Posted on: Friday, October 29, 2004
State sues in alleged elder abuse case
By Curtis Lum
Advertiser Staff Writer
For the first time under a new law, the state yesterday sued a man accused of financially exploiting an elderly couple by taking control of their million-dollar estate and reinvesting the money for his own benefit.
The Circuit Court lawsuit was filed by the attorney general's office against Aldon J. Arquette, a self-employed insurance agent. It asks that a court order Arquette to stop acting on behalf of Hazel Cherry, accusing Arquette of abuse and financial exploitation of a dependent elder.
It is the first time legal action has been taken under a law passed in 2003 allowing the attorney general to take civil action against a caregiver who is believed to be abusing a dependent elder.
Arquette could not be reached for comment yesterday.
The attorney general is seeking an injunction that would stop Arquette from serving as Cherry's financial adviser. He is accused of taking advantage of Cherry's declining mental health and taking funds from sources that "would inure to the benefit of a 90-year-old woman" and investing them in long-term, low-yield annuity money, the lawsuit states.
In addition to the injunction, the state is asking that Arquette be ordered to return all of the funds that he expended on Cherry's behalf, and pay fines of $500 to $1,000 for each day that he is accused of exploiting Cherry since May 3, 2003.
In one case, the lawsuit said, Arquette invested $800,000 of Cherry's money and made a $76,000 commission. The investment was later voided and the commission returned, according to the lawsuit.
It is alleged that Arquette befriended Limuel and Hazel Cherry in 2003 on a city bus, and soon after took control of the couple's estate, valued at $1 million.
Limuel Cherry died Aug. 2, 2003, and Arquette took greater control over Hazel Cherry's finances after he learned that she was suffering from age-related dementia, the lawsuit states. In October 2003, Arquette had Cherry assign full power of attorney to him, and a week later created a revocable living trust that named himself as the trustee.
Some of Arquette's investments caught the eye of the Cherrys' former financial adviser, who told authorities the new practices were "highly inconsistent" with the couple's earlier investments, the lawsuit alleges.
Having taken control over Cherry, Arquette became her caregiver and had the duty to oversee her health, safety and welfare. But Arquette is accused of failing in his responsibilities.
Deputy Attorney General Mike Parrish, director of the Medicaid Fraud Control Unit, said his office filed suit to prevent Arquette from making further financial decisions on behalf of Cherry.
"There was a need for quick action in order to protect any further harm to the victim," Parrish said. "This particular statute gave us the opportunity to proactively protect the victim while preserving the opportunity to seek further sanction."
Reach Curtis Lum at 525-8025 or culum@honoluluadvertiser.com.
