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State Fraud Task Force Hears From Elderly Victims

Tribune photo by COLIN HACKLEY

Alex Sink listens as David Greene of Tallahassee talks about how he became a victim of fraud.

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By TOM BRENNAN | The Tampa Tribune

Published: October 6, 2008

TAMPA - After the events of Sept. 11, 2001, Bonnie Madden wanted to move her investments into something safer. The move almost cost her nearly $300,000 because of the machinations of her financial adviser.

"He said I was like his second mom," said Madden, 81, of Port Richey. "Every time I would come into his office, I would get a hug."

She said he persuaded her to dump existing investments and move the money into others she couldn't afford. Madden incurred penalties; the adviser made commissions.

"Anything he said, I believed," she said.

State regulators helped Madden recoup most of her losses. But the worst penalty that unscrupulous advisers typically face is being charged with a misdemeanor or losing their state license, which they can petition to reinstate in two years.

That outraged Florida Chief Financial Officer Alex Sink, who formed a task force to protect the state's elderly from financial fraud. Madden was one of three such elderly victims to speak at the task force's first meeting, held today in the Hillsborough County Courthouse.

"It is time for us to draw a line in the sand and say 'no more' to these shenanigans," Sink said.

Hillsborough County State Attorney Mark Ober, a task force member, agreed.

"These are very heart-wrenching testimonials and they shouldn't have happened," Ober said. "We must make every effort to make sure these practices cease."

Sink formed the task force with an eye to drafting tougher laws to be presented to the state Legislature to consider during its spring session.

Mary Nusser, 89, of Clearwater, who lost $95,000 while her adviser made $239,000 in commissioners, said the solution is easy.

"I hope they all get thrown behind bars for good so they can't hurt anyone else," she said.

Sink would like to make some of the tactics felony offenses.

"I've been hearing these stories for years and I'm tired of it," she said.

Wayne Chalu, Ober's division chief of economic crimes, said that in the interim the task force will look at how laws on the books could be applied to these crimes.

Sink said it is hard to know how much the elderly are being bilked because for every victim who comes forward, another is too embarrassed and remains silent.

She and Ober did have recommendations.

They advised not to sign anything without reading it and to make sure you understand a proposal. If not, don't proceed or run it by an attorney, friend or family member.

If you have any questions or want to report suspicious financial dealings call Sink's hotline: 1-877-693-5236.

Reporter Tom Brennan can be reached at (813) 657-4528 or tbrennan@tampatrib.com.

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