The Office of Minnesota Attorney General Lori Swanson today filed a criminal complaint in Rice County District Court charging a Dakota County woman, Connie Ruth Rott, with nine felony counts of theft by swindle and five felony counts of financial exploitation of a vulnerable adult for diverting over $1.1 million held in trust for the benefit of Rott’s elderly mother, D.S.  Because of Rott’s depletion of D.S.’s assets, the State’s taxpayer-funded Medical Assistance program is now paying for the 89-year-old D.S.’s nursing home and medical bills, at a monthly cost of $4,200.

“The sad thing about this case is that, unlike many senior citizens, the 89-year-old victim started out with plenty of money to pay for her nursing home and medical care.  Because of the daughter’s exploitive self-dealing, the mother’s assets have been substantially depleted, and the taxpayer-financed Medical Assistance program is now paying for her care,” said Attorney General Lori Swanson.

In 2000, D.S. placed real estate she owned in Northfield, Minnesota that she originally farmed with her late husband into a revocable trust to be used for her care, comfort, support, and maintenance, naming her daughter Rott as Trustee.  D.S. also signed a durable power of attorney that year naming Rott as her attorney-in-fact, and in 2003, Rott was named D.S.’s legal guardian.  In 2004, D.S. was admitted to the dementia unit of the Three Links Care Center, a Northfield nursing home.  D.S. requires total assistance with activities of daily living.  Rott agreed to make timely payments to Three Links using D.S.’s income and assets. 

The complaint alleges that, between 2004 and 2007, Rott sold three pieces of the real estate D.S. placed into trust, for a net amount of over $1.3 million, and then diverted over $1.1 million in proceeds from the sale of the real estate to her own benefit or for the benefit of persons other than D.S.  For example, the complaint alleges that disbursements from the trust included, among other things:

• $59,056 for Rott’s mortgage and property taxes
• $754 on alcohol
• $47,936 in ATM withdrawals/cash
• $157,887 payable to third persons, including Rott’s children
• Thousands of dollars in travel costs
• Thousands of dollars in court fees, criminal defense attorney costs, and other related legal expenses for Rott’s son, who was convicted of first degree manufacture of methamphetamine
• $8,685 in expenses for Rott’s family snow plowing and yard service
  

In October, 2007, Rott stopped issuing payments on D.S.’s behalf for the care provided to her at the Three Links Care Center nursing home.  By June, 2008 D.S.’s account at Three Links was eight months past due and, because of the non-payment, the nursing home issued a notice of intent to discharge D.S. in June, 2008.  That same month, Rott told the nursing home she planned to remove her mother from the facility.  An emergency guardianship and conservator proceeding was then filed by Rice County Adult Protective Services, and on June 27, 2008 the court granted an emergency guardianship and conservatorship.

D.S.’s court-appointed emergency guardian applied for a “hardship waiver” so as to obtain Medical Assistance benefits to pay for D.S.’s health care at Three Links.  As a result, the taxpayer-financed medical assistance program is now paying approximately $4,200 per month for D.S.’s care. 

The case is being prosecuted by the Attorney General’s Medicaid Fraud Division.  The matter was referred to the Attorney General’s Office by the Rice County Attorney’s Office.

The Attorney General encourages senior citizens who may be engaged in estate planning, including planning for their potential future incapacity, to fully understand the legal consequences and ramifications of appointing a trustee or attorney-in-fact (power of attorney) to handle their financial affairs in the event of their incapacity.  The Attorney General recommends that senior citizens engaged in estate planning consult with a legitimate, trusted expert in elder law matters.  The Attorney General’s Office publishes Probate and Planning and Senior Legal Rights brochures, both of which contain more information for senior citizens about trusts, guardianship, powers of attorney, and estate planning.   The brochures are available online at www.ag.state.mn.us or by calling 651-296-3353 or 1-800-657-3787.