« Photo: Building a house to call a home | Today | Update: Bomb in Worden Pond posed no threat »

September 13, 2007

Lawyer: Va. daughter took much of Eifrig's money

PROVIDENCE -- In a stunning development, a lawyer for a demented 90-year-old woman told a Superior Court judge today that the woman’s Virginia daughter took more than $300,000 of her mother’s money and deposited it in accounts in her own name, without ever disclosing to him or the mother’s court-appointed guardian that the money existed.

The funds represented about 40 percent of retired schoolteacher Laurette Eifrig's life savings, control over which has led to a long and bitter court battle between two sisters, one of whom lives in Rhode Island.

By late this morning, the daughter in Virginia, Francine Ardito, of Reston, had returned $251,183.27 of the money she had taken.

The money arrived by overnight Federal Express mail, as Superior Court Judge Alice B. Gibney was weighing whether to proceed with a scheduled contempt hearing against her.

She’ll have to repay her mother another $5,000. The rest the judge approved as payment of legal fees to Ardito’s Rhode Island lawyer, Janet Mastronardi, whom Ardito hired in her unsuccessful bid to become her mother’s guardian.

Gibney continued the contempt hearing until Oct. 11. Ardito -- who is currently barred by court order from visiting with her mother -- was ordered to provide a full accounting of Eifrig’s assets by then.

If she does -- and there are no other unforeseen developments -- the battle between Eifrig’s daughters over where their mother should live and who should have control of her money may finally end.

-- Journal staff writer Tracy Breton

Continue reading for the latest. Find more about this story in Tracy Breton's continuing report on elder abuse.

It was supposed to end over a month ago when Gibney signed off on a settlement agreement. The settlement would allow Eifrig to remain living in Rhode Island as she desires but also cost her $186,000 in lawyer and guardian fees -- including $60,122.49 for daughter Ardito’s lawyer.

But the settlement got stalled when Eifrig’s lawyer, Richard A. Boren, and her court-appointed guardian, Paula M. Cuculo, learned that Ardito had used some of her mother’s money, without court approval, to pay Mastronardi and to hire a Virginia lawyer to undo orders issued by Gibney.

Then, earlier this week, they learned from the Virginia lawyer that Ardito had taken almost $302,000 of her mother’s money out of her trust and put the money in various accounts in her own name.

James P. Head, Ardito’s Virginia lawyer, said in a letter to Boren that the reason his client had transferred the money was “to prevent her sister from accessing them.”

He said Ardito did this shortly after her older sister, Suzette Gebhard, a one-time congressional candidate and the former head of the Rhode Island League of Women Voters, moved their mother from Virginia to her house in Warren, without notifying Ardito. At the time of the move, in May 2006, Ardito had power of attorney for her mother and was co-trustee of her mother’s trust.

Head insisted in his letter that Ardito’s transfer of the money was “expressly permissible” under Virginia law because Eifrig’s trust gave her younger daughter the power “to hold property in her name or in the name of nominees.”

But Eifrig’s lawyer, Boren, disputed that today. He said he is “deeply troubled” by Ardito’s actions. Her ailing mother, who is now blind and also suffers from Alzheimer’s disease, needs her savings to continue to be able to afford her $4,900-a-month rent at Capitol Ridge, her assisted-living residence on Smith Street in Providence.

And Boren pointed out that even though Eifrig had testified in summer 2006 that she had about $735,000 in savings at the time of her move to Rhode Island, Ardito had given sworn testimony to Gibney in mid-2006 that the amount she was holding in her mother’s trust was $500,000 to $600,000.

Eifrig, he said, “testified on the mark…In fact it is approximately $725,000.”

Eifrig’s court-appointed guardian, lawyer Paula M. Cuculo, went further. She called Ardito a liar who had engaged in “a cover-up.”

“Who was she protecting the money for? Her or her mother? The excuses her Virginia attorney has come up with are blatantly false. There was no need to put money in her own name when Smith-Barney (a brokerage company) had agreed to freeze all of the funds, and she in fact had deposited several of Laurette’s accounts into the Smith Barney, She could have put all of the money in there.”

Cuculo said that since she first met Ardito in the summer of 2006, “she has repeatedly told me that the only money she was holding for her mother was between $400,000 to $500,000 and that she’d made a mistake on the stand” in claiming there might be $600,000. In fact, it there was much more so it was a cover-up.”

Head, Ardito’s lawyer, has repeatedly said in interviews that Ardito only has her mother’s best interest at heart. But Cuculo disputed that today.

“If she was truly putting the money into her own account to protect it…then she had an obligation to disclose what she had and she repeatedly lied about it. Had Richard and I not asked for Laurette’s tax returns as part of an accounting, I think that’s when she realized we were going to find out about these other funds.”

After Boren received the emoney from Ardito at his law office, he turned over the four checks -- all payable to Cuculo -- who promptly mailed them to an investment adviser in New York who is handling Eifrig's investments.

Posted by Mike McKinney  at 4:00 PM | Permalink

Comments

Post a comment

Please be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish.




Remember Me?

(you may use HTML tags for style)

ADVERTISING



ProJo 7 to 7
Aug « Sep 2007 » Oct
Su Mo Tu We Th Fr Sa
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    
Archived headlines

Archived
ProJo 9 to 5 News Blog
Oct 2005 - March 2006