Elder Fraud Issue In Denver

usdoj.gov, May 24, 2006

Elder Fraud Issue In Denver

In the City and County of Denver, Colorado, alone, older adults have lost and continue to lose millions of dollars each year to financial exploitation and fraud. In two recent criminal cases filed by the Denver District Attorney's Economic Crime Unit, elderly victims lost more than $20 million. In People of Colorado v. Hoover, the victims' investment advisor was convicted of stealing $17 million in life savings. In People of Colorado v. Linville, elderly victims and the estates of deceased people lost more than $3.5 million through theft by their probate attorney.

According to many who work with victims at the Denver District Attorney's Office, older financial crime victims can experience severe emotional trauma. Hoover's victims reported that their victimization caused them extreme financial devastation and even bankruptcy in some cases. Many victims needed counseling for severe depression and societal anger and alienation.

Victimization of the elderly is especially devastating. Unlike younger victims, elderly victims find it difficult to recoup their losses by returning to the workforce. Although restitution was ordered in the Hoover and Linville cases, both defendants were sentenced to lengthy prison sentences (Hoover to 100 years and Linville to 41 years), so the victims will never be repaid. Some of Hoover's victims, who are in their 70s and 80s, have had to go back to work at low-paying jobs or take in work at home (an 83-year-old victim knits scarves for sale) just to pay living expenses.

Losing life savings may have long-term physical and emotional consequences including the loss of access to adequate food and housing, health care, in-home care, and ultimately, an independent lifestyle and secure retirement. Hoover victimized a couple in their 80s who are both cancer survivors. With the theft of their life savings, they were forced to refinance their mortgage-free home to pay for their prescription drugs. The couple has given up driving their car and instead ride the bus to save money.