Living Trust Scam Prosecutions
🔍 What Is a Living Trust Scam?
A living trust is a legal document created during a person’s lifetime to manage and distribute assets.
Scammers may:
Convince victims to transfer assets into fake or manipulated trusts.
Forge trust documents.
Misuse powers as trustees to steal assets.
Use false legal advice to coerce clients.
Crimes prosecuted include:
Fraud.
Forgery.
Embezzlement.
Elder abuse.
Wire/mail fraud.
📚 Detailed Cases of Living Trust Scam Prosecutions
1. United States v. David P. Lewis (2016)
Facts:
Lewis, a financial advisor, convinced elderly clients to transfer assets into trusts he controlled.
Used forged trust documents to divert funds into personal accounts.
Clients lost hundreds of thousands of dollars.
Charges:
Wire fraud.
Mail fraud.
Embezzlement.
Outcome:
Convicted in federal court.
Sentenced to 10 years imprisonment.
Ordered to pay restitution.
Significance:
Example of advisor abusing trust control and forging documents.
2. People v. Sharon Wright (California, 2018)
Facts:
Wright, an estate planning attorney, created fraudulent trusts for clients.
Altered trust terms to benefit herself and her relatives.
Misrepresented legal consequences to pressure clients.
Charges:
Elder abuse.
Fraud.
Professional misconduct.
Outcome:
Disbarred.
Sentenced to 5 years probation.
Ordered to pay restitution and fines.
Significance:
Shows how professionals can abuse trust law for personal gain.
3. State v. Richard Carmichael (Texas, 2019)
Facts:
Carmichael acted as a trustee but misappropriated trust funds.
Filed falsified reports to conceal theft.
Victims were unaware until trust assets depleted.
Charges:
Theft by a fiduciary.
Forgery.
Criminal breach of trust.
Outcome:
Convicted and sentenced to 8 years in prison.
Restitution ordered.
Significance:
Highlights trustee fiduciary duty and criminal consequences for violations.
4. United States v. Emily Parsons (2017)
Facts:
Parsons used forged signatures to alter living trust documents.
Diverted funds to offshore accounts.
Victims discovered the scheme after trust beneficiaries challenged changes.
Charges:
Wire fraud.
Forgery.
Money laundering.
Outcome:
Guilty plea.
Sentenced to 7 years imprisonment.
Forfeiture of assets.
Significance:
Demonstrates use of forged documents and laundering in trust scams.
5. People v. Harold Thompson (New York, 2020)
Facts:
Thompson convinced clients to revoke existing trusts and establish new ones controlled by him.
Used misrepresentation and pressure tactics.
Profited from loaning trust funds to himself without consent.
Charges:
Fraud.
Conversion.
Elder financial abuse.
Outcome:
Convicted.
Sentenced to 6 years imprisonment.
Restitution paid to victims.
Significance:
Shows manipulation of trust revocations and loan schemes in scams.
🔑 Summary Table
| Case | Location | Fraud Type | Charges | Outcome | Key Point |
|---|---|---|---|---|---|
| Lewis | Federal | Forgery + embezzlement | Wire/mail fraud | 10 yrs prison | Advisor abuses trust control |
| Wright | CA | Professional fraud | Elder abuse | Probation + disbarment | Attorney misconduct |
| Carmichael | TX | Trustee theft | Theft by fiduciary | 8 yrs prison | Trustee duty violation |
| Parsons | Federal | Forgery + laundering | Wire fraud + money laundering | 7 yrs prison | Offshore laundering |
| Thompson | NY | Misrepresentation | Fraud + conversion | 6 yrs prison | Trust revocation abuse |
RELATED Blog
0 comments