Fraud & Theft
A Rare and Happy Ending
Written by Joseph Rosenblit

In the fields of law and investigation, the full spectrum of human drama may be played out within a single case. This is a story about a woman whose love and trust was repaid with fraud and theft to the point where she stood facing the precipice of disaster one heartbeat away from living on the street.

It all began around ten years ago when the client, we'll call her Mrs. W, heard a knock on her door. It was a pleasant looking middle-aged woman, well coiffed and professionally dressed. She introduced herself as Mrs. S. She went on to explain that she was a licensed insurance agent as well as a paralegal and she helped people set up wills, trusts and financial retirement vehicles. The two women were about the same age, and as they talked it appeared they had much in common. Their husbands were about the same age and they seemingly enjoyed many of the same things.

Mr. and Mrs. W had recently moved from another county where they sold a retail business they owned and bought for cash a condominium where they planned to live out their retirement. They knew very few people in the new area and were pleased to meet a couple with whom they shared so many interests. The four became fast friends, spending holidays together, taking trips together, confiding in one another and generally developing a relationship reposed with trust.

A few years later Mr. W became gravely ill. Mr. and Mrs. S were there for the W's. When a final large payment for the business that the W's sold was due and the buyer was late making the payment, Mrs. S offered to intervene to help get the payment made and she succeeded in doing it. The amount paid was in the low six figures and the S's immediately suggested that they could pay 12 to 15 percent interest if the W's lent them the money. As security on a promissory note the S's pledged 10,000 shares of stock in their incorporated financial services business.

Shortly afterwards Mr. W passed away. All alone in the world, Mrs. W, an uneducated, unsophisticated and naive woman, turned to Mr. and Mrs. S for solace and comfort. Soon they talked her into executing another promissory note secured against more stock in their company with funds obtained by Mrs. W re-financing her home that had been fully paid off. When they were finished with her, Mrs. W had lent them in excess of $600,000. and had no equity in her home.

For a brief time Mr. and Mrs. S paid on the note and this covered Mrs. W's new mortgage and gave her sufficient funds to live. When Mrs. W developed back problems the S's had her stay with them and had her sign a medical power of attorney so that they could help her take care of all her needs. After recovering Mrs. W returned home and her new life went on.

A year or so passed and that next spring Mrs. W. received a curious call. A woman identifying herself as a property manager was verifying whether Mrs. W. had signed an application to lease commercial office space. Mrs. W. denied doing so and the property manager asked if she knew Mrs. S. When Mrs. W. said yes, the property manager indicated that Mrs. S had stated she was an employee of a corporation of which Mrs. W was the CEO.

Stunned and confused, Mrs. W soon learned that Mrs. S. had obtained credit cards in Mrs. W's name. Mrs. W confronted Mrs. S and as soon as she did the payments stopped. That was when Mrs. W. sought legal advice. When she sought my counsel I immediately assigned it to a private investigator who discovered claims made against the Mr. and Mrs. S. from a variety of claimants including the California Department of Corporations (CDC).

I contacted the lead attorney from the CDC and we shared our respective data. He ultimately put me in touch with the Orange County District Attorney, Economic Crimes division who proceeded to investigate what Mr. and Mrs. S did to my client. I filed a civil suit and at the same time Mr. and Mrs. S were indicted for fraud and theft. I obtained a judgment against them and the criminal trial by the district attorney resulted in a conviction against them and a prison sentence of over 10 years each. Luckily, funds were found in bank accounts in the defendants' names, resulting in a significant restitution to Mrs. W. Working together, the civil and criminal justice system resulted in Mrs. W. getting a large portion of her monies restored to her.

Joseph Rosenblit,
Attorney at Law
31726 Rancho Viejo Road, Suite 121
San Juan Capistrano l California 92675
Phone (949) 248-3763 l Fax (949) 248-3460
Email: law.rose@yahoo.com

His legal emphasis is on cases involving fraud, serious personal injuries, homeowners association disputes and elder abuse.