Fraud Scheme Leaves Elderly Man Homeless in Orange County
A recent case reported by the Department of Justice highlights a devastating fraud scheme affecting an elderly man from Orange County, who lost nearly $2 million due to deceitful practices orchestrated by John Tamahere McCabe, a 42-year-old from Kailua, Hawaii.
The Fraudulent Scheme
According to authorities, the victim, whose identity has not been disclosed, was initially approached by McCabe with offers to assist in selling his yacht. Unbeknownst to the victim, McCabe employed fake documents to illegally transfer the yacht’s ownership into his own name.
Financial Manipulation and Consequences
Once the yacht was under McCabe’s control, he directed the proceeds from its supposed sale into his personal bank account, using the funds for his own expenses. In a further maneuver, McCabe encouraged the victim to place his million-dollar home in Irvine into a limited liability company (LLC) that he controlled. Without the victim’s knowledge, McCabe acted as the sole manager of this LLC, which enabled him to secure loans worth $1 million against the victim’s home, thereby draining its equity.
Ultimately, McCabe defaulted on these loans, leading to the foreclosure of the victim’s residence and resulting in homelessness for the 78-year-old man.
The Legal Outcome
On Thursday, McCabe pled guilty to one count of wire fraud, a charge that could result in a maximum prison term of 20 years. This case underscores the vulnerabilities faced by the elderly in financial matters and the serious repercussions of fraudulent schemes.
Support for Victims of Elder Fraud
The Department of Justice emphasizes the importance of protecting senior citizens from financial exploitation. If you or someone you know is 60 years of age or older and has experienced financial fraud, assistance is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).