This is one of those cases that involve more than one area of fraud and identity theft. Additionally, it highlights the fact that you can be a victim when you least expect it and by whom least suspect. It also shows how the elderly are prime targets for mortgage fraud and identity theft.
It involves a couple named Albert and Santa Basile, an elderly couple that seemed to do everything right. The couple nevertheless has been plaqued by health issues within their family. They had a loss of their 27-year old son and are now in poor health. Their daughter, now 44, also is facing health problems. Albert spent some time in the Army, and also spent over 60 years as a butcher, a trade he began in South Philly when he was just 12. Albert has been diagnosed with Parkinson's disease. They worked hard, rarely took vacations, and did everything they could to pay off their mortgage.
Now they have a new problem, one they never would have expected. A long-time friend and neighbor of theirs, John Malampy, came to their rescue. John had become like a brother to their daughter and promised them he would take care of her after the couple had passed on. He would drive them where they needed to go and offered to help keep their bills in order after Albert couldn't write anymore.
Then the problems began. John started diverting their Social Security and pension checks after they were deposited. He then transferred $21,000 from their home equity loan into his personal account. As if that was not enough, he convinced them to raise the loan to $100,000 and stole that money as well.
After several months, the couple started receiving calls about unpaid bills and threats to cut off utilities. When they asked John why they were receiving the calls, he stated that not to worry, they had, in fact, been paid.
After nearly a year, the trusting couple finally had another family member look into the persistent phone calls. The truth finally came out and it truly devastated the couple, both financially and emotionally.
John immediately confessed, telling police he used the money for bills, stores, beach outings, and other usual stuff. He immediately plead guilty to identity theft, theft by deception, and forgery. All he has received so far is a sentence for probation and restitution.
Now here is a lesson that we all must learn from this. You would think that since the couple can prove they were a victim of identity theft and mortgage fraud they should be able to avoid the payments and pick up where they were before, right? Not so. In fact they law is against you in this case.
It actually states that even if you can prove it was a thief that did this, if you have not sent a letter that arrives at the creditor within 60 days, you are fully responsible for the charges, regardless! So, there story continues.
Wachovia Bank demanded that the couple be held responsible despite their ability to prove fraud. The bank pressed form months with contentious foreclosure proceedings. The bank would likely win the case since the couple did not make the required notification per the law. However, due to the bad publicity received by local newspapers, the bank has reversed its course and is no longer after the couple for the stolen funds.
Others have not been as fortunate.
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Wow..what a story! Those poor folks trusting that guy to take care of them instead he took them!!!