Massive Elder Fraud Case

Defendant in massive elder fraud case testifies
By: JOHN HALL - Staff Writer

Daniel Heath says he believed his companies operated legally.
CORONA -- Daniel William Heath, at the center of the largest case of elder fraud in Riverside County history, calmly told jurors Monday how he started and ran various investment entities after first consulting with attorneys who, he contends, led him to believe the firms were legal.Prosecutors, however, contend that an estimated 1,700 victims nationwide -- including many from the Hemet and Sun City areas -- lost a total of about $190 million after investing in those entities, which include D.W. Heath & Associates, Private Capital Management Inc., also known as Private Collateral Management Inc. -- both called PCM, and PCM Fixed Income Fund I LLC.
Many of the alleged victims are seniors, some of whom have previously testified that they invested their life savings with Heath. Prosecutors say Heath was involved in a Ponzi scheme in which money coming in from new investors was used to pay earlier investors.

Heath, 51, of Chino Hills; his father, John William Heath, 81, of Covina; and Denis Timothy O'Brien, 53, of Yorba Linda, face a variety of felony charges, including selling unqualified securities, elder abuse, violating a court order to stop selling securities, selling securities by misrepresentation, grand theft, burglary and money laundering. Each has pleaded not guilty to all the counts and allegations.Daniel Heath took the witness stand on his own behalf Monday in a Corona courtroom, where jurors have heard testimony and viewed documents for nearly two months. The trial started in late August.

Heath also described for the jury how he started his marketing company that conducted seminars, something he said was "sort of cutting edge" in the early- to mid-1990s to find investors. They also made "cold calls" to people and purchased lists to do direct mailings, he said.

"Age wasn't an issue," Heath said.

The criteron was that the people the company was looking for had money to invest, he said.


Abridged Article: The Californian

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Another case of Financial Elder Abuse. Obviously, there are laws to see that the perpetrators are prosecuted and punished.
The more important questions:

• Will the victims see the return of their life-savings?
• If there were no laws to protect their life-savings, why not?