Crimes Against Seniors 2

What people may not know is that Reusser testified about financial exploitation during the 2003 Legislature.

The bill about which he testified, HB 2449, was subsequently passed and signed into law by Gov. Ted Kulongoski.

It amended the state Elderly and Disabled Person Abuse Prevention Act to increase the amount that potentially can be recovered from a perpetrator of fraud. A victim of financial abuse may sue for and receive three times the amount of damages they suffered.

Unfortunately, because Reusser was the victim of a fraud that occurred prior to the passage of this law, he cannot benefit from it.

The Reussers' tragic situation illustrates the importance to all seniors of being extremely careful when they entrust the care of their financial assets to someone else.

Never give information about yourself to someone who calls you on the telephone and asks for information even if they say they have this information already and just want you to confirm it.

If they had the information already, they wouldn't need to call you. If you reveal the information to them, they will use it to defraud you.

Be especially wary of "financial advisers" you meet at church, civic or social organizations. Financial predators join these groups so that they can find potential victims.

Find a financial advisor through people you already know and trust, and who have been well served by this advisor over a long period of time.

Don't choose a financial advisor just because they sent you advertising or an e-mail. This potential advisor should be available to you in person, not just on the telephone. If you feel good about a person, fine. But if they make you feel intimidated or anxious, find someone else.

The potential advisor should be a member of a firm that participates in the SIPC, the Securities Investor Protection Corporation, which insures investment accounts in the same way the FDIC insures bank accounts.

If they cannot provide you this assurance, your assets will be at great risk with this person. Check their firm out at the federal website:

If the advisor is a member of the National Association of Securities Dealers, check the individual out at http://pdpi.nasdr.com/pdpi/.

If you rely upon a financial advisor to manage investments or pay bills, check your bank and other financial statements.

All transactions should make sense and be consistent with your wishes. Always be an active participant in your finances.

Many believe the cost of a fully qualified and bonded financial advisor is high, but the loss of the majority of an estate by theft is much more devastating.

Although the Reussers were the victims of an unscrupulous financial advisor, many other elders have been victimized by friends or families.

The same rules that apply to financial advisors apply to family or friends who want to manage your assets. Stay involved and ask for explanations about what is happening with your money.

Finally, remember that financial exploitation is a crime. If you suspect that you or someone you know is possibly a victim, consider these actions:

Contact an attorney to discuss your concerns. If theft has occurred, it is possible to recover assets if you act promptly. Ask your attorney if the provisions of ORS 124.100, which covers civil actions for abuse of elderly or incapacitated persons, apply in your case.

If you suspect a crime has been committed, contact your local law enforcement agency or call the Washington County Disability Aging and Veteran Services office at 503-640-3489 and ask to speak to an Adult Protective Services worker.

Kent Burtner is public information officer for Washington County Disability, Aging and Veteran Services.

* Average self-reported credit card debt among seniors age 65 and over increased 89% to $4,041, between 1992 and 2001.

* Seniors between 65 and 69, presumably the newly retired, reported a staggering 217% increase in credit card debt to $5,884 over the same period.

* Credit card debt among "Transitioners," those aged 55-64, jumped 47% to $4,088 over the last decade. In fact, the average credit-card indebted

* family in this age group spends nearly one-third (31%) of its income on debt payments.

The report's findings put into stark relief the trouble ordinary older Americans are having at making ends meet in this economy. Over the last two decades, retirement wealth (pensions and social security) has fallen for all but the wealthiest seniors. Also, the value of savings-based sources of income -- savings accounts, CDs and other conservative investments favored by seniors -- has steadily declined. By 2001, more than one-third of seniors were depending on Social Security for over 90% of their income.

Tamara Draut, co-author of the report and Director of the Economic Opportunity Program at Demos, explained: "As older Americans face shrinking income and savings, just one unexpected expense -- an illness, hospitalization, or even a repair to an aging home -- can start a vicious cycle of debt. Seniors are turning in droves to credit cards as a safety net, but high interest rates and fees are trapping many into a nearly inescapable web of debt."

Added Sharon Hermanson, senior policy advisor at the AARP's public policy institute: "The findings in the Demos report dispel the myth that seniors are immune to the consumer debt problems faced by the rest of the population. In fact, older Americans are proving to be even more susceptible because their incomes continue to erode at the same time that their health care and housing costs increase. This is a national issue of deep importance."

According to the report, deregulation of the credit card industry has allowed companies to take advantage of tough economic times. As the report documents, credit card interest rates now routinely top 20%, penalty fees are at record highs, and "low, introductory" rates can be jacked up to 29% if a cardholder misses one payment by as little as one hour. Usurious practices encouraged by this "no-holds barred" climate help credit cards remain one of the banking industry's most profitable sectors.

As the economic insecurity of both middle- and low-income seniors has grown acute, the need for changes in policy -- and industry lending practices -- has become essential and immediate. Among the report's recommendations:

* Enact a National Usury Cap that would be floating and indexed to a Federal Rate. This step would enable lenders to continue using "tiered pricing" based on customers' risk profiles, but put an end to interest rates of 20 and 30% above prime, which are unjustifiable by any measure.

* Demand Better Disclosure and More Reasonable Grace Periods by credit card companies. Consumers deserve straight-forward answers to basic

questions about card policies, as well as an end to the "gotcha" penalties that raise interest rates to 29% or higher if a payment arrives after 1 or 2 pm on a given due date.

* Stamp Out Predatory Lending practices of brokers and lenders, which often ensnare desperate, elderly consumers through costly sub-prime home financing products. Congress must take action soon and resist industry pressure to preempt state laws with more lax Federal legislation.

* Maintain Existing Bankruptcy Laws so that elderly Americans do not face even greater obstacles to financial recovery. Sadly, the bankruptcy reform bills that Congress has been considering for the last five years would all do just that.

Two-thirds of his bank account was gone, he was the owner of a new van he knew nothing about -- as well as a Karaoke machine, TV sets and a camcorder -- and somebody had signed a will leaving most of his assets to his caregivers, records show.

A six-month state investigation has led to charges against the Rockford woman who owned the home and two live-in caregivers, state police said. They are accused of embezzling $48,000 from the man since 2002.

The home had been licensed since 1997 to care for up to 10 developmentally disabled, mentally ill and elderly adults, though it appeared only two residents were living there, state records show.

The owner of the home, Julie Humphrey, 47, of Rockford, and the caregivers -- Thomas Redzinski, 39, and his wife, Christina Redzinski, 26, both of Six Lakes -- were charged in Montcalm County District Court with embezzlement from a vulnerable adult.

If convicted, they face up to 10 years in prison or fines of up to triple the amount allegedly embezzled.

State police Detective Sally Wolters started investigating the home in late August after workers at the state's Family Independence Agency discovered the alleged embezzlement, police said.

Troopers said the three gained access to the man's bank account. "They would have him sign the papers, sign the checks," said Sgt. Mike Minnis. "He had no relatives that we know of."

A 17-page report on file at the state Department of Consumer &Industry Services in Lansing describes what investigators found.

The state's investigation began after the man was admitted to Sheridan Community Hospital in June 2003 with bed sores and dirt caked in his ears. A witness "described Resident A as uncommunicative except for 'yes' and 'no' answers, unable to feed himself and lying in a fetal position," the CIS report states.

Within four weeks at the hospital, the bed sores cleared up, and he told witnesses he wanted nothing to do with the caregivers at the foster care home, according to the report.

The man moved into the home in 1999 and was paying $1,200 a month until June 2002 -- when the rate was doubled. State investigators said they found nothing in writing allowing the home to charge him $2,400 a month.

The man told investigators he didn't know he owned a 2000 Chevrolet van, purchased under his name in June 2002, and that he was paying for car insurance. In about a year, somebody put nearly 23,000 miles on the van -- even though the man rarely got out, state officials said.

"Resident A did not recall traveling in the new van he was told he had purchased," an investigator wrote.

In the man's file at the foster care home, investigators also found his will, la which left 85 percent of his assets to the caregivers.

The signature was not his, and somebody had misspelled his middle name, he told investigators.

"Resident A was also not aware of the purchase of $1,366.43 of home interiors and gifts supplies, 2 new color TVs and VCRs, a camcorder or Karaoke machine," the report states.

One of the caregivers told investigators he was paying bills for the man because the victim's Parkinson's disease was so advanced that he couldn't write checks on his own.

"Resident A stated that he was always signing papers for (the caregivers)," the investigator wrote. "He did not understand sometimes what they were having him sign papers for."

From May 2002 to August 2003, the man's bank account had shrunk from $94,715 to $36,342, state records show.

Investigators said they also found a filthy home -- a living room ceiling collapsed and sagging, bags of garbage blocking the front door, kitchen countertops so cluttered they were barely visible, floors strewn with papers and toys and small insects buzzing around.

Humphrey, the owner, agreed to surrender her foster care license and closed the home in September 2003

STOCK TIPS SCAM ALERT

The Securities and Exchange Commission (SEC) recently issued an investor alert to warn Americans about a new scam sweeping the country -- answering machine "wrong number" stock tips. The following information is an excerpt from the SEC press release:

Voice mail messages are appearing on home answering machines from coast to coast saying that the stock price of certain small, thinly traded companies will soon shoot up. The breezy, intimate messages sound as if a female caller mistakenly believes she has dialed a girlfriend and is confiding inside information she has learned from "that hot stock exchange guy I'm dating." Regulators believe these voice mails are part of a "pump and dump" stock manipulation scheme, whereby the people behind the messages intend to profit by driving up the price of their targeted stocks, then selling, and leaving victims with losses. The SEC has received hundreds of complaints from investors across the country about these misdirected voice mails in recent days.

"Investors should never buy stocks on the basis of 'hot' tips from strangers," said SEC Investor Education Director Susan Wyderko. "We are concerned because the stock prices of companies mentioned in these calls have gone up, presumably as people listen to the messages and buy. But in all 'pump and dump' schemes, as soon as the promoter stops touting a stock, the price plummets and other investors lose their money."

To learn more, visit: http://www.sec.gov/investor/pubs/wrongnumberscam.htm

How to Protect Yourself from Financial Exploitation 09/15/04

Always get several estimates for any major work. Don't be pressured into accepting a one-day only offer. Never pay for work in advance. Withhold full payment until the work is completed and pay with a check, not cash. Always get references for a contractor and check their record with the Better Business Bureau and county licensing agencies. Get a written contract (and make sure you fully understand it) for the work to be performed.

Ask the Michigan State Department of Labor and Economic Growth if the contractor has had any complaints made against them. If they are not licensed, and you pay for faulty work, you have no protections.

Keep valuables under lock and key or on your own person at all times. Screen applicants thoroughly, regularly monitor medications and bank accounts and keep an eye on attendants. I possible, sign your own checks and have groceries and prescriptions delivered.

Don't believe everything you read or hear, no matter where you read it or who tells you!

Not only do we have to protect ourselves against Identity Theft, we now have have to protect ourselves from those who offer to protect us from it.

People have been calling unsuspecting senior citizens and claiming they'll help protect them from identity theft, but in the end the callers are draining people's bank accounts.

The scammers call and claim their business can protect the victim from people trying to take their identity. The caller will ask for critical bank account and identity information. Sometimes the caller claims the victim's account has already been compromised. The caller says that they can stop that current theft for a service fee. Once the criminal gets access to the victim's account the victim could lose hundreds of dollars.

It is suggested you be very careful.. Even when an offer for identity theft protection is offered through your bank or credit union, is this really a good investment for you? In most cases, by following sound practices, you can protect yourself against losses from identity theft.

For more information on Identity Theft, and links to other sites and news stories, go to Identity Theft

SOUTH BEND, Ind. -- Three Indiana State Prison inmates and 17 other people have been charged and accused of taking part in an identity theft scheme that targeted elderly widows and widowers, authorities said Monday.

U.S. Attorney Joseph S. Van Bokkelen and St. Joseph County Prosecutor Michael Dvorak announced the filing of federal and state identity theft charges against the 20 suspects.

The scam involved telephone calls in which the victims were told they would receive help in re-establishing credit upon the death of their spouse, authorities said. The victims provided credit and other information that then was used to add others as authorized users on their credit cards.

"They had very good credit, so it is easy to escalate getting credit limits exceeding $20,000," said Assistant U.S. Attorney Toi Houston. "Then these individuals, after they got their initial cash advances, from $2,500 to $10,000, would then give the credit card to the people they recruited to go to retail establishments and within a three-day period, they would rack up close to $5,000 in retail purchases."

Postal authorities said about 30 people and 13 credit card companies were victimized; losses totaled about $115,000.

Most of the victims were from Indiana or Illinois, but some victims were from Ohio, Iowa, Kentucky, Florida, California and New York.

Among those charged were Telly Gant, 29; Robert Smith, 30; and Melvin Fagan, 34. The three were inmates at the State Prison in Michigan City between January 2002 and June 2003, when authorities said the scam took place.

Authorities say the inmates recruited others outside the prison to assist in the scheme.

Telemarketing scam confuses the issue