If you have elderly friends or relatives or if you're getting on in years yourself, please take note.
PHILADELPHIA, Oct. 28 /PRNewswire/ -- Attorney General Jerry Pappert today filed a civil lawsuit in Commonwealth Court accusing 16 defendants of engaging in an elaborate statewide living trust sales scheme, that deceived older Pennsylvanians into purchasing Revocable Living Trusts, long-term annuities or charitable gift annuities that were costly, not in their best interest and/or unnecessary. The alleged victims documented approximate losses that range between $1,800 and $80,000.
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"This alleged scheme was heavily promoted and potentially hurt hundreds of senior citizens across the Commonwealth who may be unaware that they were cheated," Pappert said. "Today, I'm asking the court to ban the defendants from engaging in the illegal advertising, promotion and sale of estate planning products or services in Pennsylvania."
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According to investigators, defendants Bohmueller and Weinstein between 2001 and 2004 promoted their estate planning services using telemarketing, newspaper ads, mass mailings, senior expos and local seminars held in restaurants, country clubs, synagogues or other facilities throughout the state. The attorneys used sales agents from the marketing, insurance or brokerage firms to sell the estate planning products. The sales efforts were primarily focused on consumers located in Central, Northeastern and Southeastern Pennsylvania. Those responding to the ads or promotions were typically senior citizens often 70 to 80 years old.
One of the defendants is New Life Corporation of America, d/b/a National Community Foundation. It seems New Life has had some previous problems abiding by the law in Maine, for example, and in Washington, among other places. But you wouldn't know this from visiting their very slick website (targeting seniors) or even from checking with Charity Navigator (although their very low rating may give pause).
We can rest easier in Pennsylvania tonight. But a word to the wise: these predators are out there. They often mix legitimate business practices with illegal and deceptive schemes. They're very aggressive and very glib and very shrewd and they want to take your hard-earned life savings away from you. There are many law-abiding, highly qualified estate planners who truly do have your best interests at heart. But be careful. Be very careful.
Shabbat Shalom.
