By Brendan Ford, Esq.
Financial scams involving the elderly are on the rise. According to the FBI, in 2022, there were 88,262 complaints of fraud from people aged 60+, resulting in $3.1 billion in losses. This was a shocking 82.35% increase in losses compared to 2021.
Recently, an 80+-year-old Marine Corps widow fell victim to one of these scams and nearly lost her home. Fortunately, her house was saved through the efforts of Ford & Diulio PC (F&D) and Veterans Legal Institute (VLI).
The client is an elderly widow of a Marine Corps Vietnam veteran who died from cancer caused by Agent Orange exposure. She lives in a modest home in Southern California that she and her late husband bought over 40 years ago. She lives on a fixed income, primarily from Social Security retirement and VA survivor benefits. This income was sufficient to meet her monthly expenses until she fell victim to a scam – one that led to massive property tax increases, liens, and the potential loss of her home.
The Scam
In 2018, the client was standing outside her home when she was approached by two sales representatives from a local contractor (“sales representatives”) who wanted to talk to her about a government program that helps owners make their homes more energy efficient and presented her with a brochure. The sales representatives enticed the client to invite them into her home by promising her a free garage door with a remote. Once inside her home, the sales representatives promised the client a free doggie door and lights in addition to the garage door. The sales representatives also attempted to induce the client to agree to renovate her front yard.
Initially, the client informed the sales representatives that she could not afford the renovations because she was retired and was receiving income from Social Security and her husband’s pension. The sales representatives became insistent and told her not to worry because the contractor could help finance the renovations that the government did not cover. The sales representatives left the client’s home.
A few days later, the sales representatives returned to the client’s home with a proposal outlining the costs of the front yard renovation. The sales representatives represented that the front yard renovations would cost her $9,000. The client tentatively agreed to renovate her front yard at the $9,000 price. However, the sales representatives indicated the cost would be $16,500 in the work order.
The next day, the client emailed the lender overseeing the government program, rescinding her agreement to the front yard renovations. The client also informed the lender that she could not afford the renovations.
The following day, a female sales representative from the contractor showed up at the client’s home and requested that she sign some documents for items she was “being charged for.” The female sales representative did not give the client an opportunity to read any of the electronic documents, ask questions, or review what items she was allegedly being charged for.
Over the next six months, sales representatives continued to make visits to the client’s home. During these visits, the sales representatives repeatedly insisted on making new renovations that the client did not want nor asked for. The client repeatedly informed the sales representatives that she could not afford the renovations they offered. However, the sales representatives insisted they could help the client finance renovations that the government program did not cover. Throughout all those visits, the sales representatives made the client believe she would only be responsible for paying the amounts she agreed to finance, and the purported government program would cover the rest. At no point in time did any of the sales representatives determine whether the client had the ability to pay for the renovations. On the contrary, the sales representatives were repeatedly reminded that the client could not afford the renovations.
Unbeknownst to the client, due to these renovations and the government program funding these renovations, a lien was placed on her home. In early 2020, the client learned that she had been a victim of a scam after she received her property tax bill. The client visited the taxing authority to ask why her tax bill was significantly higher than in previous years. During her visit, the client was advised that she needed to contact the lender. The client contacted the lender on several occasions and informed them that she could not afford to pay and had been scammed. Her pleas were ignored.
Help Is on the Way
Faced with the prospect of losing their home, the client sought help from VLI, a nonprofit law firm that provides pro bono legal assistance to low-income current and former service members to eradicate barriers to housing, healthcare, education, and employment and foster self-sufficiency.
VLI teamed up with Ford & Diulio PC, a Costa Mesa, California litigation firm with extensive experience in fraud cases, to represent the client on a pro bono basis. F&D and VLI sued the contractor, the lender, and the taxing authorities for financial elder abuse and fraud. After nearly three years of litigation, the matter was resolved in the client’s favor. The taxing authorities agreed to remove all past tax assessments, the lender agreed to remove the lien, and the client received a substantial cash payment.
Because of F&D and VLI’s efforts, the client can now live out her remaining years safely and securely in her home. To learn more about VLI and its work, visit vetslegal.org.
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