{"id":52885,"date":"2023-04-19T16:05:36","date_gmt":"2023-04-19T23:05:36","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=52885"},"modified":"2023-04-19T16:05:36","modified_gmt":"2023-04-19T23:05:36","slug":"south-carolina-woman-targeted-retirees-and-military-pensioners-for-financial-scams","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=52885","title":{"rendered":"South Carolina Woman Targeted Retirees and Military Pensioners for Financial Scams"},"content":{"rendered":"

\"\"A South Carolina woman pleaded guilty to conspiracy for her role in a nationwide structured cash flow scheme, officials stated.<\/span><\/p>\n

The scam exploited military veterans in desperate financial straits and targeted elderly investors seeking a safe retirement investment.<\/span><\/p>\n

\n
\n
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Candy Kern, 55, of Anderson, South Carolina, was the managing partner of a small South Carolina-based law firm. <\/span><\/p>\n

From 2012 through 2021, she used her law firm to facilitate a fraudulent scheme involving illegally assigning veterans\u2019 benefits.<\/span><\/p>\n

\"\"The scheme worked as follows: Numerous individuals and small corporate entities, referred to as Structured Cash Flow (SCF) entities, offered veterans \u2013 many of whom were in acute financial distress \u2013 an up-front lump sum payment in exchange for the assignment of the veterans\u2019 monthly pension and\/or disability payments for some time. <\/span><\/p>\n

Working through a network of investment advisors and insurance agents, the SCF entities would then solicit retirees to invest in these contracts \u2013 providing the up-front lump sums under the pretense that the flow of repayments by veterans over time would translate into a return for the retiree-investors, officials stated.<\/span><\/p>\n

For more than eight years, Kern, through her law firm, served as the banker, legal counsel, and debt collector for the SCF operation. <\/span><\/p>\n

\"\"Among other services, Kern\u2019s law firm (1) managed, controlled, and maintained the bank accounts through which payments to and from investors and veterans flowed; and (2) filed suits against veterans who defaulted. <\/span><\/p>\n

Throughout the scheme, and unbeknownst to the veterans or the retirees, the pension assignment contracts were, in fact, void as it is illegal to assign a pension under federal law \u2013 a fact Kern knew but never disclosed during the execution of any contract.<\/span><\/p>\n

\"\"Over time, the scheme collapsed. Many veterans (who tended to be in dire financial straits) either could not repay their \u201cobligations\u201d under the contract or opted not to do so upon learning that federal law prohibited pension assignments. <\/span><\/p>\n

Throughout this scheme, approximately $14 million in illegally assigned veterans\u2019 benefits flowed through the accounts controlled by Kern\u2019s law firm. <\/span><\/p>\n

Notwithstanding the invalidity of the contracts, Kern pursued enforcement actions against veterans who defaulted, securing numerous default judgments against veterans\u00a0in absentia<\/em>. <\/span><\/p>\n

As a result, Kern\u2019s law firm received about $1.4 million.<\/span><\/p>\n

At the same time, retiree-investors \u2013 who were misled and fraudulently induced to purchase the SCF product without being informed of all material information about the contracts \u2013 lost approximately $31.3 million.<\/span><\/p>\n

\u201cThis elaborate scheme preyed upon and exploited some of our most vulnerable populations, and when it collapsed, it left thousands of veterans in financial ruin and scores of retiree-investors without adequate resources to retire,\u201d said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department\u2019s Civil Division. <\/span><\/p>\n

Assistant U.S. Attorney William Watkins for the District of South Carolina and Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Civil Division\u2019s Consumer Protection Branch prosecuted the case.<\/span><\/p>\n

The FBI investigated the matter. <\/span><\/p>\n

If you or someone you know is 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). <\/span><\/p>\n

This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the victim’s needs and identifying relevant next steps. <\/span><\/p>\n

Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. <\/span><\/p>\n

Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. <\/span><\/p>\n

The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.<\/span><\/p>\n

More information about the Department\u2019s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https:\/\/www.justice.gov\/civil\/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https:\/\/www.ovc.gov. For more information on the Servicemembers and Veterans Initiative, or to file a complaint, visit https:\/\/www.justice.gov\/servicemembers.\u00a0 \u00a0<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A South Carolina woman pleaded guilty to conspiracy for her role in a nationwide structured cash flow scheme, officials stated. The scam exploited military veterans in desperate financial straits and targeted elderly…<\/p>\n","protected":false},"author":1,"featured_media":52830,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255],"tags":[3658],"class_list":["post-52885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court","tag-financial-scheme"],"yoast_head":"\nSouth Carolina Woman Targeted Retirees and Military Pensioners for Financial Scams<\/title>\n<meta name=\"description\" content=\"A South Carolina woman pleaded guilty to conspiracy for her role in a nationwide structured cash flow scheme, officials stated. 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