State v. Mr. D (DMC No. 15136) – Felony Fraudulent Schemes ($350,000 Misappropriated Wire Transfer), Federal Felony Bank and Wire Fraud, Felony Theft, Felony Vulnerable Adult Abuse and Felony Unlawful Use of Power of Attorney – Not Charged – Mesa Police Department Investigated (DR No. 20XX-XXXXXX3) and CFA Institute Investigated.
Mr. D was a financial planner. His mother went in for surgery and passed away. After that, his father (actually his grandfather that adopted him when he was a child) asked for help with his financial affairs because he was getting older and more forgetful. They then met with an Attorney and signed a Power of Attorney. This gave Mr. D access to a joint account with his father.
At some point, Mr. D wired $350,000 into his own account which he used to pay off his own mortgage. Also, funds were used to pay off about $80,000 on a Discover card. That $80,000 was later clawed back by his father. Lastly, he took a $124,000 payment to himself. The balance was then used to purchase a third condominium for his father’s trust. Mr. D also transferred two other condominiums into the trust, which resulted in a net positive of $65,000 to his father. Because everything totaled positive for his father’s trust, he assumed that he had done nothing wrong. However, he was contacted by Mesa Police and the CFA Institute regarding various improprieties. Mesa Police were looking into Felony charges of Fraud Schemes, Unlawful Use of a Power of Attorney, Theft, and Vulnerable Adult Abuse. There was also a potential for a Felony Federal Bank and Wire Fraud claim due to the use of the wire transfer to a federal banking institution.
We became involved and we were able to shut down the investigation and keep it purely as a civil matter. Through the course of the civil lawsuit, a proposal was made to have Mr. D. repay his father $400,000, in exchange for merely keeping all three condominiums. Ultimately, the case resolved civilly and there were no criminal charges ever brought against Mr. D. Originally, Mr. D was facing mandatory prison time due to the fact that the amount of loss was above $100,000.