Three Coloradans, including a former member of the National Academy of Elder Law Attorneys, are guilty of consumer fraud for selling bogus Medicaid plans to unsuspecting seniors. Colorado v. Mason, et al.(El Paso Cty. Dist. Ct., No. 01CV3219, Sept. 12, 2003).
Around 1996, elder law attorney Robert Mason and an associate, Claude Ray Page, began selling estate plans. Through newspaper ads and direct mail, they invited elderly customers to attend free estate planning seminars held at local hotels throughout Colorado. Harry Hochstetler joined the enterprise in 2000. The three promised that the estate plan they were selling would qualify buyers for Medicaid coverage of nursing home costs regardless of the buyers' income or assets, and would avoid any asset spend-downs or liens placed on buyers' homes. Attorney Mason's membership in the National Academy of Elder Law Attorneys was used to encourage participation in the seminars, and Mr. Page misled customers into believing he was an attorney. More than 700 consumers paid between $2,000 and $3,000 each for the estate plans.
Colorado Attorney General Ken Salazar filed a complaint against Mason, Page and Hochstetler for consumer fraud, alleging that the estate plans accomplished little of what they promised. On the eve of trial, Mr. Page confessed liability and stipulated to an award of damages and civil penalties.
An El Paso County District Judge ruled that Attorney Mason and Mr. Hochstetler had violated the Colorado Consumer Protection Act and were liable for damages, penalties and attorney fees. "Defendants," the court wrote, ". . . knowingly made false representations as to the characteristics and benefits of the estate plan they were presenting and in the course of this business failed to disclose material information concerning goods or services." The defendants could be fined up to $10,000 for each violation of the Consumer Protection Act, since all of their victims were over the age of 60. In addition, the court will be asked to order the defendants to pay full restitution to all of the victims. Attorney Mason and Mr. Page have declared bankruptcy.
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