WEBVTT NOTE duration:"00:13:45.8740000" NOTE language:en-us NOTE Confidence: 0.8498213 00:00:02.660 --> 00:00:07.126 My father passed away in 2015 from NOTE Confidence: 0.8498213 00:00:07.126 --> 00:00:12.410 pancreatic cancer. He left his estate. NOTE Confidence: 0.8498213 00:00:12.410 --> 00:00:15.020 And he put it into a trust, a NOTE Confidence: 0.83781093 00:00:15.020 --> 00:00:16.934 family trust. Gabe is the only NOTE Confidence: 0.83781093 00:00:16.934 --> 00:00:18.600 beneficiary of his father's trust. NOTE Confidence: 0.83781093 00:00:18.600 --> 00:00:20.777 Because of this, he enlisted the help NOTE Confidence: 0.83781093 00:00:20.777 --> 00:00:23.490 of a family friend to serve as trustee. NOTE Confidence: 0.83781093 00:00:23.490 --> 00:00:25.125 The person who helps disperse NOTE Confidence: 0.83781093 00:00:25.125 --> 00:00:26.755 the trust, how Gabe's dad, NOTE Confidence: 0.83781093 00:00:26.755 --> 00:00:28.705 the maker of the trust intended. NOTE Confidence: 0.83781093 00:00:28.710 --> 00:00:30.010 But when life got NOTE Confidence: 0.83781093 00:00:30.010 --> 00:00:32.299 busy for the trustee, this person decided NOTE Confidence: 0.83781093 00:00:32.300 --> 00:00:34.120 we gotta find any trustee game decided NOTE Confidence: 0.83781093 00:00:34.120 --> 00:00:36.480 to hire A fiduciary fiduciary's do a NOTE Confidence: 0.83781093 00:00:36.480 --> 00:00:38.380 number of things including overseeing NOTE Confidence: 0.83781093 00:00:38.380 --> 00:00:40.765 other peoples money in trusts and estates. NOTE Confidence: 0.83781093 00:00:40.770 --> 00:00:42.166 California law says professional NOTE Confidence: 0.83781093 00:00:42.166 --> 00:00:44.260 fiduciaries can act as trustee power NOTE Confidence: 0.83781093 00:00:44.316 --> 00:00:46.140 of attorney for health and finances. NOTE Confidence: 0.83781093 00:00:46.140 --> 00:00:48.160 As well as service Conservatore. NOTE Confidence: 0.83781093 00:00:48.160 --> 00:00:50.728 Overall, Fiduciary's job is to serve NOTE Confidence: 0.83781093 00:00:50.728 --> 00:00:54.218 as a third party and work on behalf of NOTE Confidence: 0.8451729 00:00:54.220 --> 00:00:55.836 their clients best interests NOTE Confidence: 0.8451729 00:00:55.836 --> 00:00:57.856 and that's when we found NOTE Confidence: 0.8451729 00:00:57.860 --> 00:01:00.674 an angle, Gabe said. He picked Donnick, NOTE Confidence: 0.8451729 00:01:00.680 --> 00:01:03.081 held a service fiduciary because she sat NOTE Confidence: 0.8451729 00:01:03.081 --> 00:01:05.253 on the professional Fiduciary Bureau's NOTE Confidence: 0.8451729 00:01:05.253 --> 00:01:07.549 Advisory committee, a position appointed NOTE Confidence: 0.8451729 00:01:07.550 --> 00:01:10.378 by the governor. So we felt pretty NOTE Confidence: 0.8451729 00:01:10.380 --> 00:01:11.968 kredible their professional fiduciary NOTE Confidence: 0.8451729 00:01:11.968 --> 00:01:14.350 Bureau was created in 2007 and NOTE Confidence: 0.8451729 00:01:14.410 --> 00:01:16.792 legislation that was sparked after an NOTE Confidence: 0.8451729 00:01:16.792 --> 00:01:18.868 LA Times investigation exposed multiple NOTE Confidence: 0.8451729 00:01:18.868 --> 00:01:21.008 abuse is happening by conservators. NOTE Confidence: 0.8451729 00:01:21.010 --> 00:01:22.990 It's a huge nationwide problem, NOTE Confidence: 0.8451729 00:01:22.990 --> 00:01:24.176 abused by fiduciaries, NOTE Confidence: 0.8451729 00:01:24.176 --> 00:01:25.758 particularly conservators is something NOTE Confidence: 0.8451729 00:01:25.758 --> 00:01:27.738 Carol Herman has been tracking. NOTE Confidence: 0.8451729 00:01:27.740 --> 00:01:30.116 She's the founder of the National NOTE Confidence: 0.8451729 00:01:30.116 --> 00:01:31.304 Nonprofit Corporation Foundation, NOTE Confidence: 0.8451729 00:01:31.310 --> 00:01:32.498 aiding the elderly. NOTE Confidence: 0.8451729 00:01:32.498 --> 00:01:35.270 When I've done this work over 30 NOTE Confidence: 0.8455183 00:01:35.270 --> 00:01:38.035 years, and I've been aware of this NOTE Confidence: 0.8455183 00:01:38.035 --> 00:01:40.016 public garden, the guardianships in NOTE Confidence: 0.8455183 00:01:40.016 --> 00:01:42.334 the conservators for years, and I've NOTE Confidence: 0.8455183 00:01:42.334 --> 00:01:45.170 got nine banker boxes full of cases. NOTE Confidence: 0.8455183 00:01:45.170 --> 00:01:47.390 That's why she was all for NOTE Confidence: 0.8455183 00:01:47.390 --> 00:01:49.920 the creation of the Bureau. I NOTE Confidence: 0.8455183 00:01:49.920 --> 00:01:52.380 was instrumental in getting the fiduciary NOTE Confidence: 0.8455183 00:01:52.380 --> 00:01:54.020 board established in California. NOTE Confidence: 0.8455183 00:01:54.020 --> 00:01:56.085 I testified at the legislature NOTE Confidence: 0.8455183 00:01:56.085 --> 00:01:58.150 with my experience and why NOTE Confidence: 0.8455183 00:01:58.225 --> 00:02:00.395 they felt there was a need for NOTE Confidence: 0.8495792 00:02:00.400 --> 00:02:01.896 it. According to the NOTE Confidence: 0.8495792 00:02:01.896 --> 00:02:03.018 Professional Fiduciaries Act, NOTE Confidence: 0.8495792 00:02:03.020 --> 00:02:05.505 the Bureau was created to regulate non NOTE Confidence: 0.8495792 00:02:05.505 --> 00:02:07.020 family member professional fiduciaries NOTE Confidence: 0.8495792 00:02:07.020 --> 00:02:08.572 and professional fiduciaries handle NOTE Confidence: 0.8495792 00:02:08.572 --> 00:02:10.900 a lot of other people's money. NOTE Confidence: 0.8495792 00:02:10.900 --> 00:02:13.078 The Bureau lists each licensed fiduciary NOTE Confidence: 0.8495792 00:02:13.078 --> 00:02:15.399 and how much money they oversee. NOTE Confidence: 0.8495792 00:02:15.400 --> 00:02:17.320 We went through the bureaus NOTE Confidence: 0.8495792 00:02:17.320 --> 00:02:19.520 online records and added it up. NOTE Confidence: 0.8495792 00:02:19.520 --> 00:02:22.192 It estimated to just under $13 billion of NOTE Confidence: 0.8495792 00:02:22.192 --> 00:02:24.480 other people's assets fiduciaries handle. NOTE Confidence: 0.8495792 00:02:24.480 --> 00:02:25.544 That's just in California. NOTE Confidence: 0.8495792 00:02:25.544 --> 00:02:26.874 While the Bureau tracks the NOTE Confidence: 0.8495792 00:02:26.874 --> 00:02:28.029 money fiduciary's handle, NOTE Confidence: 0.8495792 00:02:28.030 --> 00:02:30.053 they don't keep tallies on the amount NOTE Confidence: 0.8495792 00:02:30.053 --> 00:02:32.179 of clients they have under their care. NOTE Confidence: 0.8495792 00:02:32.180 --> 00:02:33.059 I'd want to NOTE Confidence: 0.86176145 00:02:33.060 --> 00:02:35.139 know how many people, more than how NOTE Confidence: 0.86176145 00:02:35.140 --> 00:02:36.320 much money this is NOTE Confidence: 0.86176145 00:02:36.320 --> 00:02:37.795 the issue where they're putting NOTE Confidence: 0.86176145 00:02:37.795 --> 00:02:38.975 dollars above human beings. NOTE Confidence: 0.86176145 00:02:38.980 --> 00:02:41.176 It's a lot of money in power and the NOTE Confidence: 0.86176145 00:02:41.176 --> 00:02:42.501 establishment of the Professional NOTE Confidence: 0.86176145 00:02:42.501 --> 00:02:44.211 Fiduciary Bureau was intended to NOTE Confidence: 0.86176145 00:02:44.211 --> 00:02:45.788 create oversight, so I thought, NOTE Confidence: 0.86176145 00:02:45.790 --> 00:02:47.082 well, this is great. NOTE Confidence: 0.86176145 00:02:47.082 --> 00:02:48.697 There's an agency within the NOTE Confidence: 0.86176145 00:02:48.697 --> 00:02:50.528 government that if you have a problem, NOTE Confidence: 0.86176145 00:02:50.530 --> 00:02:52.892 you can file a complaint in the investors, NOTE Confidence: 0.86176145 00:02:52.892 --> 00:02:54.788 go in and and investigate these. NOTE Confidence: 0.86176145 00:02:54.790 --> 00:02:56.210 Conservatorship cases to see NOTE Confidence: 0.86176145 00:02:56.210 --> 00:02:57.975 what's really going on here. NOTE Confidence: 0.86176145 00:02:57.975 --> 00:02:59.390 Well, it didn't happen. NOTE Confidence: 0.8657181 00:03:02.660 --> 00:03:06.620 I believe I was the first person in the state NOTE Confidence: 0.8657181 00:03:06.620 --> 00:03:08.100 to file official complaints. NOTE Confidence: 0.8657181 00:03:08.100 --> 00:03:09.950 The 118 page detailed complaint NOTE Confidence: 0.8657181 00:03:09.950 --> 00:03:11.770 included extensive court documents, NOTE Confidence: 0.8657181 00:03:11.770 --> 00:03:12.622 doctors, evaluations, NOTE Confidence: 0.8657181 00:03:12.622 --> 00:03:14.752 and attorney correspondence on a NOTE Confidence: 0.8657181 00:03:14.752 --> 00:03:16.774 case we've covered previously in NOTE Confidence: 0.8657181 00:03:16.774 --> 00:03:18.808 our investigation that of Mary Jane NOTE Confidence: 0.8657181 00:03:18.808 --> 00:03:21.270 Man very well documented. You know, NOTE Confidence: 0.8657181 00:03:21.270 --> 00:03:23.250 list of everything that happened. NOTE Confidence: 0.8657181 00:03:23.250 --> 00:03:25.230 Statements under penalty of perjury. NOTE Confidence: 0.8657181 00:03:25.230 --> 00:03:27.210 She believes it was the NOTE Confidence: 0.8657181 00:03:27.210 --> 00:03:29.586 first complaint ever filed in California. NOTE Confidence: 0.8657181 00:03:29.590 --> 00:03:31.570 It was against a fiduciary. NOTE Confidence: 0.8657181 00:03:31.570 --> 00:03:33.270 We've introduced you to NOTE Confidence: 0.8657181 00:03:33.270 --> 00:03:34.545 in our investigation. NOTE Confidence: 0.8657181 00:03:34.550 --> 00:03:36.018 Carolyn Young, you know. NOTE Confidence: 0.8657181 00:03:36.020 --> 00:03:38.588 This was a lot of work to NOTE Confidence: 0.8603923 00:03:38.590 --> 00:03:40.054 put a complaint together NOTE Confidence: 0.8603923 00:03:40.054 --> 00:03:41.518 and nobody did anything NOTE Confidence: 0.8603923 00:03:41.520 --> 00:03:43.632 about Carol. Says she never received NOTE Confidence: 0.8603923 00:03:43.632 --> 00:03:45.929 any written response to her complaint. NOTE Confidence: 0.8603923 00:03:45.930 --> 00:03:48.494 She said on October 18th, 2011 /, NOTE Confidence: 0.8603923 00:03:48.494 --> 00:03:51.430 2 1/2 years after she filed the complaint, NOTE Confidence: 0.8603923 00:03:51.430 --> 00:03:53.990 she got a phone call from the PFB NOTE Confidence: 0.8603923 00:03:53.990 --> 00:03:56.199 saying they closed the complaint. NOTE Confidence: 0.8603923 00:03:56.200 --> 00:03:58.474 While the PFB says every complaint NOTE Confidence: 0.8603923 00:03:58.474 --> 00:04:00.385 filed gets an acknowledgment letter NOTE Confidence: 0.8603923 00:04:00.385 --> 00:04:02.702 after 10 days long wait times for NOTE Confidence: 0.8603923 00:04:02.702 --> 00:04:04.748 resolutions is something we've heard. NOTE Confidence: 0.8603923 00:04:04.750 --> 00:04:06.652 Over and over again from multiple NOTE Confidence: 0.8603923 00:04:06.652 --> 00:04:07.920 people we've spoken with NOTE Confidence: 0.8603923 00:04:07.982 --> 00:04:09.569 throughout our investigation, NOTE Confidence: 0.8603923 00:04:09.570 --> 00:04:11.796 including Julie Doherty and I have NOTE Confidence: 0.8603923 00:04:11.796 --> 00:04:14.050 filed a complaint on the California NOTE Confidence: 0.8603923 00:04:14.050 --> 00:04:15.250 Professional Fiduciaries Bureau. NOTE Confidence: 0.8603923 00:04:15.250 --> 00:04:18.109 We film this interview in September of 2020. NOTE Confidence: 0.8603923 00:04:18.110 --> 00:04:19.442 It's now may 2021, NOTE Confidence: 0.8603923 00:04:19.442 --> 00:04:22.332 and Julie says she still has yet to NOTE Confidence: 0.8603923 00:04:22.332 --> 00:04:24.780 receive a decision or overall response, NOTE Confidence: 0.8603923 00:04:24.780 --> 00:04:26.635 according to the notes from NOTE Confidence: 0.8603923 00:04:26.635 --> 00:04:27.748 the bureaus meetings, NOTE Confidence: 0.8603923 00:04:27.750 --> 00:04:29.940 the PFI receives around 135 complaints NOTE Confidence: 0.8603923 00:04:29.940 --> 00:04:32.580 each year in a statement to us, NOTE Confidence: 0.8603923 00:04:32.580 --> 00:04:35.016 they said they investigate every complaint. NOTE Confidence: 0.8603923 00:04:35.020 --> 00:04:36.890 But when we dug deeper, NOTE Confidence: 0.8603923 00:04:36.890 --> 00:04:39.062 our investigation found the reason behind NOTE Confidence: 0.8603923 00:04:39.062 --> 00:04:41.380 the delay in response to complaints. NOTE Confidence: 0.8603923 00:04:41.380 --> 00:04:44.110 We requested a full list of every NOTE Confidence: 0.8603923 00:04:44.110 --> 00:04:46.238 employee that works for the PFB. NOTE Confidence: 0.8603923 00:04:46.240 --> 00:04:46.988 In response, NOTE Confidence: 0.8603923 00:04:46.988 --> 00:04:49.606 we got a staff list of three, NOTE Confidence: 0.8603923 00:04:49.610 --> 00:04:51.475 one being the person who NOTE Confidence: 0.8603923 00:04:51.475 --> 00:04:52.594 does investigations soulo. NOTE Confidence: 0.8603923 00:04:52.600 --> 00:04:54.838 This means the professional fiduciary Bureau, NOTE Confidence: 0.8603923 00:04:54.840 --> 00:04:57.090 the only state agency overseeing fiduciaries, NOTE Confidence: 0.8603923 00:04:57.090 --> 00:04:59.334 has only one person to investigate NOTE Confidence: 0.8603923 00:04:59.334 --> 00:05:00.830 hundreds of detailed complaints. NOTE Confidence: 0.8603923 00:05:00.830 --> 00:05:01.570 For three NOTE Confidence: 0.8582264 00:05:01.570 --> 00:05:03.134 years, there was 408 NOTE Confidence: 0.8582264 00:05:03.134 --> 00:05:05.089 complaints filed by the public. NOTE Confidence: 0.8582264 00:05:05.090 --> 00:05:07.030 Exactly 0 complaints we really NOTE Confidence: 0.8582264 00:05:07.030 --> 00:05:08.888 resulted in any disciplinary action. NOTE Confidence: 0.8582264 00:05:08.888 --> 00:05:11.690 I'm sorry I don't buy those numbers. NOTE Confidence: 0.8582264 00:05:11.690 --> 00:05:13.630 You do not get 408 NOTE Confidence: 0.8491993 00:05:13.630 --> 00:05:15.958 complaints from the public and not NOTE Confidence: 0.8491993 00:05:15.958 --> 00:05:18.280 one be a violation. Richard Calhoun NOTE Confidence: 0.8491993 00:05:18.280 --> 00:05:20.614 and Linda Kincaid are the cofounders NOTE Confidence: 0.8491993 00:05:20.614 --> 00:05:22.978 of Cedar it's downs for college NOTE Confidence: 0.8491993 00:05:22.978 --> 00:05:24.880 for elder and disability rights. NOTE Confidence: 0.8491993 00:05:24.880 --> 00:05:26.428 They founded the organization NOTE Confidence: 0.8491993 00:05:26.428 --> 00:05:28.363 after Linda's mother was placed NOTE Confidence: 0.8491993 00:05:28.363 --> 00:05:30.308 under a conservatorship in 2010. NOTE Confidence: 0.8491993 00:05:30.310 --> 00:05:32.245 Linda said it was physically NOTE Confidence: 0.8491993 00:05:32.245 --> 00:05:33.800 and financially abusive. She NOTE Confidence: 0.852165692857143 00:05:33.800 --> 00:05:36.856 was skin and bones. And we found out NOTE Confidence: 0.852165692857143 00:05:36.856 --> 00:05:39.457 in litigation that she wasn't getting NOTE Confidence: 0.85335225 00:05:39.460 --> 00:05:41.025 fed. They're worried with little NOTE Confidence: 0.85335225 00:05:41.025 --> 00:05:42.588 oversight. Nothing will change if NOTE Confidence: 0.85335225 00:05:42.590 --> 00:05:44.160 I don't change the system. NOTE Confidence: 0.85335225 00:05:44.160 --> 00:05:45.356 I'll be a victim. NOTE Confidence: 0.85335225 00:05:45.356 --> 00:05:47.150 I'd rather kill myself than be NOTE Confidence: 0.85335225 00:05:47.221 --> 00:05:49.159 a future target. The way the NOTE Confidence: 0.85335225 00:05:49.160 --> 00:05:51.344 system is now, since it's certain 2014, NOTE Confidence: 0.85335225 00:05:51.350 --> 00:05:53.228 they've made a name for themselves NOTE Confidence: 0.85335225 00:05:53.228 --> 00:05:55.109 and being strong, well known advocates NOTE Confidence: 0.85335225 00:05:55.109 --> 00:05:56.360 within California conservatorship. So NOTE Confidence: 0.85335225 00:05:56.360 --> 00:05:59.178 when they see us coming, they know what we're NOTE Confidence: 0.85335225 00:05:59.180 --> 00:06:00.176 there to talk about. NOTE Confidence: 0.85335225 00:06:00.176 --> 00:06:01.670 They monitor case after case of NOTE Confidence: 0.85335225 00:06:01.718 --> 00:06:03.248 Conservatorship's in California, NOTE Confidence: 0.85335225 00:06:03.250 --> 00:06:04.960 and one of their biggest concerns NOTE Confidence: 0.85335225 00:06:04.960 --> 00:06:06.937 is lack of oversight by the NOTE Confidence: 0.85335225 00:06:06.937 --> 00:06:08.110 Professional Fiduciary Bureau. NOTE Confidence: 0.85335225 00:06:08.110 --> 00:06:09.190 Especially regarding complaints. NOTE Confidence: 0.85335225 00:06:09.190 --> 00:06:10.270 In one case NOTE Confidence: 0.84623855 00:06:10.270 --> 00:06:12.790 a producer. He actually killed her client. NOTE Confidence: 0.84623855 00:06:12.790 --> 00:06:16.526 She withheld food and hydration and he died. NOTE Confidence: 0.84623855 00:06:16.530 --> 00:06:18.254 And the court ordered her to NOTE Confidence: 0.84623855 00:06:18.254 --> 00:06:19.402 restore food and hydration, NOTE Confidence: 0.84623855 00:06:19.402 --> 00:06:21.118 and she did after three days. NOTE Confidence: 0.84623855 00:06:21.120 --> 00:06:23.416 But it was too long and he died. NOTE Confidence: 0.84623855 00:06:23.420 --> 00:06:25.136 And I turned that into the NOTE Confidence: 0.84623855 00:06:25.136 --> 00:06:25.994 professional fiduciaries Bureau. NOTE Confidence: 0.84623855 00:06:26.000 --> 00:06:28.376 Every single one of those cases. NOTE Confidence: 0.84623855 00:06:28.380 --> 00:06:30.516 They found no violation of license. NOTE Confidence: 0.8559931 00:06:30.520 --> 00:06:31.904 That's because the professional NOTE Confidence: 0.8559931 00:06:31.904 --> 00:06:33.288 fiduciary Bureau does not NOTE Confidence: 0.8559931 00:06:33.288 --> 00:06:34.430 investigate criminal activity. NOTE Confidence: 0.8559931 00:06:34.430 --> 00:06:36.470 They say they don't do these NOTE Confidence: 0.8559931 00:06:36.470 --> 00:06:37.830 types of investigations because NOTE Confidence: 0.8559931 00:06:37.889 --> 00:06:39.417 there are licensing agency. NOTE Confidence: 0.8559931 00:06:39.420 --> 00:06:41.289 The Bureau told us that they are NOTE Confidence: 0.8559931 00:06:41.289 --> 00:06:43.210 not a law enforcement agency and NOTE Confidence: 0.8559931 00:06:43.210 --> 00:06:46.286 do not have the authority by law to NOTE Confidence: 0.8559931 00:06:46.286 --> 00:06:47.957 conduct criminal investigations. NOTE Confidence: 0.8559931 00:06:47.960 --> 00:06:50.810 If you believe a crime has a curd, NOTE Confidence: 0.8559931 00:06:50.810 --> 00:06:52.588 you should contact law enforcement NOTE Confidence: 0.8559931 00:06:52.590 --> 00:06:53.300 to submit NOTE Confidence: 0.8559931 00:06:53.300 --> 00:06:54.010 those allegations. NOTE Confidence: 0.8559931 00:06:54.010 --> 00:06:55.075 Law enforcement believes NOTE Confidence: 0.8559931 00:06:55.075 --> 00:06:56.495 that once you're conserved, NOTE Confidence: 0.8559931 00:06:56.500 --> 00:06:58.330 you no longer entitled to NOTE Confidence: 0.8559931 00:06:58.330 --> 00:06:59.428 law enforcement protection. NOTE Confidence: 0.8559931 00:06:59.430 --> 00:07:01.070 The law enforcement says, oh, NOTE Confidence: 0.8559931 00:07:01.070 --> 00:07:03.026 that goes to adult Protective Services, NOTE Confidence: 0.8559931 00:07:03.030 --> 00:07:04.234 which are social workers. NOTE Confidence: 0.8559931 00:07:04.234 --> 00:07:07.280 So you end up with less protection once you NOTE Confidence: 0.8473869 00:07:07.280 --> 00:07:08.870 turn 65. This means that when NOTE Confidence: 0.8473869 00:07:08.870 --> 00:07:10.880 abuse happens in a conservatorship, NOTE Confidence: 0.8473869 00:07:10.880 --> 00:07:12.620 the PFB will direct those concerned NOTE Confidence: 0.8473869 00:07:12.620 --> 00:07:14.616 about the abuse to law enforcement NOTE Confidence: 0.8473869 00:07:14.616 --> 00:07:16.432 and law enforcement, directs them NOTE Confidence: 0.8473869 00:07:16.432 --> 00:07:18.400 to adult Protective Services. And it NOTE Confidence: 0.8473869 00:07:18.400 --> 00:07:19.954 gets even more nuanced than that NOTE Confidence: 0.8473869 00:07:19.954 --> 00:07:21.448 because most of the conservatives NOTE Confidence: 0.8473869 00:07:21.448 --> 00:07:23.488 aren't facilities and adult Protective NOTE Confidence: 0.8473869 00:07:23.488 --> 00:07:25.733 Services only provide service for people NOTE Confidence: 0.8473869 00:07:25.733 --> 00:07:27.874 in the community, so they don't even NOTE Confidence: 0.8473869 00:07:27.874 --> 00:07:29.504 provide service in the facilities. NOTE Confidence: 0.8473869 00:07:29.510 --> 00:07:31.230 The PFB has never cited. NOTE Confidence: 0.8473869 00:07:31.230 --> 00:07:34.110 Any licensee for any issues related to care. NOTE Confidence: 0.8724061 00:07:34.110 --> 00:07:36.382 This is in spite of the Bureau being NOTE Confidence: 0.8724061 00:07:36.382 --> 00:07:37.909 created to regulate professional NOTE Confidence: 0.8724061 00:07:37.909 --> 00:07:40.585 fiduciaries and their code of ethics, NOTE Confidence: 0.8724061 00:07:40.590 --> 00:07:43.026 saying the protection of the public shall NOTE Confidence: 0.8724061 00:07:43.026 --> 00:07:45.629 be the highest priority for the Bureau, NOTE Confidence: 0.8724061 00:07:45.630 --> 00:07:47.877 as well as in the California Code NOTE Confidence: 0.8724061 00:07:47.877 --> 00:07:49.308 of Regulations that fiduciary NOTE Confidence: 0.8724061 00:07:49.308 --> 00:07:51.744 licensees must comply with all local, NOTE Confidence: 0.8724061 00:07:51.750 --> 00:07:53.190 state, and federal laws, NOTE Confidence: 0.8724061 00:07:53.190 --> 00:07:54.270 regulations and requirements. NOTE Confidence: 0.8724061 00:07:54.270 --> 00:07:55.350 It's OK to NOTE Confidence: 0.8724061 00:07:55.350 --> 00:07:56.430 kill your client. NOTE Confidence: 0.8724061 00:07:56.430 --> 00:07:58.950 That's not a violation of your license. NOTE Confidence: 0.8724061 00:07:58.950 --> 00:08:00.885 The only things they are NOTE Confidence: 0.8724061 00:08:00.885 --> 00:08:02.046 issuing citations on. NOTE Confidence: 0.8724061 00:08:02.050 --> 00:08:06.670 Are you didn't submit your paperwork on time? NOTE Confidence: 0.8724061 00:08:06.670 --> 00:08:09.710 You didn't pay your licensing fee on time. NOTE Confidence: 0.8724061 00:08:09.710 --> 00:08:12.370 Now that will get you a citation. NOTE Confidence: 0.8724061 00:08:12.370 --> 00:08:14.952 There are a few cases where licensees NOTE Confidence: 0.8724061 00:08:14.952 --> 00:08:17.266 have lost their license that happens NOTE Confidence: 0.8724061 00:08:17.266 --> 00:08:19.968 after some other court finds a problem. NOTE Confidence: 0.8724061 00:08:19.970 --> 00:08:21.490 Doesn't investigation goes through NOTE Confidence: 0.8724061 00:08:21.490 --> 00:08:23.770 whatever months years are required for NOTE Confidence: 0.8724061 00:08:23.770 --> 00:08:26.430 the courts to grind through these cases. NOTE Confidence: 0.8724061 00:08:26.430 --> 00:08:28.330 Thank you for confirming that NOTE Confidence: 0.8605883 00:08:28.330 --> 00:08:30.731 you do nothing until there is a NOTE Confidence: 0.8605883 00:08:30.731 --> 00:08:32.570 conviction and you let people NOTE Confidence: 0.8605883 00:08:32.570 --> 00:08:34.420 operate who have done horrible NOTE Confidence: 0.8605883 00:08:34.420 --> 00:08:36.769 things and a lesser convicted. NOTE Confidence: 0.8605883 00:08:36.770 --> 00:08:38.726 It's all OK with you guys. NOTE Confidence: 0.8605883 00:08:38.730 --> 00:08:40.038 Thank you for that NOTE Confidence: 0.85874635 00:08:40.040 --> 00:08:41.344 confirmation. When the professional NOTE Confidence: 0.85874635 00:08:41.344 --> 00:08:42.974 Fiduciary Bureau does take action, NOTE Confidence: 0.85874635 00:08:42.980 --> 00:08:44.616 these documents become public records. NOTE Confidence: 0.85874635 00:08:44.616 --> 00:08:46.908 So far there's been 70 fiduciaries that NOTE Confidence: 0.85874635 00:08:46.908 --> 00:08:48.864 have been reprimanded by the Bureau. NOTE Confidence: 0.85874635 00:08:48.870 --> 00:08:50.970 Now we went through each and every NOTE Confidence: 0.85874635 00:08:50.970 --> 00:08:52.987 one of these documents to see NOTE Confidence: 0.85874635 00:08:52.987 --> 00:08:55.075 what the Bureau has taken action NOTE Confidence: 0.85874635 00:08:55.080 --> 00:08:58.023 against and what we found is one of the NOTE Confidence: 0.85874635 00:08:58.030 --> 00:08:59.330 most common reasons fiduciaries NOTE Confidence: 0.85874635 00:08:59.330 --> 00:09:00.966 are cited is for submitting NOTE Confidence: 0.85874635 00:09:00.966 --> 00:09:02.272 their annual accountings late, NOTE Confidence: 0.85874635 00:09:02.272 --> 00:09:04.204 but Linda and Richard say auditing NOTE Confidence: 0.85874635 00:09:04.204 --> 00:09:05.844 and accounting wasn't being done NOTE Confidence: 0.85874635 00:09:05.844 --> 00:09:07.399 before their organization brought it NOTE Confidence: 0.85874635 00:09:07.399 --> 00:09:09.570 to the PFI's attention. They only NOTE Confidence: 0.8087715 00:09:09.570 --> 00:09:11.280 started auditing the statements because NOTE Confidence: 0.8087715 00:09:11.280 --> 00:09:13.190 we were tormenting them about it. NOTE Confidence: 0.8087715 00:09:13.190 --> 00:09:15.820 It doesn't add up, there was money missing. NOTE Confidence: 0.8087715 00:09:15.820 --> 00:09:17.908 Linda and Richard found that multiple NOTE Confidence: 0.8087715 00:09:17.908 --> 00:09:19.948 fiduciaries annual statements to the PFB NOTE Confidence: 0.8087715 00:09:19.948 --> 00:09:22.070 weren't in alignment with court records. I NOTE Confidence: 0.8087715 00:09:22.070 --> 00:09:23.834 looked at her her annual statements NOTE Confidence: 0.8087715 00:09:23.834 --> 00:09:26.019 to the PFB and she's reporting, NOTE Confidence: 0.8087715 00:09:26.020 --> 00:09:27.324 you know, first year, NOTE Confidence: 0.8087715 00:09:27.324 --> 00:09:28.954 she reported that she didn't NOTE Confidence: 0.8087715 00:09:28.954 --> 00:09:32.420 have any prior cases, I think. NOTE Confidence: 0.8087715 00:09:32.420 --> 00:09:34.110 Well, actually she's had hundreds, NOTE Confidence: 0.8087715 00:09:34.110 --> 00:09:36.806 and that's how we got the audits rolling. NOTE Confidence: 0.8087715 00:09:36.810 --> 00:09:39.514 By doing a few of these is like, NOTE Confidence: 0.8087715 00:09:39.520 --> 00:09:41.206 Oh my the court records. NOTE Confidence: 0.8087715 00:09:41.206 --> 00:09:43.232 Don't agree with what you have NOTE Confidence: 0.8087715 00:09:43.232 --> 00:09:44.584 in your annual statements. NOTE Confidence: 0.8087715 00:09:44.590 --> 00:09:45.598 This doesn't make NOTE Confidence: 0.8511821 00:09:45.600 --> 00:09:47.784 sense when we ask the PFB about NOTE Confidence: 0.8511821 00:09:47.784 --> 00:09:49.660 how their auditing process works. NOTE Confidence: 0.8511821 00:09:49.660 --> 00:09:51.688 They said they cannot discuss it. NOTE Confidence: 0.8511821 00:09:51.690 --> 00:09:53.699 Some of the citations we found that NOTE Confidence: 0.8511821 00:09:53.699 --> 00:09:56.362 the PFB has issued but didn't end in NOTE Confidence: 0.8511821 00:09:56.362 --> 00:09:58.531 a license being revoked includes a NOTE Confidence: 0.8511821 00:09:58.531 --> 00:10:01.093 fiduciary in San Diego County who forged NOTE Confidence: 0.8511821 00:10:01.093 --> 00:10:02.898 client signatures on multiple documents. NOTE Confidence: 0.8511821 00:10:02.898 --> 00:10:06.120 Including checks and a pink slip as well as NOTE Confidence: 0.8511821 00:10:06.120 --> 00:10:08.458 sold a car without the clients knowledge. NOTE Confidence: 0.8511821 00:10:08.460 --> 00:10:10.548 Another fiduciary in San Diego sold NOTE Confidence: 0.8511821 00:10:10.548 --> 00:10:12.326 the clients condominium far below NOTE Confidence: 0.8511821 00:10:12.326 --> 00:10:14.252 the market value and without getting NOTE Confidence: 0.8511821 00:10:14.252 --> 00:10:16.379 an appraisal in Contra Costa County, NOTE Confidence: 0.8511821 00:10:16.380 --> 00:10:19.028 a fiduciary was fined by the PFB after NOTE Confidence: 0.8511821 00:10:19.028 --> 00:10:21.482 she entered a nursing home with the NOTE Confidence: 0.8511821 00:10:21.482 --> 00:10:23.939 notary and attempted to have a patient. NOTE Confidence: 0.8511821 00:10:23.940 --> 00:10:25.264 Already diagnosed with Alzheimer's NOTE Confidence: 0.8511821 00:10:25.264 --> 00:10:27.250 sign documents that would make her NOTE Confidence: 0.8511821 00:10:27.302 --> 00:10:28.070 the conservator. NOTE Confidence: 0.8511821 00:10:28.070 --> 00:10:29.785 All of these fiduciaries licenses NOTE Confidence: 0.8511821 00:10:29.785 --> 00:10:30.814 are still active, NOTE Confidence: 0.8511821 00:10:30.820 --> 00:10:32.540 So what about fiduciary's that NOTE Confidence: 0.8511821 00:10:32.540 --> 00:10:34.260 have had their licenses revoked, NOTE Confidence: 0.8511821 00:10:34.260 --> 00:10:35.409 suspended or surrendered? NOTE Confidence: 0.8511821 00:10:35.409 --> 00:10:37.707 The PDF documents on that show NOTE Confidence: 0.8511821 00:10:37.707 --> 00:10:39.350 even more serious abuse. NOTE Confidence: 0.8511821 00:10:39.350 --> 00:10:40.094 For example, NOTE Confidence: 0.8511821 00:10:40.094 --> 00:10:41.954 a fiduciary in San Diego NOTE Confidence: 0.8511821 00:10:41.954 --> 00:10:43.720 County lost $920,000 gambling, NOTE Confidence: 0.8511821 00:10:43.720 --> 00:10:46.331 which was more than their income and NOTE Confidence: 0.8511821 00:10:46.331 --> 00:10:47.940 investigation showed this fiduciary NOTE Confidence: 0.8511821 00:10:47.940 --> 00:10:50.075 was withdrawing money directly from NOTE Confidence: 0.8511821 00:10:50.075 --> 00:10:52.450 their clients trust funds to gamble. NOTE Confidence: 0.8511821 00:10:52.450 --> 00:10:55.434 She was sentence in 2011 to 18 months NOTE Confidence: 0.8511821 00:10:55.434 --> 00:10:58.007 in prison in Santa Clara County, NOTE Confidence: 0.8511821 00:10:58.010 --> 00:10:59.995 and fiduciary allowed her boyfriend NOTE Confidence: 0.8511821 00:10:59.995 --> 00:11:02.832 to divert $16.2 million to invest in NOTE Confidence: 0.8511821 00:11:02.832 --> 00:11:05.178 real estate and startup tech adventures NOTE Confidence: 0.8511821 00:11:05.178 --> 00:11:07.627 without the knowledge of her clients. NOTE Confidence: 0.8511821 00:11:07.630 --> 00:11:09.310 Other examples include fiduciaries NOTE Confidence: 0.8511821 00:11:09.310 --> 00:11:10.990 overpaying their own fees, NOTE Confidence: 0.8511821 00:11:10.990 --> 00:11:12.670 transferring thousands of dollars NOTE Confidence: 0.8511821 00:11:12.670 --> 00:11:14.350 between different client trusts, NOTE Confidence: 0.8511821 00:11:14.350 --> 00:11:16.450 and taking excess fees from NOTE Confidence: 0.8511821 00:11:16.450 --> 00:11:18.550 these trust with no explanation. NOTE Confidence: 0.8511821 00:11:18.550 --> 00:11:19.390 Donnick health, NOTE Confidence: 0.8144206 00:11:19.390 --> 00:11:21.490 professional fiduciary Sacramento and one NOTE Confidence: 0.8144206 00:11:21.490 --> 00:11:23.590 fiduciary who surrendered her license NOTE Confidence: 0.8144206 00:11:23.590 --> 00:11:27.990 was Donna Kel. We first heard her. NOTE Confidence: 0.8114006 00:11:27.990 --> 00:11:29.470 She's began to arise NOTE Confidence: 0.8114006 00:11:29.470 --> 00:11:31.325 along with not receiving his NOTE Confidence: 0.8114006 00:11:31.325 --> 00:11:32.809 distributions from the trust. NOTE Confidence: 0.8114006 00:11:32.810 --> 00:11:34.665 Gabe was unable to get NOTE Confidence: 0.8114006 00:11:34.665 --> 00:11:35.778 important tax documents NOTE Confidence: 0.8114006 00:11:35.780 --> 00:11:38.100 from AKEL. The ability for me to make NOTE Confidence: 0.8114006 00:11:38.100 --> 00:11:40.598 contact with her became extremely strained NOTE Confidence: 0.8114006 00:11:40.598 --> 00:11:42.454 difficulty in reaching fiduciaries NOTE Confidence: 0.8114006 00:11:42.460 --> 00:11:45.428 is a pattern we found in our investigation. NOTE Confidence: 0.8114006 00:11:45.430 --> 00:11:48.028 There's a lot of it being misled. NOTE Confidence: 0.8114006 00:11:48.028 --> 00:11:50.368 This is what led game to file a report NOTE Confidence: 0.8114006 00:11:50.368 --> 00:11:51.844 with the Professional Fiduciary NOTE Confidence: 0.8114006 00:11:51.844 --> 00:11:53.676 Bureau sparking their investigation NOTE Confidence: 0.8114006 00:11:53.676 --> 00:11:56.393 into AKEL while she served on NOTE Confidence: 0.8114006 00:11:56.393 --> 00:11:58.037 the Bureau's advisory committee. NOTE Confidence: 0.8114006 00:11:58.040 --> 00:12:00.000 A committee appointed to oversee. NOTE Confidence: 0.8114006 00:12:00.000 --> 00:12:02.544 And guide the Bureau. This is Don I NOTE Confidence: 0.83121383 00:12:02.550 --> 00:12:03.510 to our professional NOTE Confidence: 0.83121383 00:12:03.510 --> 00:12:05.100 fiduciary, and he wasn't alone NOTE Confidence: 0.83121383 00:12:05.100 --> 00:12:07.340 in the lack of care from Mckell. NOTE Confidence: 0.83121383 00:12:07.340 --> 00:12:09.440 The report of the Bureau's investigation NOTE Confidence: 0.83121383 00:12:09.440 --> 00:12:11.448 showed multiple clients of Acal who NOTE Confidence: 0.83121383 00:12:11.448 --> 00:12:13.394 were not served in their best interest. NOTE Confidence: 0.83121383 00:12:13.400 --> 00:12:15.302 The report showed a cow liquidated NOTE Confidence: 0.83121383 00:12:15.302 --> 00:12:17.679 a client stock in 2015 without their NOTE Confidence: 0.83121383 00:12:17.679 --> 00:12:20.420 knowledge to make a full cash purchase on a NOTE Confidence: 0.83121383 00:12:20.420 --> 00:12:23.282 home which she named herself on the deed as NOTE Confidence: 0.83121383 00:12:23.290 --> 00:12:25.564 co-owner, she allowed her daughter to NOTE Confidence: 0.83121383 00:12:25.564 --> 00:12:28.292 rent their clients home for a rate under NOTE Confidence: 0.83121383 00:12:28.292 --> 00:12:30.760 the market from 2015 to 2018. In charge, NOTE Confidence: 0.86710364 00:12:30.760 --> 00:12:33.399 utilities to the clients of state hired NOTE Confidence: 0.86710364 00:12:33.400 --> 00:12:35.668 her brother to serve as caregiver. NOTE Confidence: 0.86710364 00:12:35.670 --> 00:12:38.099 Used her clients credit card to make NOTE Confidence: 0.86710364 00:12:38.099 --> 00:12:40.189 purchases on our Amazon account, NOTE Confidence: 0.86710364 00:12:40.190 --> 00:12:42.170 and even gave a clients military NOTE Confidence: 0.86710364 00:12:42.170 --> 00:12:44.039 jacket to her uncle without NOTE Confidence: 0.86710364 00:12:44.039 --> 00:12:45.840 the clients knowledge, among NOTE Confidence: 0.86710364 00:12:45.840 --> 00:12:47.725 other charges when she had NOTE Confidence: 0.86710364 00:12:47.725 --> 00:12:49.610 to talk to the investigator, NOTE Confidence: 0.86710364 00:12:49.610 --> 00:12:51.300 she actually build the trust NOTE Confidence: 0.86710364 00:12:51.300 --> 00:12:52.990 for her time spent interviewing NOTE Confidence: 0.86710364 00:12:53.053 --> 00:12:54.520 the professional Fiduciary NOTE Confidence: 0.86710364 00:12:54.520 --> 00:12:57.012 Bureau issued a citation as well as NOTE Confidence: 0.86710364 00:12:57.012 --> 00:12:59.762 an accusation that resulted in a cow NOTE Confidence: 0.86710364 00:12:59.762 --> 00:13:01.988 surrendering her license. On October 27th, NOTE Confidence: 0.84068274 00:13:01.990 --> 00:13:03.660 2020, we reached out to NOTE Confidence: 0.84068274 00:13:03.660 --> 00:13:05.338 Donna Kel. She declined to NOTE Confidence: 0.84068274 00:13:05.340 --> 00:13:06.375 answer our questions. NOTE Confidence: 0.84068274 00:13:06.375 --> 00:13:08.445 Today, Gabe has a new fiduciary NOTE Confidence: 0.84068274 00:13:08.445 --> 00:13:10.853 he likes and says he has no NOTE Confidence: 0.84068274 00:13:10.853 --> 00:13:12.370 problem communicating with he as NOTE Confidence: 0.84068274 00:13:12.370 --> 00:13:14.715 well as Carol Herman. Hope that in NOTE Confidence: 0.84068274 00:13:14.720 --> 00:13:16.140 telling their stories encourages NOTE Confidence: 0.84068274 00:13:16.140 --> 00:13:17.915 the PFB and other government NOTE Confidence: 0.84068274 00:13:17.915 --> 00:13:19.869 entities to take more action against NOTE Confidence: 0.84068274 00:13:19.869 --> 00:13:21.414 abuses in the fiduciary industry. NOTE Confidence: 0.84068274 00:13:21.420 --> 00:13:22.760 I think there's some NOTE Confidence: 0.84068274 00:13:22.760 --> 00:13:24.430 good private fiduciary's out there, NOTE Confidence: 0.84068274 00:13:24.430 --> 00:13:26.775 but I think there's also a lot NOTE Confidence: 0.84068274 00:13:26.775 --> 00:13:28.790 that aren't. Is the sort of NOTE Confidence: 0.84068274 00:13:28.790 --> 00:13:30.570 stuff that people should go NOTE Confidence: 0.84068274 00:13:30.570 --> 00:13:33.080 to jail for. But they don't, NOTE Confidence: 0.8667898 00:13:33.080 --> 00:13:35.780 and I think it's the responsibility NOTE Confidence: 0.8667898 00:13:35.780 --> 00:13:38.182 of this fiduciary board to NOTE Confidence: 0.8667898 00:13:38.182 --> 00:13:40.258 protect the vulnerable citizens NOTE Confidence: 0.8667898 00:13:40.260 --> 00:13:41.700 of this state.