Editor’s note: Would Joe Sixpack get the same "touchy feely" treatment? But Joe Sixpack does not live in Lake Forest and sponsors the symphony? This crook should be jailed! This Shark wants to vomit! Lucius Verenus, Schoolmaster, ProbateSharks.com
Lake Forest Financial Advisor Found Guilty of Attempted Financial Exploitation of the Elderly
April 23, 2013 by Leave
a Comment ( 2 Comments)
Editor’s note: As a general rule, GazeboNews doesn’t report every blotter
item or misdemeanor that takes place locally. That said, we make an exception
when we feel that shedding light on a situation can be beneficial in terms of
education and awareness. We hope this story brings attention to what the Lake
County State’s Attorney’s Office considers a growing trend: financial
exploitation of the elderly.
By Jenny Quill, GazeboNews reporter
Longtime Lake Forest resident and financial advisor James P. Richter was found guilty of Attempted Financial Exploitation of the Elderly on April 4 by the Lake County Circuit Court. According to public records, the Class A misdemeanor carries a sentence of 12 months conditional discharge including 100 hours of community service and a $500 contribution to a charity. He’s also required to avoid all contact with the two senior citizens at the center of the case.
They’re a married couple in their late-70s/early-80s who have lived in Lake Forest for 45 years and, they said, had been clients of Richter’s since 1993. They spoke with GazeboNews on the condition of anonymity to raise awareness of the issue of exploitation of the elderly. GazeboNews called and emailed Richter and his attorney several times but were unable to get a comment from them.
The story of People vs. James P. Richter began in February 2010, when, according to Lake County Assistant State’s Attorney Stephen Scheller, Richter asked the couple for a $45,000 loan, which they gave him. Approximately one year later, he said, Richter asked for a second loan, this time in the amount of $15,000, which the couple also gave him. Scheller said that in both cases, Richter signed promissory notes.
Richter has been involved in several local organizations and boards, including serving as the chairman of the Lake Forest Symphony Association, former president of the Lake Forest Open Lands Association, and treasurer at the First Presbyterian Church of Lake Forest.
Professionally, Richter has been an investment and asset manager for the better part of 30 years. According to an online bio, he was president of Lake Forest Capital Management from 1983 until 2003 when Wayne Hummer Investments, a subsidiary of Wintrust Wealth Management, acquired the company. (Parent company Wintrust Financial Corp. also controls Lake Forest Bank & Trust.) At Wayne Hummer, Richter was a managing director and senior portfolio manager until he retired in May 2011. He joined Bensman Group in the fall of 2012.
GazeboNews asked Wayne Hummer’s parent company Wintrust Financial Corp. to comment on the guilty finding. Lisa Pattis, general counsel for Wintrust Financial Corp., stated, “It is our understanding that this matter relates to personal loans made by [the couple] to Mr. Richter. Obviously, if he did this, if he was found guilty, it is an awful thing to have done. To our knowledge, however, whatever happened between [the couple] and Mr. Richter was a personal matter and not related to Mr. Richter’s employment with us.”
In the fall of 2011, the couple contacted the Lake County State’s Attorney’s Office, which opened an investigation and eventually reached an agreement with Richter and his attorney, in which Richter pleaded to a misdemeanor if he paid the couple back in full, which he did, according to Scheller. He said that the amount of money involved would have warranted a felony charge if the money had not been repaid.
“Obviously, we want to charge the offender, but if we can get the victims’ money back, it doesn’t do us any good to throw the offender in jail for three years and not get a cent,” said Scheller. “This is a conviction on his record that won’t be expunged or go away. We’re happy we got the victims their money back, and we’re happy we got the conviction.”
This isn’t the first documented incident in which Richter is accused of requesting loans from an elderly client. According to public records, in April 2011, a civil complaint was filed against Richter in the Lake County Circuit Court on behalf of a then-75-year-old Lake Forest woman who said she loaned Richter $205,000 between 1992 and 1998. The complaint stated that the woman, a client of Richter’s between 1992 and 1998 when he worked for Lake Forest Capital Management, had been diagnosed with Parkinson’s Disease, which, according to the complaint, “impaired her ability to independently manage her property or financial resources.” Because the statute of limitations had expired by the time the woman contacted attorneys, criminal action could not be taken. In the civil complaint, the Court entered an agreed judgment in favor of the woman in the amount of $110,783.
According to Assistant State’s Attorney Scheller, financial exploitation of the elderly is on the rise in Lake County.
“We are handling a lot more cases of exploitation of the elderly,” Scheller said. “It is a growing trend.” The majority of the cases, said Scheller, involve family members exploiting their elderly relatives. “A lot of the issues we see seem to involve family members who exploit mom or dad or grandma or grandpa,” he said.
It’s important for senior citizens to keep track of their financial statements and to check their accounts on a regular basis, he said. “Spend every weekend or every other weekend going through statements and documents,” said Scheller. “And don’t feel pressured to sign anything. You can always refuse to sign something.”
If you’re concerned that an elderly family member may be a victim of fraud or exploitation, contact the Lake County State’s Attorney’s Office at 847-377-3000. Lake Forest residents can also call the Lake Forest Police Department non-emergency number at 847-234-2601. For Lake Bluff residents, the non-emergency phone number is 847-234-2153.
By Jenny Quill, GazeboNews reporter
Longtime Lake Forest resident and financial advisor James P. Richter was found guilty of Attempted Financial Exploitation of the Elderly on April 4 by the Lake County Circuit Court. According to public records, the Class A misdemeanor carries a sentence of 12 months conditional discharge including 100 hours of community service and a $500 contribution to a charity. He’s also required to avoid all contact with the two senior citizens at the center of the case.
They’re a married couple in their late-70s/early-80s who have lived in Lake Forest for 45 years and, they said, had been clients of Richter’s since 1993. They spoke with GazeboNews on the condition of anonymity to raise awareness of the issue of exploitation of the elderly. GazeboNews called and emailed Richter and his attorney several times but were unable to get a comment from them.
The story of People vs. James P. Richter began in February 2010, when, according to Lake County Assistant State’s Attorney Stephen Scheller, Richter asked the couple for a $45,000 loan, which they gave him. Approximately one year later, he said, Richter asked for a second loan, this time in the amount of $15,000, which the couple also gave him. Scheller said that in both cases, Richter signed promissory notes.
Richter has been involved in several local organizations and boards, including serving as the chairman of the Lake Forest Symphony Association, former president of the Lake Forest Open Lands Association, and treasurer at the First Presbyterian Church of Lake Forest.
Professionally, Richter has been an investment and asset manager for the better part of 30 years. According to an online bio, he was president of Lake Forest Capital Management from 1983 until 2003 when Wayne Hummer Investments, a subsidiary of Wintrust Wealth Management, acquired the company. (Parent company Wintrust Financial Corp. also controls Lake Forest Bank & Trust.) At Wayne Hummer, Richter was a managing director and senior portfolio manager until he retired in May 2011. He joined Bensman Group in the fall of 2012.
GazeboNews asked Wayne Hummer’s parent company Wintrust Financial Corp. to comment on the guilty finding. Lisa Pattis, general counsel for Wintrust Financial Corp., stated, “It is our understanding that this matter relates to personal loans made by [the couple] to Mr. Richter. Obviously, if he did this, if he was found guilty, it is an awful thing to have done. To our knowledge, however, whatever happened between [the couple] and Mr. Richter was a personal matter and not related to Mr. Richter’s employment with us.”
In the fall of 2011, the couple contacted the Lake County State’s Attorney’s Office, which opened an investigation and eventually reached an agreement with Richter and his attorney, in which Richter pleaded to a misdemeanor if he paid the couple back in full, which he did, according to Scheller. He said that the amount of money involved would have warranted a felony charge if the money had not been repaid.
“Obviously, we want to charge the offender, but if we can get the victims’ money back, it doesn’t do us any good to throw the offender in jail for three years and not get a cent,” said Scheller. “This is a conviction on his record that won’t be expunged or go away. We’re happy we got the victims their money back, and we’re happy we got the conviction.”
This isn’t the first documented incident in which Richter is accused of requesting loans from an elderly client. According to public records, in April 2011, a civil complaint was filed against Richter in the Lake County Circuit Court on behalf of a then-75-year-old Lake Forest woman who said she loaned Richter $205,000 between 1992 and 1998. The complaint stated that the woman, a client of Richter’s between 1992 and 1998 when he worked for Lake Forest Capital Management, had been diagnosed with Parkinson’s Disease, which, according to the complaint, “impaired her ability to independently manage her property or financial resources.” Because the statute of limitations had expired by the time the woman contacted attorneys, criminal action could not be taken. In the civil complaint, the Court entered an agreed judgment in favor of the woman in the amount of $110,783.
According to Assistant State’s Attorney Scheller, financial exploitation of the elderly is on the rise in Lake County.
“We are handling a lot more cases of exploitation of the elderly,” Scheller said. “It is a growing trend.” The majority of the cases, said Scheller, involve family members exploiting their elderly relatives. “A lot of the issues we see seem to involve family members who exploit mom or dad or grandma or grandpa,” he said.
It’s important for senior citizens to keep track of their financial statements and to check their accounts on a regular basis, he said. “Spend every weekend or every other weekend going through statements and documents,” said Scheller. “And don’t feel pressured to sign anything. You can always refuse to sign something.”
If you’re concerned that an elderly family member may be a victim of fraud or exploitation, contact the Lake County State’s Attorney’s Office at 847-377-3000. Lake Forest residents can also call the Lake Forest Police Department non-emergency number at 847-234-2601. For Lake Bluff residents, the non-emergency phone number is 847-234-2153.
Comments
http://gazebonews.com/2013/04/23/lake-forest-financial-advisor-found-guilty-of-attempted-financial-exploitation-of-the-elderly/
Economic downturns are not an excuse. I share Dr. Miller’s sadness to see a long-time pillar of our community, who has done much good for the public, violate basic ethics. Jim has given hundreds of hours of volunteer time to better our community. But that’s not really an excuse.
If there are other victims, whether of Mr. Richter or others, I hope that they will contact the police or the States Attorney. I know that Lake County States Attorney Mike Nerheim and his able assistant, Steve Scheller, take financial abuse of the elderly very seriously. Victims should not feel embarrassed or ashamed; this is a crime. Seniors should speak up to prevent others from becoming victims.
On behalf of the many professionals who serve our seniors, I’d like to thank Gazebonews for stepping outside of your comfort zone and publishing this important and cautionary story.
This sad result is a blow to the whole community that has benefited in so many ways from the contributions of the Richter family. All of us, too, can reflect on the high premium we Lake Foresters put on our leaders to be successful in every way, “winners.” We are privileged to live here and raise our families surrounded by open lands, rich culture, strong religious institutions, etc. As our sympathies with those who lost funds in these instances are felt, let us also not forget how much the Richter family and Jim in particular have done to make this a special place we can enjoy and be proud of.
I wish all concerned the best for the future after this outcome. Our community is not so large that strong friendships can’t ameliorate difficult instances like these.