Hamer Law Group Recovers $3.8 MM in Conservatorship & Custodial Account Case
Birmingham, Alabama-based probate and litigation focused law firm Hamer Law Group recovered conservatorship and custodial funds in the amount $3,856,227.27 on behalf of a Successor Conservator for an incapacitated elderly Gadsden woman. The recovery of conservatorship funds in this case is one of the largest of its kind in Alabama.
The Hon. George C. Day, Jr., Circuit Judge for the Circuit Court of Etowah County, found that Gina Gilbert was in breach of her fiduciary duty as a co-conservator for her incapacitated mother, Patricia Louise Jerome, and as custodian for accounts held for Jerome's granddaughter.
Hamer Law Group attorneys, Chris Hamer and Rebecca Wright, represented the Successor Conservator in the proceeding on the final settlement and accounting of Gilbert’s conservatorship.
“This case represents the most egregious breach of fiduciary duties we've ever seen," Hamer said. "Cases involving misappropriation and misuse of assets by family members appointed as fiduciaries are especially distressing for all involved. We're pleased we were able to obtain a full recovery and justice for Ms. Jerome in this case."
Kelly J. Todd, CPA, managing member and member in charge of forensic investigations for Forensic Strategic Solutions, served as an expert in this case.
"Elder financial exploitation is a pervasive problem," Todd said. "What's most distressing is this type of fraud is most often committed by someone trusted by the victim, as was found to be the situation in this case. Our firm is pleased to have been able to assist in bringing justice to this family."
As of October 25, 2019, local authorities had yet to take any action to prosecute the case criminally.
Background
In August 2017, Gilbert filed a petition for partial settlement with the Probate Court of Etowah County alleging that more than $9,000,000 came into her hands during the prior three-year period of her conservatorship and a mere $2,570,769.26 remained in the conservatorship estate.
The case was removed from the Probate Court to the Circuit Court on February 16, 2018 (Case No: 31-CV-2018-900128.00), and Gadsden attorney Krystal Padula McWhorter, Esq., was appointed as guardian ad litem for the incapacitated person. On March 6, 2018, McWhorter petitioned for the Court to remove Gilbert as conservator.
On March 22, 2018, Gilbert resigned as co-conservator and paid $1,340,899.71 into Court, which she attributed to $305,899.71 for a return of payments to her personal credit card, $760,000.00 to her personal E*TRADE account, and $275,000 to transfers out of the Conservatorship directly to herself.
The Court accepted Gilbert’s resignation and appointed Fort Payne attorney Patrick H. Tate, Esq., as Successor Conservator for Jerome. The Successor Conservator retained Hamer Law Group to represent him in the proceeding on the final settlement and accounting of Gilbert’s conservatorship.
The Successor Conservator asserted numerous objections to Gilbert’s petition for final settlement and accounting, and asserted counterclaims for breach of fiduciary duty, negligence, statement of account, conversion, a claim against the interpled funds, and requested an accounting of custodial accounts held for the benefit of Jerome’s granddaughter.
While serving as co-conservator, Gilbert also acted as custodian and assumed control over custodial accounts for the benefit of Jerome’s granddaughter.
Outcome
On September 30, 2019, Judge Day entered an order finding in favor of the Successor Conservator and against Gilbert in the aggregate amount of $3,462,717.83, which includes the amounts previously paid into Court by Gilbert or paid by her surety, as well as pre-judgement interest, lost profits, attorneys’ fees and costs.
The Court found that “Mrs. Gilbert has breached her fiduciary duty to her mother’s Conservatorship estate, has failed to properly account for her actions and the funds and assets under her control, all of which has caused substantial damage and loss to the Conservatorship Estate and Ms. Jerome.”
Additionally, the Court awarded a judgment against Gilbert in relation to the custodial accounts in the amount of $393,509.44.
UPDATE
On July 16, 2020, Alabama Attorney General Steve Marshall announced the arrest of Gina Cook Gilbert for financial exploitation of an elderly person. “Gilbert is charged with two counts of first-degree financial exploitation of an elderly person for taking property from Patricia Louise Cook Jerome in an amount that exceeds $1,000,000” according to the press release. To read the entire press release from the Attorney General’s office, click here.
RELATED NEWS ARTICLES
Etowah Co. woman ordered to return $3.8 million to mothers estate - Gadsden Times
Judge: Guardian must return $3.8 million in Gadsden case - AL.com
Gadsden woman accused of taking more than $1 million in property from a senior - WBRC Fox 6 News
Gadsden woman charged with taking over $1 million from elderly woman - WBMA ABC 33/40 News
Woman charged with taking $1 million-plus from elderly person - Gadsden Times
Gadsden woman arrested for allegedly taking over $1 million from elderly woman - WIAT CBS 42
In accordance with the Alabama Rules of Professional Conduct, we are required to advise you that no representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. Case No.: 31-CV-2018-900128, Circuit Court of Etowah County. Prior results do not guarantee a similar outcome. Every case is different, and regardless of what friends, family, or other individuals may say about what a case is worth, each case must be evaluated on its own facts and circumstances as they apply to the law. The valuation of a case depends on the facts, the injuries, the jurisdiction, the venue, the witnesses, the parties, and the testimony, among other factors.