District Attorney Cindy Seeley, this case is typical of elder fraud -- the victim is too dependent on the caregiver to report abuse. Seeley estimates only one in 14 cases of elder fraud are reported to authorities. 
When the stepson of a woman in Portland, Oregon contacted Elder Crimes Detective Mitchell A. Copp with the information that his stepmother had written thousands of dollars in personal checks to a man unknown to them, it led to the arrest and conviction of Marvin Norby. Norby received over $90,000 from Mrs. Older, for a share in property he said he had inherited. There was no property, and at trial Norby tried to claim the money was a gift. Copp's suggestion regarding Elderly Fraud? 
"I believe that education/prevention is a necessary component. Federal funds should be spent not only to educate the elderly regarding these types of crimes, but also geared toward the elderly person's sons and daughters who are often living out of the area and unaware of the nature of this type of victimization." 
In October of 1999 Long Beach, California police arrested Darlene Miller, Cedric Goodson and Debrah Williams and charged them with presenting false financial statements and criminal conspiracy. Miller posed as a State of California Loan Processor and offered to complete home repairs and perform bill consolidation services in exchange for cash. The suspects targeted Social Security recipients and solicited other names to contact. The Long Beach Police believe this is a far-reaching scam and are still searching for victims. If you suspect a parent, relative or friend has been a victim of this crime, contact the Department's Public Information Officer at 562/570-7215. Their website is: www.longbeachpd.org. 
The statistics are grim
The AARP, Georgia's Office of Consumer Affairs and the Georgia Consumer Fraud Task Force have formed Operation Strike Back, utilizing 120 AARP volunteers who contacted the victims of a Georgia=based telemarketing fraud operation. Operation Strike Back is now being formed in other states, in an attempt to contact potential victims of elderly fraud. The U.S. Department of Justice estimates that one out of six consumers is cheated by telemarketing scams every year. An investigation by the F.B.I. discovered that 80% fraudulent telemarketing schemes were directed to older consumers. Congress estimates that American consumers lose over $40 billion a year to telemarketing scams. According to the AARP, that amount would pay for nursing home care for over one million patients a year. 
The Worst Scam of All 
There are many elderly fraud schemes, but one of greatest concern at this time involves 'Predatory Lenders'; lenders that aggressively promote their services to those with limited financial resources, particularly the elderly. What generally happens is that a retired person needs money for medical bills or home repairs, and accepts a loan with inflated interest rates, outrageous fees and unaffordable repayment terms (particularly balloon payments); this often results in the loss of the home. 
The Community Reinvestment Association of North Carolina offers a handbook which is available online, that explains predatory loans and how to avoid them. To get a copy, go to their website at www.aarp.org/confacts/money/predlend.html. The Federal Trade Commission maintains a website with warnings about home equity scams. Their website is: www.ftc.gov/bcp/conline/pubs/alets/eqtyairt.htm. 
The National Center for Home Equity answers questions about reverse mortgages. Many elderly victims have lost their homes before death, when reverse mortgages didn't live up to their promise of life-long support. And the National Consumer Law Center gives detailed information on how to spot home loan scams at: www.consumerlaw.org/consumer/forclose.html. 
For Assistance Call...
The Office for Victims of Crime in Washington, D.C. investigates fraud cases and provides Federal funds to support victim assistance and compensation programs around the country. This government agency administers grants for programs designed to benefit victims, provides training for diverse professionals who work with victims, develops projects to enhance victims' rights and services, and undertakes public education and awareness activities on behalf of crime victims. Their list of organizations that can help elderly fraud victims is three pages long, so the best thing to do if you suspect your parents or loved ones have been victims of fraud is to call their office: 1/800/627-6872. For an e-mail copy of their list send a message to: ASKOVC@ojp.usdoj.gov. Their website is: www.ncjrs.org. 
Resources Used in Story: 
The Long Beach Police Department : 562/570-7215. www.longbeachpd.org 
The Community Reinvestment Association of North Carolina: www.aarp.org/confacts/money/predlend.html. 
The Federal Trade Commission: www.ftc.gov/bcp/conline/pubs/alets/eqtyairt.htm. 
The National Center for Home Equity: www.reverse.org. 
National Consumer Law Center: www.consumerlaw.org/consumer/forclose.html. 
The Office for Victims of Crime: www.ncjrs.org; 1/800/627-6872. 
American Association of Retired Persons: www.aarp.org, 202/424-3410 
The National Fraud Information Center: www.fraud.org/info; 1/800/876-7060