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Elder
Alerts
On Preventing Elder Abuse Every senior citizen deserves to be treated with dignity and respect, but the incidence of physical and emotional abuse is on the rise. Sadly, the most common form of abuse is physical in nature and includes hitting, shoving, or kicking. Less obvious, but similarly devastating, are verbal and psychological abuse; financial abuse; threats of harm; deprivation of food, water, medications, or clothing; and neglect or abandonment. Senior Adults Legal Assistance (SALA) has offered free legal services to elders in Santa Clara County since 1973. Recently, SALA reported that 40% of its work load relates to elder abuse cases occurring throughout the community. Such cases occur without regard to gender, economic status, or ethnicity. The perpetrator is most often a relative living in the victim's home, and drug or alcohol abuse is frequently a factor. Tenants to whom a senior citizen is renting a room in order to make ends meet can also be offenders, as can paid caregivers. In family-oriented cases, SALA must often obtain Domestic Violence Restraining Orders to remove abusive relatives from an elder's home. Abusive tenants or caregivers can be removed by means of an Elder Abuse Protective Order. Many senior citizens have become so accustomed to the abuse that they are not even aware it exists. One example is the mentally ill son who moves in with his elderly mother and father and then refuses to take his medicine, verbally abusing either or both parents and sometimes breaking furniture. The parents, whose health is being impaired by the fear their son engenders in them, may not recognize either the presence of abuse or the need to remove their son from the home. Even law enforcement agencies are not always able to correctly identify elder abuse. A case in point is the tenant who keeps parking in his elderly landlord's parking place. When asked to move his car, the tenant throws a coffee cup at the elder's windshield and breaks it, threatening to do comparable damage to the elder himself. Police, once called, label the incident a landlord/tenant issue rather than elder abuse, informing the elderly couple that an eviction process will be necessary to rid themselves of their troublesome tenant. There are criminal and civil laws to protect the elderly from abuse. When immediate danger exists, call 911. To evaluate a complaint, contact Adult Protective Services (408-928-4024) and call SALA (408-295-5991) to get help with restraining orders. For investigation of abuse in long term care facilities, phone the LTC Ombudsman (800-231-4024). back to top The latest in a series of scams exploiting the confusion over the Medicare Part D drug benefit has elicited a warning from the California Health Advocates' Senior Medical Patrol Project. This particular scam has been named the $299 scam because Medicare beneficiaries are charged this amount as a "one-time fee" to maintain phony coverage. A variation on the scam is to offer advice on making drug plan decisions for an added cost. Potential victims are approached at bus stops, senior centers, shopping venues, parking lots and so forth. Telemarketing is another means used by these high pressure scammers. Their goal is to obtain Medicare numbers and other sensitive data from their intended prey. Consumers should exercise caution in dealing with companies offering Medicare drug coverage, and violation of the following rules of thumb should be considered a red flag:
back to top E-Mail Scam about Tax Refunds The Internal Revenue Service has issued a scam alert relating to bogus email messages to taxpayers informing them of a supposed tax refund. The official-looking email, which comes from tax-refunds.irs.gov, claims to be from the IRS and directs the consumer to a link requesting a Social Security number and credit card data for "verification." According to a release warning citizens of the scam, the IRS never will ask for personal identifying or financial information via unsolicited email. Neither do taxpayers have to fill out a special form to obtain a refund. We urge you never to respond to an email asking you to click through a link in the message to enter sensitive information on a web page. If in doubt, call the merchant or agency (but not using any telephone number given in the suspicious message) to determine whether they are trying to contact you. Insurance Fraud A consumer protection lawsuit has been filed in San Francisco Superior Court against five companies accused of victimizing seniors by selling annuities under the pretext of providing estate planning services. These organizations are American Equity Investment Life Insurance Company, based in Iowa; American Investment Life Insurance Company, based in Kansas; AmeriEstate Legal Plan, Inc., based in Irvine, California; Estate Preservation, Inc., based in El Segundo, California; and Gentry Group, Inc., based in Texas. The charges are elder abuse, false advertising, violating California's Unfair Business Practices law by selling annuities with severe tax penalties, exorbitant surrender charges, and long maturation dates to senior citizens. Jenefer Duane, CEO and Executive Director of Elder Financial Protection Network (EFPN), warns: "The estate planning seminar you are thinking of attending may be a front for an annuity sales pitch. Never get rushed into a financial decision. Do not sign your savings over to an estate planner without first getting independent advice." Seniors are often lured to estate planning seminars by newspaper ads promising free advice or presented as community service events. In the past, some of these programs have even been presented at and sponsored by a local church. Exercise caution; do not be fooled by greedy scam artists. Remember, if it sounds too good to be true, it probably is! back to top Medi-Cal Fraud An 80-year-old couple was scammed by a group called "Brooks Bridges Warburton LLC." This outfit advertised in area hospitals about how to protect an estate from the costs of nursing home care. When the husband and wife contacted the group, an agent visited their home and promised that he would invest $125,000.00 of their money in a Family Limited Partnership (FLP) and get them qualified for Medi-Cal. Surprisingly, the couple did get qualified for Medi-Cal, but they received no copies of the documents they had signed. (The copies were "lost in the mail.") The elderly man died several months later. His son called the firm to find out where the money was. Suddenly, no one could be contacted at the place of business. Canceled checks showed that the $125,000.00 went to the "Guardian Income Fund." The only listing found was in New Zealand, and the telephone had been disconnected. What’s more, the company’s status was revoked as of April 2003. Sadly, recovery of these funds seems unlikely. If anyone approaches you with the idea that it will take tens of thousands of dollars to qualify you for Medi-Cal, run (don’t walk!) in the other direction. Even when a scam artist is finished taking your money, you may still not be qualified. Conversely, an experienced elder law attorney can assist you in determining whether you legitimately qualify for Medi-Cal. Of course, we will be happy to answer any questions you might have in that regard. (And do consider attending our Elder Law seminar on November 10th!) back to top Indentity Theft Revisited Several years ago a Laguna Niguel attorney, Mari Frank, was a victim of identity theft. Her previously spotless credit record was all but destroyed, and it took over 500 hours of her time and $10,000 to rectify it. Thanks to Ms. Frank's perseverence, her victimizer was finally prosecuted. However, because identity theft per se was not a crime at the time, the guilty party was sentenced to work furlough without jail time. Incensed by the injustice of this decision, Ms. Frank set out to change the system, becoming an advocate for those impacted by identity theft. Fortunately, her advocacy was successful, and more protections exist for consumers. In 1998, California and Federal laws were passed making identity theft a crime, with the individual (and not the organization extending credit) named as the victim. California police must now take crime reports in the victim's community, and any consumer may place a "security freeze" on his credit file. The public display of social security numbers is illegal in our state, and victims have the right to obtain any fraudulent papers used to get credit. Businesses must also advise consumers of security breaches exposing their personal data. back to top Internet Fraud Alert Isn't it exciting? You are a lucky lottery winner, and the only thing the generous lottery coordinator requires, by return e-mail, is your bank information so the winning check can be deposited to the account of your choice. Sounds too good to be true, doesn't it? And yet many are duped every day by such tricks of the con artist's trade. Have you been on the receiving end of a supposed e-mail from SunTrust, Washington Mutual, Wells Fargo or some other bank, asking you to follow the so-called "link" to confirm all of your banking information, due to the "increasing number of identity thefts targeting their customers"? Don't even think of complying with such a request! (Unless you would like to become one of their unfortunate victims, that is.) And what about the wonderful Christian woman or man who is dying any day now and wants to make a substantial bequest to you or your equally devout organization? Surely an e-mail peppered with scriptures and references to deity has to be on the level, right? Think again! Using religion to disarm potential victims is a favorite device of fraud perpetrators. Don't be fooled; be wary. back to top CitiBank Customer Scam An authentic-looking email arrives stating that identity theft has become a serious problem at CitiBank and asking you to confirm your banking details in order to "safeguard your account." There is even what appears to be an official "link" to the CitiBank web site where you should go to reveal this "mandatory" information. Be wary. Do not comply with this fraud. back to top Phony Interhitance Scams Beware of all-too-helpful emails from those claiming to "represent" banks in South Africa, China, and various European countries. These individuals claim to be aware of a large bank account that no one else knows about, whose owner has died unexpectedly. Of course, no heirs can be found, so the writer wants you to pose as an heir in order to split the funds between you. Naturally, you will need to supply your bank account and other personal information. Another variation is that a philanthropist with a large bank account has died and wants to "support your ministry and help to the less-privileged." Again, you must forward personal data so they can file probate documents to release the supposed bequest. Does it sound too good to be true? If so, it is. back to top California Nursing Homes Fail Inspections Sacramento, CA - January 30, 2004 - Surprise inspections of 150 California nursing homes revealed that many facilities did not meet minimum state health and safety standards. Problems included run-down living areas, fire safety violations, loose hand rails, pest infestations, improper food handling, and bad odors from urine and feces. 132 of the nursing homes had patient care violations such as over-medication, unreported elder abuse cases, preventable injuries, and failure to help disabled residents with personal hygiene. Over two-thirds of the nursing homes failed to provide each resident with the required 3.2 hours of care a day. Studies cite inadequate staffing as a major cause of nursing home abuse. For example, residents of nursing homes falling below minimal staffing standards are much more likely to develop serious bed sores and excess weight loss than those in other nursing homes. Operation Guardians, a task force led by the California Attorney General's office, conducted these inspections over a two-year period to address concerns about California nursing home care. One source of motivation was a 2000 report by the United States Congress Committee on Government Reform showing that only 18 of 288 San Francisco Bay Area nursing homes were in substantial compliance with federal care standards. How can you be certain the nursing home you and your loved ones utilize is adequate? Medicare's nursing home database (www.medicare.gov/NHCompare/Home.asp) offers details about each facility, including the number of beds, health condition of the residents, use of physical restraints, staff size and working hours, and violations found during inspections. A personal visit should also be conducted, where you can see for yourself whether residents are treated with dignity and respect, as well as provided with pleasant activities, good meals, and a caring staff. If you have a question about the legal rights of your elderly relative in a nursing home, please feel free to contact our offices. back to top Prescription Drug Card Discount cards with the Medicare-approved mark will be available by June 2004 for immediate prescription drug savings. Medicare will contract with private companies to offer new, voluntary discount cards which will offer a discount off the full retail price of prescriptions. Projected savings are 10-25% or more on many drugs. Those with incomes less than $12,124 a year or married couples with incomes less than $16,363 may qualify for an additional $600 to help pay for prescription drug costs. These optional cards are being offered temporarily with enrollment beginning as early as May 2004 and continuing through December 31, 2005. (People whose drugs are covered by Medicaid are not eligible.) If all goes as planned, the Prescription Drug Benefit will be added to Medicare in 2006. All Medicare recipients will be able to enroll in plans that cover prescription drugs. Qualified people will pay a premium estimated to be $35 a month, with a $250 deductible. Medicare will pay 75% of drug costs between the deductible and $2,250. Beneficiaries will pay for drug costs between $2,250 and $5,100, and Medicare will pay 95% of the drug costs above $5,100. The Prescription Drug Benefit plan includes extra assistance for those with low income and limited assets. People who qualify for Medicare and Medicaid, with incomes below 100% of the federal poverty level (and with no separate asset test) will receive full premium subsidy, full subsidy of the deductible, and minimal co-pays. Other beneficiaries with low income and limited assets will receive premium and deductible assistance and limited cost-sharing. If you are interested in obtaining a Medicare-Approved Drug Discount Card, visit the official Government web site for people on Medicare, www.medicare.gov/maddc/home.asp,use their new tool, and see if you qualify. back to top We spend a lot of time covering the topic of Elder Fraud, and our ongoing concern is a direct result of the size and severity of this problem in our society. Did you know that identity theft of the elderly went up over 200% between 2000 and 2001 and continues to rise each year? Are you aware that 25% of the elder fraud cases prosecuted involve perpetrators who are complete strangers to their aging victims? These criminals are responsible for telemarketing scams, home repair scams, annuity scams, e-mail scams, sweetheart scams, and more. In fact, there appears to be no limit to their cunning and corruption. Identifying these and other scams can be difficult, and the elderly are particularly vulnerable. After all, con artists are by definition persuasive, and they are usually quite skilled at what they do. While pretending to be concerned and well-meaning, they prey upon emotions and manipulate their prey into making decisions which are not in their best interest. Fortunately, most fraudulent schemes do utilize some rather predictable gimmicks which can help a potential victim identify them in advance and avoid being duped. They are as follows:
There are also seven warning flags family members can watch for which might indicate their elderly relative is being defrauded: 1. Frequent calls during family visits from callers offering money-making opportunities or seeking donations. In the event you suspect your elderly relative is being taken advantage of by an unscrupulous scam artist, show empathy rather than blame. Let your loved one know he is not alone in being fooled by these individuals, and help him find ways to protect himself. Underscore the criminal nature of elder fraud, and explain the swindler's true motivation. Suggest a change of phone number, and use "do not solicit" lists where available. Remember, forewarned is forearmed, and you can empower your elder to protect himself against the growing epidemic of elder fraud. back to topLiving
Trust Mills Scam
Tips More on Trust Mills
If you have a complaint against a company, have been defrauded, or have been contacted by someone claiming to be the successor of the Alliance for Mature Americans, please write to the Office of the Attorney General, Public Inquiry Unit, PO Box 944255, Sacramento, CA 94244. back to topTrust
Mills Financial
Scams Too good to be true Targeting seniors with a fraudulent offer is The Pappas Group, offering 12-16% return on a "100% secured promissory note program secured by gold." This is not a valid investment opportunity; it is a scam. Of great concern to the Legislature are abuses concerning the sales of financial products to the elderly, including annuities, Medicare supplement insurance, and long-term care insurance. Unscrupulous con artists convince people to buy annuities and other insurance products, promising those products will avoid estate taxes and facilitate the Medi-Cal qualification procedure. Many scams operate as follows: "Free" seminars are sponsored to tell attendees how to avoid estate taxes. The operators begin by selling estate planning services. Under that guise, they also peddle financial products such as annuities and life insurance policies in an attempt to earn commissions, often undisclosed. The danger is that these operators are not estate planning professionals but salesmen, who sell these products to people with little regard for whether they will be helped or harmed. In an effort to assist and warn the public regarding estate planning scams and sales of unnecessary financial products, the California State Bar has established a phone number (1-888-460-SENIORS) where the public can ask advice or report a scam. In addition, the State Bar has made a video entitled "Taking Charge." This video includes stories from three California families who suffered at the hands of these con artists. The stories and tips given will help you recognize the warning signs of an estate planning scam before it is too late. This 20-minute video is available in our office for anyone who would like to borrow it. We urge clients with existing estate plans to be aware that even you can be victimized, though hopefully you would recognize some of the warning signs and call us for advice before signing anything! It is also prudent to alert family members and friends to these scams so they do not fall victim, and we encourage you to borrow the video and share it with them at your convenience. Additionally, we are making the video available to various senior organizations in our area so they can educate their members regarding the hazards lurking out there. Please contact Charlene in our office and make arrangements to view the video or show it to an interested group. back to top Identity
theft Elder
Law Fraud Elder
Law/Medi-Cal Update |
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