Colorado Estate Planning News

Attorney General Ken Salazar Alleging Their Involvement In A Fraudulent Estate Planning Scheme Have Agreed To The Terms Of An Injunction

The State's October 2001 lawsuit alleges that certain promotions and representations made in conjunction with estate planning seminars hosted by the defendants around the state are fraudulent and deceptive business practices under the provisions of the Colorado Consumer Protection Act.

The complaint asserts that Mason, Page and Hochstetler have engaged in the sale of "Family Asset Protection Plans" ("Estate Plans") which they falsely represented will shelter consumer's assets, therefore qualifying them for Medicaid payment of nursing home care expenses. The defendants are alleged to have charged as much as $2,500 for an estate plan they knew would not accomplish what they told the consumers it would.

The State alleges that defendants targeted older consumers, through direct mail and newspaper advertisements, and invited them to a "free seminar" on estate planning.

The State alleges defendants represented that they could qualify consumers for Medicaid even if their income and assets exceeded the statutory limits for Medicaid eligibility. A "revocable living trust" is a primary feature of the plan touted by defendants.

Consumers who subsequently incurred nursing home costs were surprised to learn that they were not qualified for Medicaid. Consumers also discovered that they must pay for their nursing home care with their own funds or with long term care insurance, despite the assurances of the defendants that the Estate Plan would qualify them for Medicaid.

The activities of the defendants were brought to the attention of the Attorney General's Office through inquiries and investigative assistance from district attorneys offices, including the District Attorneys for El Paso, Chaffee, Fremont, and Pueblo Counties, and other law enforcement and other agencies, including the Fremont County Sheriff's Office, the Fremont County Department of Social Services, and the La Junta, Burlington and Pueblo Police Departments.

In addition to the injunction order, the Attorney General's Office is seeking restitution to injured consumers, disgorgement of defendants' unlawfully obtained profits, penalties of $10,000 per violation for unlawful actions committed against the elderly, as provided by law, and attorney fees and costs.

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