December 29, 2025  • By Dennis Beaver

There is an age when self-doubt — questioning our decisions, seeking approval of family and trusted friends for our choices — can prevent us from becoming victims of financial abuse, consumer fraud or even ourselves.

Like three-quarters of Americans over the age of 50, “Walter” and “Patty,” both in their late 70s, decided to “age in place” — remaining in the home they had lived in for many years, where they’ve formed friendships, have good neighbors and access to health care resources and much more.

Patty deals with severe mobility and dexterity challenges that require their primary bathroom to be remodeled. Watching a local television commercial for a company I will call Nightmare Bathroom Remodeling set the stage for the kind of financial elder abuse and consumer fraud we often see on the news.

If, before ever contacting Nightmare, they had read the negative Yelp reviews — which far outnumber the positive ones — I doubt you would be reading this story.

There were giant red flags

Walter described the first red flag they saw, though they didn’t grasp its significance at the time:

“We visited their showroom on July 22, 2025, to discuss bathroom renovations and met with the owner, ‘Bill,’ who gave us a rough estimate of $90,000. We gave him a retainer fee of $3,000. No contract was signed.”

In California, a home improvement contractor can charge only 10% of the contract price to a maximum of $1,000 as a down payment. Contracts over $500 must be in writing and signed before any money is accepted from the customer.

Violations can result in criminal charges and disciplinary action by the Contractors State License Board in California.

Other states have specific limits on the maximum down payment a contractor can charge. Some set a percentage, while a combination of a percentage and a dollar amount is used in others. To find information for your state, you can check out this website provided by Angi.

That $3,000 down payment clearly violated the law in California. It is Nightmare’s MO. But wait, it gets worse.

Additional huge deposit paid, though no work done or materials delivered

On September 12, 2025, the couple met with customer service rep “Ima” (as in I’m a Thief) and signed a $120,000 contract.

Three weeks later, Nightmare illegally had them pay an additional $90,000. No work on the job had been started, no materials had been delivered, and nothing justified this payment.

Additionally, Nightmare failed, in virtually all respects, to comply with the terms and specifications that must be in a home improvement contract.

And then a shocking call from their bank

Near the end of October 2025, Walter was informed by their bank that multiple charges had been made from their checking account, and Ima had set up an autopay arrangement for health insurance and dental insurance premiums. She had forged Walter’s signature on counterfeit checks.

“I called Ima about it,” Walter said. “She first claimed to have no idea what I was talking about, then she emailed to tell me not to contact her boss — because she needed the job, as she was a single mother with a son.”

The bank replaced the money Ima had stolen from their account.

Angry and disappointed, Walter reached out to friend and neighbor Mark Novak, professor of sociology at California State University, Bakersfield. Novak referred him to me. (Readers might remember meeting Novak in my 2019 Kiplinger article Needing to Hire? Think Wrinkles.)

Walter asked Novak if he should inform Ima’s employer, and Novak felt that he should — to at least protect other customers. Walter did and then was surprised to learn that Ima remained employed at Nightmare.

I tried to reach Nightmare’s owner, but he refused to take my call.

The couple needed to cut ties with this crooked company, but what came next made me worry about their reasoning and decision-making abilities.

Self-doubt can be your greatest friend

Walter emailed me right before Thanksgiving: “Thanks for your advice, but we are continuing to work with Nightmare.”

I replied, “Folks, the fact that an employee forged your signature on counterfeit checks should have scared the pants off of you, and had I been notified at the time, I would have personally helped you file a criminal complaint with the police. I urge that you immediately demand a refund of what they illegally charged you. …

“I have learned over the years that if we have close, responsible family members and friends, major financial/life decisions we make when we get older should be discussed with them. We should get their opinions and ask them to review contracts or anything that puts our money or well-being at risk. And, most of all, we should never feel embarrassed.

“Your decision to remain with this company deeply worries me. This is the time for self-doubt! Am I missing something? Maybe. Let’s discuss this with our kids, accountant or family lawyer — someone whose advice we trust — before we do something that could wind up hurting us.

“Please show this email to your most responsible children. Have them call me to get a referral to an elder law attorney. Yes, you need to do that. And when you are near my office, please drop in. I’d love to meet you both in person.”

My next column will cover why a consultation with an elder law attorney can be the best investment children of aging parents can make.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post As We Age, Embracing Our Own Self-Doubt Can Be a Gift: A Cautionary Tale About Elder Financial Abuse appeared first on Dennis Beaver.

“Mr. Beaver, I am the victim of a vagus nerve stimulation (VNS) scam.”

Vagus nerve scam?

Most of us know about vagus nerves from high school biology — that they are the longest in our bodies, but not much more.

However, for the past few years, vagus nerves have been the subject of a great deal of investigation in bioelectronic medicine for their ability to reverse inflammation, which is a major factor in a number of life-altering diseases — and, as my caller discovered, fraud.

“While the existence of the vagus nerve has been known for centuries, its potential to treat a variety of serious health conditions has only been seriously studied the past few years by the medical profession,” neurosurgeon Dr. Kevin J. Tracey writes in the just-published, compelling read, The Great Nerve: The New Science of the Vagus Nerve and How to Harness Its Healing Reflexes.

During our interview, Tracey said, “Vagus nerve stimulation (VNS) involves delivering electrical impulses to the vagus nerves to regulate various bodily functions and potentially improve conditions like epilepsy and depression. It can be achieved through medical devices like implanted stimulators the size of a jelly bean.

“Part of my motivation in writing The Great Nerve was to warn the public about the many false claims that are being made about bioelectronic medicine and, specifically, devices that claim to influence functioning of the vagus nerves but in reality do nothing at all except separate you from your money.”

My caller “Sharon” was one example.

Wanted to help her employees

She owns a demolition company “that tears down small buildings, which requires employees to do a fair amount of heavy lifting, and they often complain of back and muscle aches requiring them to take some time off and swallow (over-the-counter pain relievers) as if they were candy to reduce swelling and inflammation.

“A few months ago, I saw an internet advertisement for a vagus nerve stimulator that stated, ‘Is ideal for people who work in construction and often experience muscle aches and pain resulting from inflammation.’ I ordered four of the $500 devices — which had a 100% money-back guarantee — put the purchase on my bank’s credit card and gave them to our employees.

“These things look like earphones, only you attach them to your neck, flip a switch, they start to buzz, and your pain is supposed to vanish. But what vanished was my money!

“My employees all tried the device, and we emailed the company to complain that the devices did not work. They wrote back suggesting that we were not placing them correctly, to try them for at least a few months, and then they would refund us if we asked.

“It has been six months. The devices do not work, and the company refuses to issue a refund. My credit card company says that we are too late to contest the charge. Is there anything I can do?”

These scammers know what they are doing

Each credit card issuer has its own time limit to contest a charge. U.S. law sets a minimum time limit of 60 days. Most banks give cardholders 120 days to dispute a charge.

However, if a customer can establish actual fraud by the seller, this usually opens up the time frame in which to challenge the charge.

With Sharon on the phone, I researched the seller and found a pattern of similar complaints about the device not working and the seller’s refusal to agree to a refund after dragging out the matter for months and then claiming the customer had waited too long.

With that information, I got a supervisor on the line at Sharon’s credit card company, and he agreed to accept her claim.

Had she looked at the seller’s online reputation, it is clear she never would have ordered the device.

We will be hearing a lot more about vagus nerves

I do not recommend that you begin reading The Great Nerve too late in the evening — you could stay up for hours past your bedtime. It is that interesting and reads like a historical novel, only this is real science. Tracey writes in the style of another gifted physician/author we also read in high school English — William Carlos Williams.

He takes us on trips around the world where tiny devices are surgically implanted in patients to treat patients’ rheumatoid arthritis, inflammatory bowel disease, lupus, multiple sclerosis, diabetes, obesity, stroke, depression, Alzheimer’s and Parkinson’s disease, in addition to other inflammatory-based conditions.

Tracey’s research into vagus nerve stimulation, along with his colleagues’ has led to treatments for the most difficult medical conditions, such as stroke, drug-resistant epilepsy, PTSD and depression. And there is evidence that long COVID may be helped by VNS.

Today, at major hospitals and medical centers, VNS is used routinely to give patients, in many instances, a second chance at living lives that are close to what they knew before falling ill or suffering a stroke. And just think of the applications for work-related, painful injuries.

As Tracey makes clear in The Great Nerve, VNS places medicine at the threshold of what was science fiction. His book is testimony to what dedicated physicians bring to humanity.

If you are interested in trying VNS, to avoid being scammed, consult with your doctor for a referral to a recognized medical facility that uses these procedures.

Given that VNS is fairly new, I personally would be leery of anything offered online unless it’s prescribed or recommended by a physician.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

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If you enjoy going online late at night, chances are that seemingly out of nowhere, flooding your screen, ads appear that discuss ways of buying a business with little or no money down.

“Most of the people behind these ads are cons, passing themselves off as gifted business coaches who want to share their insight — for a hefty price,” says Josh Tolley, nationally syndicated talk show host and author of Acquisitional Wealth.

My interview with him and article earlier this year yielded a bumper crop of emails and phone calls from the very crooks Tolley is referring to, all wanting me to interview them for a story.

“These people claim to be experts, but not from expertise in running an actual business.

“Their entire purpose is to up-sell you on more and more expensive coaching/seminars that are generally worthless, but intended to lead you to believe that making millions owning your own business is easy — if you follow their formula.”

How these scams suck you in

“They appeal to that segment of the American population who realize they are not keeping up with inflation, their retirement account isn’t going to work like they thought it was, so people are desperate for something. And these hucksters are giving them a little razzle dazzle and milking them for tens of thousands of dollars.

“The initial come-on is a podcast with free content offer, such as ‘Sign up now for my free newsletter on how to buy a business.’ Or, ‘Sign up now for my free video on how to buy a business.’”

As Tolley describes, “If this makes sense, and you want to know more, then you are encouraged to sign up for their Mastermind Program, that costs $5, $10, $15 thousand for a weekend. And then;

– If you want the elite level skills, this will cost $30, $40, $50, $100 thousand more.

– Reality is that you attend these programs, and as these coaches are not business professionals, they are not going to represent you as a broker, realtor, lawyer or an accountant would. And virtually all of them have never owned a business.

“Dennis, I have met so many people who have fallen for these learn all the secrets of buying a business scams and paid as much as what they could have used as a down payment on a business and learned virtually nothing of practical value!”

Red Flags to Watch For

Now, you are probably thinking, “What are the signs that I am about to get sucked into something I should avoid?”

Tolley provides these answers:

“If one course leads to more courses. If the person teaching the course does not offer the services of whatever it is they are teaching. If the person teaching the course has a track record of offering or teaching other courses and topics that are not related at all to the one they are currently teaching, If their social media posts are ‘Look at me! I have mansions, fast cars, a private jet and yachts!’

“Notice how legitimate investment houses do not advertise that way.”

How does someone become a coach?

They read a book or attend a seminar and decide to do it!

Or, as happened with one of Tolley’s former, short term employees, he hired a firm to have a book ghost-written for $15,000, which he did not contribute to at all, but had his name on it. A third-party company created the content and a production company made videos, workbooks and off he went, selling.

“The tragedy is that some of these ‘experts’ have become multi-millionaires. We have followed their programs at hotels where they charge over $10,000 per person, 300 people walk in! And what they teach is often just useless.”

Advice for Anyone Thinking of Buying a Business

– If you are serious about buying a business, do not go to anyone selling these courses.

– Do not buy a business without the assistance of a qualified and experienced M&A brokerage.

– Do not buy a business because you’ve heard that it is a great way to get wealthy even though it is. You want to be sure this is something you truly want as you will be responsible for it.

– You must understand both personal and business finances. If you do not understand the importance of deadlines, payroll, taxes, workers compensation insurance you can expose yourself and your family to lifelong financial and legal ruin.

– It is wise to have had some experience in the business world. Some of the best entrepreneurs are in businesses they don’t have experience in, however, they know marketing, branding, advertising, sales, payroll, HR, leadership — they have the set of skills for what it takes to run a business, but not the specifics of running this business.

For a fascinating video about a “business coach” I recommend:

https://youtu.be/6Vc3ghgvOAI

Finally, ask yourself, “If CEOs with MBAs preside over companies that fail, how can I possibly succeed with my limited or lack of experience in the business world, just because I’ve attended these coaching seminars?”

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post The folly of ‘Buy a Business’ coaching scams appeared first on Dennis Beaver.

How often have you read a glowing online review–about a business, lawyer, physician, you name it, anything–believed the review, bought the product, dined in the restaurant, or hired the person, only to be disappointed?

Do you know what the Federal Trade Commission, which has always had the power to outlaw fake reviews, did about the problem over the past several years?

Absolutely nothing!

Until this past August, the FTC had been sitting on its hands for years. In fact, the sick joke is that when measured against their performance, their own mission statement qualifies as a fake review:

“To prevent business practices that are anti-competitive, deceptive or unfair to consumers; to enhance informed consumer choice and public understanding of the competitive process; and to accomplish this without unduly burdening legitimate business activity.”

The Cowardly Lion Found Some Courage

But, on Aug. 14 this year, like the Cowardly Lion in The Wizard of Oz, the Federal Trade Commission announced a rule that will combat fake reviews and testimonials by prohibiting their sale or purchase and seek civil penalties against knowing violators.

“This is music to the ears of thousands in the business community and consumers who have become victims of misleading and outright fake online reviews,” says Damian Rollison, Director of Market Insights at SOCi, a marketing platform, based in San Diego, working with over a thousand brands to manage their online presence.

How consumers are harmed by fake and misleading reviews

Rollison explained the nature of fake and misleading online reviews, “it is too easy for businesses to acquire fake or fraudulent reviews that are often very hard for consumers to detect, and see the difference between a fake and a real review. Their goal is to bias people towards those businesses in an unfair way. Consumers are aware that fake reviews exist online, but don’t necessarily have the best tools to know what is real and what is fake.

“The whole thing is insidious. Essentially, consumers are being duped into thinking that their peers are recommending products and services when in fact the business is behind all of this, providing it an unfair advantage. This is especially important when it comes to local business reviews, and to services that are central to your life and livelihood,” he points out.

“Dennis, just think of health, medical or legal services where we find a great deal of fake review content. Another place where it is especially critical are services that people need in an emergency. Think about a locksmith or a garage door repair service. Are they legit or scammers?”

This made me think of the calls I’ve received from readers looking for an attorney, were deeply influenced by impressive “client” reviews, only to discover that the lawyer had gotten in trouble with their state bar with the reader’s type of case.

Real or Fake? Are There any Clues?

You are no doubt thinking, ‘are there giveaways that suggest what I am reading is a fake review?’

“Yes,” Rollison says, and cites, “reviews that seem suspiciously enthusiastic as though they are shilling for that company, sounding like a TV commercial or an advertisement would immediately tip me off. Some experts have even said that reviews that simply contain too many exclamation points as a sign of enthusiasm ought to be looked at suspiciously.

For example, ‘This is the best carpet cleaning service in Miami,’ and phrases like that suggest to me that the people who own the business are trying to rank higher in search engines. Also, it is a sign that the review might be fraudulent.

Which Reviews to Read First?

So, what should we read first? The positive or negative reviews?

“A lot of people feel that it is best to read negative reviews first. There is an instinct on the behalf of consumers that negative reviews are more likely to be honest. We might not want to be too quick to assume that all fake reviews are positive because there are examples where competitors post negative reviews of a business and those reviews are also fraudulent. So you want to be diligent, suspicious in general and skeptical of review content that may look suspicious even though it is true.”

I asked Rollison which platforms do a better job at removing suspect reviews?

“Let me draw a contrast between Yelp and Google. We have done research which shows that the average five star rating of a business on Google is 4.2 stars – and that’s pretty high, while the average rating on Yelp is 3.2 stars,

“At least one of the reasons for that, we believe, is that Yelp has historically been much more aggressive in removing reviews that are suspected to be fake.”

“But you still need to use common sense, look for online praise followed by exclamation marks and be very, very cautions,” Rollison concludes.

Now, let’s see if the FTC decides to go after the billion dollar language app fraud, Babbel.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

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If you have owned a house or commercial property for several years, chances are that someone has recently either phoned or sent what appears to be an offer to buy it.

In March of 2023, an article in The Star News of Medford, Wisconsin, noted that, “Area residents are seeing a flood of unsolicited mail from people seeking to purchase their properties, often at greatly discounted amounts.”

“David” is the executor of his parents’ estate, and received a “Solicitation and Agreement” to buy 40 acres of land not far from Medford. In researching the company, no physical address was found, and when checking with the Better Business Bureau, either there is no rating or they are rated very poorly.

Red Flags Were Flying

After receiving the offer, David phoned the referenced telephone number, explaining: “It was a Saturday and the phone rang and rang with no voicemail which immediately raised my antenna. Who sends out a solicitation to purchase property and provides a telephone number without an answering service or voicemail?”

He called again the following Monday, “And while I still felt it was likely to be fraudulent, as I am the trustee of an estate where that property needs to be liquidated to carry out the wishes of the trust, I felt a duty to explore if this was a legitimate offer.

“I spoke to a receptionist, who did not answer using a business name. After inquiring where I could find properties they’ve transacted, I was told, ‘I’m only a receptionist, call Adam,’ which I did – without a return call.

“So I phoned again, got a different receptionist. Expecting a different outcome, I asked the same questions with an identical reply.”

By this time David was pretty certain something crooked was going on, especially with no call from Adam. “So I texted the number as the letter instructed, and, once again, there was no reply.”

Became More Assertive

Speaking with the receptionist again, but far more assertive, David point-blank asked her if the company is involved in some type of fraud? “Are you targeting older people who have owned parcels of land for extended periods of time and offering them a fraction of what their property is worth?”

“I told her that I planned to send a letter to the Arizona attorney general – which got no reply from her.”

Concluding our chat, David raised an important point about this unsolicited offer: They had the right to cancel at any time.

None of this made sense.

“Dennis, these 40 acres are worth over $400,000. And what do you think these people offered? $38,000!”

Analysis by Two Real Estate Attorneys

I asked Hanford real estate attorneys Ron P. Jones and Robert B. Zumwalt, both friends of this column, for their take on these unsolicited offers.

Jones: Interesting. I haven’t seen one quite like this before. What my wife and I usually receive in the mail is a postcard, often with a photograph of the subject property, telling us that we will get a cash offer with no contingencies that will close in 30 days.

The problem with these things is that they’re usually offering 25% to 35% of the market value, and sometimes much less. Somebody older, living in their house for many years, who bought the house for $15,000 cannot comprehend their house is worth $250,000 or even far more, depending on the area.

So, if they get an offer for $75,000 or $95,000, they think it’s a gold mine. The biggest part of the scam is that these snakes are making offers to people who don’t know better and then reselling the property and making an unscrupulous profit.

Zumwalt: This solicitation has a “fill out the contract yourself” section and that is the first time I’ve seen something like this that invites trouble. It could very well be that these solicitations are designed to gather personal information about people with no real sale in mind in order to steal their identity.

There is an assignment clause in that contract. I have seen at least one case in which the “buyer” is acting more like an unlicensed real estate agent. My guess is their real intent was always to quickly sell the contract to the real buyer for a fee without ever putting up any money of their own. So, they bear none of the risks of investing their own capital and none of the ethical obligations of a licensed agent.

What Should You Do?

If you are interested, ask for the person’s name, contact information, and tell them you need to think about the offer and run it by your family attorney before making any kind of decision. It is important to verify their identity before accepting any offer, and only after doing research on the person/company and meeting with your attorney or CPA.

Finally, your land isn’t going anywhere, so there is no hurry. Do not be pressured.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post I want to buy your house! appeared first on Dennis Beaver.

“I manage a fulfillment center in the South that assures products ordered on e-commence websites actually reach the customer.

“Frankly, I grew tired of hiring 20-somethings for office work, as most of them wasted time on their cell phones or played computer games when they thought no one was watching. A friend gave me your article ‘Needing to Hire? Think Wrinkles,’ which made a strong case for hiring older, much more responsible workers.

“And that’s what we did – hiring people over 60 years of age who needed a job and were grateful to work for us. Things could not go any smoother. But recently, our computer data was stolen, including names and ages of all employees.

“One day, Marie got a phone call from someone claiming to be from Social Security. The caller wanted her to send $500 or she could be arrested for fraud. She asked me to listen, and it was an obvious scam. And then other employees got similar calls from people claiming to be with the IRS and different governmental agencies, demanding money. I think you should address these issues as older people are often too trusting. Thanks, Terry.”

Slam the Scam

“Sadly, we hear about these scams on a daily basis,” said Washington D.C.-based public affairs specialist, Nilsa Henriquez, in the press office of the Social Security Administration. She added, “March 7 is Slam the Scam Day, and with the help of the Office of Inspector General and the Federal Trade Commission, we explain to the public how these scams work and ways of protecting yourself from losing personal information and your money.”

Nilsa outlined the “sophisticated tactics scammers are using.”

(1) These people are very convincing, playing on your emotions and fear–scaring you, so that you act without thinking, and into revealing personal information or sending them money.

They pretend to be from an agency or company you know, such as Social Security, the IRS, even your local power and water utility. They pressure you into thinking there is a problem requiring a cash payment, via gift, pre-paid debit cards, crypto-currency or wire transfers.

Your fear is their best friend, as there is usually a threat of being arrested if you do not comply.

(2) If you get one of these calls, emails or letters, and anyone can, regardless of their age, first, remain calm and ignore the messages.

Often it starts with a phone call, email or a text claiming that you or a family member received an overpayment requiring an immediate refund or they will be arrested. They want you to act quickly, so remain calm and do not speak with the caller.

Also, do not click on any links in an email.

Using spoofed numbers, scammers will often use names of employees at Social Security or OIG (Office of Inspector General) so it looks as if the call is legit.

No governmental agency will ask you for cash, gift cards, wire transfers, pre-paid debit cards or crypto-currency.

(3) If someone gets one of these calls, texts, emails or letters, immediately report it.

We want to know when someone has become a target of these scammers or has even been scammed. Go online and file a report with the Office of Inspector General at: oig.ssa.gov. Our website is ssa.gov .

Report the scam and share this information with friends and family. This way it helps to Slam the Scam.

(4) How many people have been scammed?

The Federal Trade Commission said Social Security scams cost consumers more than $126 million in 2023, according to CBS News. This is a huge problem that we and other federal agencies are taking seriously. So often victims are afraid to admit to those closest to them what has occurred. Once you send money, the scammers know who they can victimize again.

It is so sad hearing these stories of people who were frightened, that, without consulting anyone, just sent money or, even worse, revealed their Social Security number.

(5) Know the signs, the red flags of a scam, what we call “The four Ps.”

Scammers all share the same tactics, known as “The four Ps.” They Pretend, they say There is a Problem, they might say that you have won a Prize, they Pressure and, they want Payment.

Anytime you receive a call that ends up in asking you to send money, it is a scam. Social Security will never call, threaten or demand payment.

(6) Is my bank responsible to repay me if I was the victim of a scam?

In general banks are not responsible for voluntary payments you make, but are for unauthorized withdrawals. Users of the Zelle app have greater chances of being made whole. The Federal Trade Commission discusses several avenues you can pursue at https://consumer.ftc.gov/articles/what-do-if-you-were-scammed.

Concluding our interview, Nilsa underscored a clear give-away that you are dealing with a scammer:

“If you are instructed to tell no one about this call, go to your bank and withdraw cash, and say that it is to buy a car, hang up.”

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post How to recognize Social Security, IRS and other scams appeared first on Dennis Beaver.

“Bernie,” an adjuster for a major auto insurance company phoned, and described an insurance claim “that would be a great story for your column.”

I had to control myself from laughing as she explained what happened.

Apparently “Carol’s” work truck was stolen under “highly suspicious circumstances, and I suspect she was given some very bad advice. I don’t want to report her for making a fraudulent claim, as I am about to retire, and this could tie me up for quite a while if law enforcement is involved.

“May I have her speak with you? Perhaps you can help her see how she is skating on thin ice and may wish to drop the claim.”

Within a few minutes, I was on the phone with her.

“So, tell me about your stolen truck.”

“It was parked outside our office. Two guys jumped in and drove it away. I am really angry because it had a tracking device that had stopped functioning. If it were working, I could have notified the police as to where it was, and I want to sue the car dealer who installed it and the device manufacturer. I lost my tools and $20,000.”

“How did they get your truck started?”

“My keys were in it, and it was unlocked. My purse was on the front seat.”

“You mean there was $20,000 in your purse, in an unlocked vehicle with the keys in it?”

“Yes, but the money was in the glove box. It was to pay my employees.”

“You pay them in cash? Why?”

“I hire people standing outside of Home Depot.”

“And you also make no deductions for taxes, Social Security, and you have no workers’ compensation insurance. Right?”

“Right.”

Tracking devices and their damages exclusion

Warranties for every tracking device I’ve ever seen are perfect examples of “the big print giveth, and the fine print taketh away.”

Manufacturers and car dealers that sell vehicles with built-in devices or add-ons, almost always limit their liability to repair or replacement and exclude consequential damages, including loss of the vehicle, its contents or lost business income.

I explained these warranty exclusions to her, adding, “Neither I nor your claims adjuster believe you. This has ‘insurance fraud’ written all over it, as no one in their right mind leaves $20,000 in an unlocked vehicle with the keys in it. If that is true, you invited the theft, and that could also be the basis to deny the claim.”

At that point, she began screaming, “You’re a no-good lawyer. A lawyer should believe their client! Besides, I have plenty of money, and don’t need this crap anyway.”

My final statement to her was, “If you pursue this claim, from my experience, expect a visit from law enforcement and possible prosecution for insurance fraud. Additionally, you face potential cancellation of your auto and business insurance, or huge rate increases.”

Insurance adjusters give their opinions

I ran Carol’s story by experienced claims adjusters from three separate auto and business insurance carriers. Each described similar claims they have handled, but without the added element of a vehicle-tracking device.

All three found Carol’s story to be “completely unbelievable.” Each underscored they would have referred this to their company’s Special Investigation Unit, as it falls into the “hard fraud” category, where someone comes up with a plan to create an incident so that they can claim a payout from their insurance company.

They all underscored that her adjuster, Bernie, was doing her a tremendous favor by not immediately escalating the claim to his company’s fraud unit.

Interestingly, one adjuster shared a “gotcha” tactic used by her company in which they issue a check to the insured, and when they come into the claims office to pick it up, law enforcement is waiting, as the prima facie elements of a felony were established.

She noted how the fraudsters go from smiles to utter disbelief when they’re arrested.

Insight from an insurance broker

I reviewed Carol’s claim with a friend of this column, Los Angeles-based insurance broker Karl Susman, who is an expert witness in lawsuits involving coverage and agent malpractice issues.

Susman cautions anyone thinking of making a dubious or fraudulent claim: “Making a fraudulent or highly suspicious insurance claim can have long-lasting implications, as insurance companies file them with the National Insurance Crime Bureau’s Questionable Claims Database.

“This information stays active in their files for several years and can greatly impact the rates you will pay for insurance and, in the worst cases, if you can even obtain certain types of coverage.”

He adds, “Use common sense with your vehicles and property. We all have a duty to not increase a risk of loss or injury by being careless or negligent.”

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Today’s story will not only be of special interest to health care providers —physicians, chiropractors, physical therapists, and psychologists, who treat auto accident victims on a lien basis — but will offer suggestions on how not to deal with a deadbeat lawyer who is supposed to protect your bill.

And if you are wondering how often this happens, just ask Southern California attorney Shawn Steele, “Nationwide, over three-quarters of lawyers who handle personal cases on a lien basis flagrantly refuse to honor the lien — and in my experience, especially those attorneys who spend millions of dollars on television ads. Far too many health care professionals just don’t know what to do when they are stiffed, or their bill is cut to shreds.”

Reputation Matters

The last paragraph of an article I wrote several years ago, A Lawyer’s Reputation Begins in Law School, dealt with my classmate who tried to deny the entire first year Loyola law School class an important final exam study aid, and reads:

“Our reputation — with classmates who will become colleagues, partners and the judges before whom we will stand — is one of the most fragile things we possess. Handle it with care. Across my years of practice, I’ve found that most do.”

In the City of Good Neighbors — also known as Buffalo, New York — resides “Eric” an attorney who doesn’t care much about protecting his own reputation as much as fattening his wallet by attempting to steal personal injury settlement funds intended to pay for his client’s medical treatment.

Eric finally agreed to pay, a result of the doctor’s new office manager “Kitty’s” outrage upon discovering Eric’s deceit. In researching how to deal with a thief who is a member of the New York State Bar Association, she found my Feb. 8, 2019 article, When Lawyers Refuse to Pay a Doctor’s Bill.

She phoned me — and to quote from the 1980s TV show The A-Team, “I love it when a plan comes together.”

Because typically when a lawyer, or in my case, a lawyer-journalist, calls someone who has not performed under their contract, things happen afterward. I told Kitty that I would phone Eric and talk to him, as the bare fact of my call should prompt him to either pay up or provide proof of payment.

Lack of Medical Insurance – Letter of Protection

In mid-2019, “Rocky” was stopped for a red light and rear-ended by a driver found to be at fault by the Buffalo Police Department. The collision resulted in a worsening of his spinal stenosis, and extreme pain. He had no health or auto med-pay insurance, but hired Eric, who was able to get pain specialist “Dr. S” to treat him based on a “Letter of Protection.”

The letter read:

“Our office will protect the interests of all medical providers who agree to wait for payment until such time as the case is settled.”

Case Settles – Where’s Our Money?

As often happens, the insurance company representing the at-fault driver refused to make a reasonable offer, the matter was litigated and along came COVID-19, postponing a final settlement until mid-2022. Then things got interesting.

Kitty sent me correspondence and phone messages from Eric’s office claiming that the bill had been paid, but no proof — no canceled check — was produced.

“We were given a host of excuses and promises to have payment next week, and next week and next week, until I was fed up and filed a complaint with the New York State Bar and called you, Mr. Beaver,” Kitty said.

“Hi, Eric, I’m doing a story on lawyers who stiff doctors — can you help me?”

What motivated me was Kitty’s sense of fundamental morality, right and wrong, plus my contempt for members of the legal profession who are just plain thieves.

And when I phoned Eric, explaining that I was looking into what appeared to be a case of a lawyer who failed to keep his word, it was clear I was dealing with an indignant thief who got caught.

He was laughable.

His excuse? “It’s the patient’s bill. The doctor should get his money from Rocky.”

But Rocky spoke with you and you promised to pay the bill, months ago, so where’s the doctor’s money?

Eric then said, “Well, possibly we overlooked payment but I will take care of it next week and you can tell them that. But don’t dare use my name in a story!”

“I never use real names, without permission, so don’t worry, Eric, and certainly don’t worry one bit about the fact that I am looking at letters from you promising to pay the bill next week. Several letters all saying the same thing.”

Kitty phoned me after that phone call. “He called my boss, and promised to pay us. But if he does not, what should we do?”

“You have lodged a complaint with the State Bar, so file against his law firm in Small Claims Court. Lawyers hate both things, and a check should magically appear. I also recommended following the suggestions in the previously mentioned article.”

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If Southern California-based family nurse practitioner Joe Torres had read Fool me Once, by Kelly Richmond Pope, he and I would never have spoken. He also would not have lost thousands of dollars in an “overpayment” scam that began when he was with a patient and his laptop screen froze.

I’ll come back to Joe’s all-too-common story in a moment, but I would like to offer this suggestion if you are thinking about a gift for a high school or university graduate — really anyone who wants to learn how to protect their money.

Let that gift be one of the most useful books they could ever own. Fool me Once provides keys to avoid being taken by the con artists and thieves who roam the earth.

With elder financial abuse so prevalent, Fool me Once shows my older readers and their children the signs that mom or dad aren’t okay.

“Said they were from My Bank”

“I was at work,” Joe wrote, “using my laptop, seeing patients, when my screen froze and a message stated that it has a virus and to call a number. I did, and a man said he was with my bank and for $400 he can give me antiviral protection on my computer so I can use it. I sent the $400 using a credit card.

“Immediately, he showed my debit card number, said that I paid too much and he will send $200 back to my bank account. Since I never use the card, I thought he was an employee of my bank as he had the card’s number.

“Somehow $44,200 appeared in my account! He instructed me to wire him the extra money and if I do it right away, he would give me $70 and five years of antiviral protection.

“I was trying to be honest and I wired $43,930 the same day. The next day, I realized this was a scam So, I went to my bank’s closest branch and changed my debit card number.”

Joe Discovers No Safeguard from His Bank

Management at his bank said, “You owe us $44,200!”

“I never received an alert via text, email, or mail, of the movement of the money from my home equity line of credit to my bank account. This was not right, as I but never used it.

If I would have been alerted, I would have immediately canceled or not sent the wire.”

Overpayment scammers pressure the victim to “refund” money “mistakenly” placed in their account, but in reality, it isn’t there.

Merely because an account shows an amount of money deposited does not mean the funds are really there, as it could take days for deposits to actually clear and be fully credited. This is another tool scammers use to convince the victim that an overpayment was made.

Upon receiving Joe’s letter, I contacted an executive in the corporate office of his bank who promised to “escalate” his case.

Despite leaving voicemails for her, asking “Don’t you have some safeguard in place to stop suspicious wires — sending money overseas — from an account that never had activity, and explore the possibility of a scam with your customer?”

I am still waiting for a response.

Joe’s letter concluded, “They need to fix this problem. I want my money back. I should not have to pay for their mistake.”

He gave me permission to use his real name, as “I want people to realize how easily they can be swindled and you can’t trust your bank to prevent this known fraud from taking place.”

Bank executives Silent

Can financial institutions prevent money from being wired? You bet they can. And while it is beyond the scope of this story, they have an important role to prevent money laundering and must be alert to potential fraudulent transactions.

“When a wire transaction is outside of a customer’s profile, it should be stopped and the customer asked to come into the bank, if possible. That would appear to be the case with Joe,” said “Banker X,” from a business bank, in my town who asked that both she and her employer remain anonymous.

“We have prevented similar scams from succeeding, as our systems are designed to look for and alert us to unusual customer transactions,” she pointed out.

Interestingly, I ran these facts by press relations and bank officers at a number of banks across America, asking, “Do you have safeguards that would have stopped Joe’s wire from going through, giving time to investigate activity on an account that had never been used?”

Not one bank officer would comment and most never returned my calls. In law, their silence can be seen as an adoptive admission.

Investment Firms Have Safeguards

However, representatives of major investment houses said “Yes, we have algorithms that are looking for the kind of thing that Joe was doing — suddenly wiring over $40,000 from an account he never used before. Everything comes to a halt, and we talk with our customer to see if is legit, or if they are a scam victim.”

One explained, “These scams succeed due to a sense of trust, wanting to do the right thing, and pressure to act immediately. Had Joe taken a step back and actually gone to his bank before wiring the money, the crooks would have lost.”

So, what are Joe’s remedies? I ran this by several attorneys who sue banks, and all agreed that this is a non-starter. They recommended trying to find a tax deduction of some type.

To protect yourself from bank fraud and other scams, visit the Consumer Financial Protection Bureau (CFPB) and find more tips in the article Banking Scams: Beware Fraudsters Impersonating Your Bank.

The post In an overpayment scam, your bank could be a thief’s best friend appeared first on Dennis Beaver.

For anyone who claims injuries from an accident or owns or rents insured real property, should it suffer damage or a theft loss, there is always a chance that you will be required to attend an Examination under Oath (EUO) by a claims adjuster or an insurance company attorney.

If requested, you must assume the insurance company suspects fraud or has other concerns.

Failure to participate can result in your claim being dismissed or the matter referred to law enforcement if there is a suspicion of insurance fraud.

Today’s story is about one such case – a fact situation so unique that it could be the basis of a motion picture. It began in Southern California when the Santa Ana winds were howling.

One of the most violent and dramatic wind events in the United States, known as the Santa Anas, occur usually during the months of October to March. These hot and dry winds can reach hurricane speeds, toppling utility poles, uprooting trees, knocking over tractor trailers and cutting power.

They also set off burglar alarms as Dr. “K” would discover.

Adored By His Patients

In the small, remote Southern California town where he practiced medicine as a primary care physician and cardiologist Dr. “K” was adored by his patients.

He was one of the many foreign-trained doctors so vital to our health care system, often working in towns that otherwise would lack a physician.

One Friday Night

One Friday night the Santa Ana winds were howling and Dr. K’s burglar alarm was set off by a broken glass detector when a tree branch flew onto the office front door, shattering the glass – which remained in place.

He and his office manager were notified by his alarm company, went to the office, and met a deputy sheriff. A brief, superficial inspection appeared to show that everything inside was untouched.

The next day, he returned to the office and “found that 15 wearable cardiac Holter monitors – average price for each one $5,000 – were missing,” according to the insurance claim he filed.

Attend An Examination Under Oath Or Claim Denied

Several weeks later, I was contacted by K’s colleague a day before a claims adjuster was to conduct the doctor’s EUO. “Dennis, he postponed it several times and the insurance company said they will deny his claim if he does not meet with them and have a lawyer present. As a favor to me, please help him. I have no reason to suspect that he did anything wrong.”

I agreed and drove to the small town in a rural part of California that I had never even heard of.

Claims Adjuster and Company Attorney Took Me Aside

Before the session began, “Ed,” the claims adjuster and insurance company’s attorney, “Paul,” asked to speak with me in private:

“Mr. Beaver, Dr. K informed us that you would be here so that his claim would not be rejected. We want you to know that no punitive action will be taken against him and this will be explained following the examination.”

Then the doctor was sworn in and the examination began.

Paul: “Doctor, would you please tell us, step by step, everything that you did that evening and the following day of the wind event that set off your alarm system.”

Doctor K explained that he inspected his office briefly that evening and then returned the next day for a more thorough search to see if anything was taken or damaged.

Next, the claims adjuster spoke:

“Doctor, I am going to show you a video that was recorded by the security system on an office building across the street from your medical office and ask if you can identify the person in the video and what he was doing.

They played the video. In broad daylight, it showed Dr. K enter his office and come out with a box containing objects that had what appeared to be wires or loose straps on the sides of the box. The person made three trips and his face was clearly visible.

“Can you tell me who that person shown in the video is?” asked the claims adjuster.

His head lowered, covering his face with his hands, Dr. K said, “That’s me. I am so sorry.”

A Good Deed Rewarded

Paul, the attorney, spoke next:

“We knew all along what had taken place but obtained permission from the claims supervisor to close this case – not pay the claim – and not go after you for insurance fraud.

And why?

“It is because Ed and I are brothers and grew up in this town but moved away before you came here.

“Years ago, we were both away at college. Our grandfather had chest pains and grandma drove him to your office, as an ambulance would take too long. Pops was having a heart attack. His heart stopped and you shocked him back to life!

“There is no way that we could do anything that would take you from us and this little town where we grew up. You have done so much for so many people. I don’t know why you did it, but the planets are all aligned now, and I am confident you have learned a lesson.”

And there sat my client, sobbing, apologizing.

There was something so powerful, so touching and what Paul said, so charitable, so right.

It has been years. Yes, the planets were indeed all in alignment that day.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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