By Bill Dedman
Investigative Reporter, msnbc.com
NEW YORK — The nurses, doctors, hospital, attorney and accountant for the reclusive heiress Huguette Clark coerced or influenced her to give them more than $44 million in gifts, the executor of her estate claimed in a remarkable legal petition filed Tuesday in Manhattan. The executor asked the court to order all the money to be repaid.
The executor doesn't deny that Clark authorized nearly all of these gifts, relentlessly writing hundreds of checks in her own steady hand until her eyesight gave out at the age of 102.
The accusations were vigorously denied by Clark's attorney, whose representative said, "To suggest that these gifts were not from Mrs. Clark's generous heart is to denigrate the person who gave these gifts, as well as the recipients who cared for her with their love."
The most-favored object of Clark's generosity was her registered nurse, Hadassah Peri, an immigrant from the Philippines who had been randomly assigned in 1991 by a home healthcare agency. For 20 years Peri was the daytime private nurse, working 12-hour shifts, five or six days a week, taking care of Clark's health, her hygiene and her purchases of dolls at auctions. She was paid at an annual salary of $131,040. In addition, she and her family received $31 million in gifts, including the money to buy five homes, jewelry, dolls and a Stradivarius violin (though not Clark's best Stradivarius).
Another $6.3 million, including a $6 million painting by Manet, was given to Beth Israel Medical Center, which allowed Clark to live in the hospital although she was quite healthy for most of her last two decades.
Clark's two physicians and their families received gifts of $3.1 million.
The night nurse and her family got $1.1 million.
The accountant, $375,000.
The attorney, just $60,000 — in addition to $1,850,000 given after the terror attacks of Sept. 11, 2001, for a security system for the attorney's daughter's Israeli community on the West Bank.
All of these amounts were gifts on top of salaries.
If the judge in Surrogate's Court agrees with the executor, all will have to be repaid.
The legal petition filed late Tuesday afternoon, available here from msnbc.com, is an attempt to claw back into the estate millions that the executor claims was bled away by undue influence or fraud.
Update: On Wednesday the executor filed another petition, accusing Clark's attorney of malpractice and breaches of fiduciary duty, possibly opening the door for some of the claims to be covered by professional liability insurance policies. The executor asks the court to require the attorney and his law firm to return all legal fees paid by Clark from 1997 until her death.
Wednesday, May 30, 2012
Friday, May 25, 2012
Janna Dutton Lawsuit
I'm in a defamation lawsuit with this attorney, Devon Bank, Richard Block, Sally Griffin and Josh Mitzen. They say Ludwig is in it too but they're just saying that to bill his estate.
Anyway, I'm finally looking at the lawsuit because anyone sues for defamation wants publicity and I can't figure out why they want it so badly but I do know why I want it. So, that's my new mission - informing Law Schools and other legal blogs.
In any event, Janna keeps filing this document on Ludwig's property, how she gave the rights away to the trustees at Devon Bank. The only reason I can think of that she would continue to bring this is up is that the trustees threw out Ludwig's priceless family heirlooms - his photographs, old memorabilia, correspondence between his mother, sisters in Europe, his family, old and rare Polish Book collection, some in German - they threw out things that were priceless to Ludwig and had he known they would do that, he wouldn't have signed the document. Why would anyone give their cherished possessions to two bank trustees to toss in the trash?!
Janna didn't explain to Ludwig that she considered it garbage. So, before you hire this woman to write your will, make a list of everything. Inventory your entire house and designate it to someone because she'll toss it.
(One more thing, no. It's not the "Sally Griffin Lawsuit" - it's not Griffin v. Goldmann. Please stop asking.)
Anyway, I'm finally looking at the lawsuit because anyone sues for defamation wants publicity and I can't figure out why they want it so badly but I do know why I want it. So, that's my new mission - informing Law Schools and other legal blogs.
In any event, Janna keeps filing this document on Ludwig's property, how she gave the rights away to the trustees at Devon Bank. The only reason I can think of that she would continue to bring this is up is that the trustees threw out Ludwig's priceless family heirlooms - his photographs, old memorabilia, correspondence between his mother, sisters in Europe, his family, old and rare Polish Book collection, some in German - they threw out things that were priceless to Ludwig and had he known they would do that, he wouldn't have signed the document. Why would anyone give their cherished possessions to two bank trustees to toss in the trash?!
Janna didn't explain to Ludwig that she considered it garbage. So, before you hire this woman to write your will, make a list of everything. Inventory your entire house and designate it to someone because she'll toss it.
(One more thing, no. It's not the "Sally Griffin Lawsuit" - it's not Griffin v. Goldmann. Please stop asking.)
Wednesday, May 23, 2012
Consumer Fraud Protection Bureau
Link is here. If you'd like to submit a complaint, it's here. I just heard about this organization yesterday. It's relatively new, set up by Obama last year.
The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.
EDUCATE
An informed consumer is the first line of defense against abusive practices.
ENFORCE
Like a neighborhood cop on the beat, the CFPB supervises banks, credit unions, and other financial companies, and we will enforce Federal consumer financial laws.
STUDY
The consumer bureau gathers and analyzes available information to better understand consumers, financial services providers, and consumer financial markets.
Above all, this means ensuring that consumers get the information they need to make the financial decisions they believe are best for themselves and their families—that prices are clear up front, that risks are visible, and that nothing is buried in fine print. In a market that works, consumers should be able to make direct comparisons among products and no provider should be able to build, or feel pressure to build, a business model around unfair, deceptive, or abusive practices.
CORE FUNCTIONS
The consumer bureau is working to give consumers the information they need to understand the terms of their agreements with financial companies. We are working to make regulations and guidance as clear and streamlined as possible so providers of consumer financial products and services can follow the rules on their own.
Congress established the CFPB to protect consumers by carrying out Federal consumer financial laws. Among other things, we:
The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.
EDUCATE
An informed consumer is the first line of defense against abusive practices.
ENFORCE
Like a neighborhood cop on the beat, the CFPB supervises banks, credit unions, and other financial companies, and we will enforce Federal consumer financial laws.
STUDY
The consumer bureau gathers and analyzes available information to better understand consumers, financial services providers, and consumer financial markets.
Above all, this means ensuring that consumers get the information they need to make the financial decisions they believe are best for themselves and their families—that prices are clear up front, that risks are visible, and that nothing is buried in fine print. In a market that works, consumers should be able to make direct comparisons among products and no provider should be able to build, or feel pressure to build, a business model around unfair, deceptive, or abusive practices.
CORE FUNCTIONS
The consumer bureau is working to give consumers the information they need to understand the terms of their agreements with financial companies. We are working to make regulations and guidance as clear and streamlined as possible so providers of consumer financial products and services can follow the rules on their own.
Congress established the CFPB to protect consumers by carrying out Federal consumer financial laws. Among other things, we:
- Conduct rule-making, supervision, and enforcement for Federal consumer financial protection laws
- Restrict unfair, deceptive, or abusive acts or practices
- Take consumer complaints
- Promote financial education
- Research consumer behavior
- Monitor financial markets for new risks to consumers
- Enforce laws that outlaw discrimination and other unfair treatment in consumer finance
Tuesday, May 22, 2012
In Rosa Parks case, lawyer says judge, 2 others looted icon's estate
In a highly unusual move, a lawyer is suing a Wayne County probate judge and two court-appointed lawyers, accusing them of looting the estate of the late civil rights icon Rosa Parks.
Attorney Stephen G. Cohen said in court papers that Judge Freddie Burton Jr. conspired with probate lawyers John Chase Jr. and Melvin Jefferson Jr., enabling the pair to rack up more than $507,000 in mostly unnecessary legal fees that drained Parks’ estate of its cash, leaving it $88,000 in debt.
Cohen also said Burton, through secret hearings and improper rulings, allowed the pair to concoct a bogus breach of confidentiality dispute. Cohen said Burton used the dispute to strip Elaine Steele and the Rosa and Raymond Parks institute that she created with Parks of their share of Parks’ property, said to be worth up to $8 million.
“Chase and Jefferson, together with Judge Burton, illegally, maliciously and wrongfully conspired… for the illegal purpose of raiding Mrs. Parks’ estate of its value,” Cohen said in a 38-page probate petition.
He requested a jury trial in probate court and asked Burton to remove himself from presiding over Parks’ estate.
Burton, Chase and Jefferson declined Wednesday to comment on the dispute, the latest twist in a long-running battle that began when Parks’ nieces and nephews challenged the validity of her trust after her death in 2005.
Probate experts predicted Cohen’s move would fail.
“This is out there — this is really, really out there,” said Andrew Mayoras, a Troy probate lawyer and co-author of “Trial & Heirs: Famous Fortune Fights!”
“Disagreeing with and challenging rulings of a judge is one thing; but suing a judge and the attorneys he appointed for their actions is another matter altogether,” Mayoras said, adding that Burton, Chase and Jefferson are highly respected.
Patricia Patterson-Courie, a Clinton Township probate lawyer who taught probate law at the University of Detroit Mercy, agreed.
“This is a difficult allegation to prove and it would be very difficult to produce evidence of a conspiracy,” Patterson said. She said Cohen may simply be trying to force Burton to remove himself from Parks’ estate.
But Larry Dubin, a University of Detroit Mercy law professor, said: “Perhaps judge Burton will feel increasing pressure to recuse himself now that he is being placed in a defensive position.”
Cohen said he also wants Burton, Chase and Jefferson to restore all of the money to the estate.
If Burton refuses to recuse himself, Cohen could appeal the decision to Chief Wayne County Probate Judge Milton Mack Jr., to Wayne County Circuit Court and then to state appellate courts.
Court rules make it difficult for lawyers to disqualify judges to discourage forum shopping.
A hearing on Cohen’s requests is set for next Tuesday.
This is the second time in a month that Cohen has accused Chase of misconduct in an estate battle. In April, Cohen file court papers accusing a Detroit law firm and Chase of insinuating themselves into the estate of Don Barden, the late casino mogul. Cohen said Chase and the firm tried to manipulate probate proceedings to rake in excessive fees and got a judge to seal the court file to keep Barden’s siblings in the dark.
Many of Cohen’s allegations were laid out in a series of Free Press stories that began last summer.
Parks became a civil rights hero by refusing to give up her seat to a white man on an Alabama bus in 1955. She and her husband eventually moved to Detroit.
Parks, who had no children, set up an estate plan to give the bulk of her personal and intellectual property to the Rosa and Raymond Parks Institute for Self Development and Steele, her longtime assistant and caregiver. Parks’ estate plan called for Steele and retired 36th District Court Judge Adam Shakoor to handle the estate.
But that didn’t happen.
After Parks’ 13 nieces and nephews contested her estate plan, Burton appointed Chase and Jefferson to take charge.
Steele, the institute and the relatives settled their differences in a confidential agreement that gave the relatives 20% of Parks’ property and royalties from licensing her name. The rest went to the institute and Steele.
Although the agreement called for Burton to put Steele and Shakoor back in charge of the estate, Cohen said Burton refused, allowing Chase and Jefferson to continue to run up huge legal bills.
After most of the estate’s cash was gone, Cohen said, the lawyers accused Cohen of disclosing part of the confidential agreement. That prompted Burton to strip Steele and the Institute of their share. He indicated he planned to give their stake to a charity of his choosing.
Guernsey’s Auctioneers of New York City is trying to sell Parks’ belogings to an institution that can put them on public display.
Chase and Jefferson have denied any wrongdoing and the Michigan Court of Appeals ruled that the fees were proper and that they alone were responsible for recognizing the value of Parks’ possessions.
Last summer, Cohen asked the Michigan Supreme Court to overturn the appeals court ruling.
In December and again in January, the high court ordered Burton to put Steele and Shakoor back in charge of the estate.
Although Burton reinstated Steele and Shakoor, Cohen said that the judge has refused to give them control over Parks’ property, and has allowed Chase and Jefferson to ding the estate for an additional $120,000 in legal fees.
Contact David Ashenfelter: dashenfelter@freepress.com
Attorney Stephen G. Cohen said in court papers that Judge Freddie Burton Jr. conspired with probate lawyers John Chase Jr. and Melvin Jefferson Jr., enabling the pair to rack up more than $507,000 in mostly unnecessary legal fees that drained Parks’ estate of its cash, leaving it $88,000 in debt.
Cohen also said Burton, through secret hearings and improper rulings, allowed the pair to concoct a bogus breach of confidentiality dispute. Cohen said Burton used the dispute to strip Elaine Steele and the Rosa and Raymond Parks institute that she created with Parks of their share of Parks’ property, said to be worth up to $8 million.
“Chase and Jefferson, together with Judge Burton, illegally, maliciously and wrongfully conspired… for the illegal purpose of raiding Mrs. Parks’ estate of its value,” Cohen said in a 38-page probate petition.
He requested a jury trial in probate court and asked Burton to remove himself from presiding over Parks’ estate.
Burton, Chase and Jefferson declined Wednesday to comment on the dispute, the latest twist in a long-running battle that began when Parks’ nieces and nephews challenged the validity of her trust after her death in 2005.
Probate experts predicted Cohen’s move would fail.
“This is out there — this is really, really out there,” said Andrew Mayoras, a Troy probate lawyer and co-author of “Trial & Heirs: Famous Fortune Fights!”
“Disagreeing with and challenging rulings of a judge is one thing; but suing a judge and the attorneys he appointed for their actions is another matter altogether,” Mayoras said, adding that Burton, Chase and Jefferson are highly respected.
Patricia Patterson-Courie, a Clinton Township probate lawyer who taught probate law at the University of Detroit Mercy, agreed.
“This is a difficult allegation to prove and it would be very difficult to produce evidence of a conspiracy,” Patterson said. She said Cohen may simply be trying to force Burton to remove himself from Parks’ estate.
But Larry Dubin, a University of Detroit Mercy law professor, said: “Perhaps judge Burton will feel increasing pressure to recuse himself now that he is being placed in a defensive position.”
Cohen said he also wants Burton, Chase and Jefferson to restore all of the money to the estate.
If Burton refuses to recuse himself, Cohen could appeal the decision to Chief Wayne County Probate Judge Milton Mack Jr., to Wayne County Circuit Court and then to state appellate courts.
Court rules make it difficult for lawyers to disqualify judges to discourage forum shopping.
A hearing on Cohen’s requests is set for next Tuesday.
This is the second time in a month that Cohen has accused Chase of misconduct in an estate battle. In April, Cohen file court papers accusing a Detroit law firm and Chase of insinuating themselves into the estate of Don Barden, the late casino mogul. Cohen said Chase and the firm tried to manipulate probate proceedings to rake in excessive fees and got a judge to seal the court file to keep Barden’s siblings in the dark.
Many of Cohen’s allegations were laid out in a series of Free Press stories that began last summer.
Parks became a civil rights hero by refusing to give up her seat to a white man on an Alabama bus in 1955. She and her husband eventually moved to Detroit.
Parks, who had no children, set up an estate plan to give the bulk of her personal and intellectual property to the Rosa and Raymond Parks Institute for Self Development and Steele, her longtime assistant and caregiver. Parks’ estate plan called for Steele and retired 36th District Court Judge Adam Shakoor to handle the estate.
But that didn’t happen.
After Parks’ 13 nieces and nephews contested her estate plan, Burton appointed Chase and Jefferson to take charge.
Steele, the institute and the relatives settled their differences in a confidential agreement that gave the relatives 20% of Parks’ property and royalties from licensing her name. The rest went to the institute and Steele.
Although the agreement called for Burton to put Steele and Shakoor back in charge of the estate, Cohen said Burton refused, allowing Chase and Jefferson to continue to run up huge legal bills.
After most of the estate’s cash was gone, Cohen said, the lawyers accused Cohen of disclosing part of the confidential agreement. That prompted Burton to strip Steele and the Institute of their share. He indicated he planned to give their stake to a charity of his choosing.
Guernsey’s Auctioneers of New York City is trying to sell Parks’ belogings to an institution that can put them on public display.
Chase and Jefferson have denied any wrongdoing and the Michigan Court of Appeals ruled that the fees were proper and that they alone were responsible for recognizing the value of Parks’ possessions.
Last summer, Cohen asked the Michigan Supreme Court to overturn the appeals court ruling.
In December and again in January, the high court ordered Burton to put Steele and Shakoor back in charge of the estate.
Although Burton reinstated Steele and Shakoor, Cohen said that the judge has refused to give them control over Parks’ property, and has allowed Chase and Jefferson to ding the estate for an additional $120,000 in legal fees.
Contact David Ashenfelter: dashenfelter@freepress.com
Tuesday, May 8, 2012
FBI - Nursing Home Abuse
Nursing Home Abuse
Owner Cheats Government and Neglects Residents
Not enough food. Little air conditioning or heat. Roofs leaking to the point that barrels and plastic sheets were used to catch rain water. Trash that piled up in dumpsters. Flies and rodents everywhere, along with rampant mold and mildew.
These were just some of the horrible conditions that elderly residents of three Georgia nursing homes lived under for several years.
The primary culprit: the owner of these homes who, despite having received more than $32.9 million in payments from Medicare and Medicaid for residents’ care, elected to pocket much of the money instead.
But he didn’t get away with it. Earlier this month, George Dayln Houser was convicted in Atlanta of defrauding Medicare and Medicaid. Houser’s accomplice and wife, Rhonda Washington Houser, pled guilty last December.
To receive Medicare and Medicaid payments, Houser agreed to provide his residents with a safe and clean physical environment, nutritional meals, medical care, and other assistance. But as complaints began to roll in from residents, family members, nursing home staffers, and vendors hired to provide services, it became clear he had no intention of doing so.
These complaints led to an investigation by the FBI’s Atlanta office—in concert with the Department of Health and Human Services’ Office of Inspector General and the Internal Revenue Service’s Criminal Investigation. Evidence gathered by investigators and later introduced at trial showed that the services Houser provided to residents were so deficient that the judge determined them “worthless.” It was a precedent-setting case…the first time ever a defendant was federally convicted at trial for submitting payment claims for worthless services.
There were other deficiencies in the homes as well, including:
Inadequate staffing: Houser failed to maintain a nursing staff sufficient to take proper care of the residents. Staffing shortages started plaguing the homes after Houser began writing bad checks to his employees, causing many to resign. He also withheld health insurance premiums from his employees but let insurance lapse for non-payment, leaving many with large unpaid medical bills.
Failure to pay vendors: Houser didn’t pay food suppliers or providers of pharmacy and clinical laboratory services, medical waste disposal, trash disposal, and nursing supplies. Kind-hearted employees often used their own money to buy milk, bread, and other groceries so residents would not starve. They also brought in their own nursing and cleaning supplies and washed residents’ laundry in commercial laundromats or even in their own homes.
And while his residents and his employees were suffering, what were Houser and his wife doing? Spending their ill-gotten Medicare and Medicaid payments on hotel real estate investments, new homes, vacations, luxury cars, new furniture, and nannies for their child. Houser even gave money to an ex-wife…paying her a nursing home salary (even though she never worked there) and buying her a million-dollar home in Atlanta.
Said Atlanta Special Agent in Charge Brian Lamkin, “The level of greed and lack of compassion for others that was seen in this case reflect the very reason why the FBI, in working with its many and varied law enforcement partners, dedicates vast investigative resources to combating health care fraud.”
And in this case, we were especially happy to see that all three nursing homes were eventually shut down by the state, and residents moved into better living quarters to get the care and compassion they deserve.
Owner Cheats Government and Neglects Residents
Not enough food. Little air conditioning or heat. Roofs leaking to the point that barrels and plastic sheets were used to catch rain water. Trash that piled up in dumpsters. Flies and rodents everywhere, along with rampant mold and mildew.
These were just some of the horrible conditions that elderly residents of three Georgia nursing homes lived under for several years.
The primary culprit: the owner of these homes who, despite having received more than $32.9 million in payments from Medicare and Medicaid for residents’ care, elected to pocket much of the money instead.
But he didn’t get away with it. Earlier this month, George Dayln Houser was convicted in Atlanta of defrauding Medicare and Medicaid. Houser’s accomplice and wife, Rhonda Washington Houser, pled guilty last December.
To receive Medicare and Medicaid payments, Houser agreed to provide his residents with a safe and clean physical environment, nutritional meals, medical care, and other assistance. But as complaints began to roll in from residents, family members, nursing home staffers, and vendors hired to provide services, it became clear he had no intention of doing so.
These complaints led to an investigation by the FBI’s Atlanta office—in concert with the Department of Health and Human Services’ Office of Inspector General and the Internal Revenue Service’s Criminal Investigation. Evidence gathered by investigators and later introduced at trial showed that the services Houser provided to residents were so deficient that the judge determined them “worthless.” It was a precedent-setting case…the first time ever a defendant was federally convicted at trial for submitting payment claims for worthless services.
There were other deficiencies in the homes as well, including:
Inadequate staffing: Houser failed to maintain a nursing staff sufficient to take proper care of the residents. Staffing shortages started plaguing the homes after Houser began writing bad checks to his employees, causing many to resign. He also withheld health insurance premiums from his employees but let insurance lapse for non-payment, leaving many with large unpaid medical bills.
Failure to pay vendors: Houser didn’t pay food suppliers or providers of pharmacy and clinical laboratory services, medical waste disposal, trash disposal, and nursing supplies. Kind-hearted employees often used their own money to buy milk, bread, and other groceries so residents would not starve. They also brought in their own nursing and cleaning supplies and washed residents’ laundry in commercial laundromats or even in their own homes.
And while his residents and his employees were suffering, what were Houser and his wife doing? Spending their ill-gotten Medicare and Medicaid payments on hotel real estate investments, new homes, vacations, luxury cars, new furniture, and nannies for their child. Houser even gave money to an ex-wife…paying her a nursing home salary (even though she never worked there) and buying her a million-dollar home in Atlanta.
Said Atlanta Special Agent in Charge Brian Lamkin, “The level of greed and lack of compassion for others that was seen in this case reflect the very reason why the FBI, in working with its many and varied law enforcement partners, dedicates vast investigative resources to combating health care fraud.”
And in this case, we were especially happy to see that all three nursing homes were eventually shut down by the state, and residents moved into better living quarters to get the care and compassion they deserve.
Nursing Home Fraud
When a nursing home bills Medicare and Medicaid for services that aren’t provided or that fail to measure up to basic medical standards, that’s not only exploitation, it’s fraud.
Here are some signs that could point to fraudulent billing by nursing homes:
- Residents living in unsanitary, unsafe environments.
- Residents looking malnourished and/or dehydrated.
- Ghost-billing for patients who don’t exist or who have died.
- Offers of free items or services to a resident in exchange for a Medicare or Medicaid number.
- Upcoding (putting residents in ultra-high billing categories reserved only for those needing highly specialized care and rehabilitation).
- Using inferior medicine or medical equipment for residents while billing for premium services.
- Billing for services and/or equipment not provided.
If you are a nursing home employee or a family member of a nursing home resident and suspect that your facility is engaging in Medicare or Medicaid fraud, submit a tip to the Health and Human Services’ Office of Inspector General or the FBI.
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