The money must be paid back. That’s the opinion of two Pennsylvania Superior Court judges regarding a local bank, a life savings and questions of judgment.
The judgment of both an 84-year-old man diagnosed with "progressive dementia" and that of two bank managers who agreed to let the man leave them $700,000 was at the heart of the case.
And last month, the Superior Court upheld a May 2003 decision issued by Philadelphia Orphans Court that the money belonged to the bank customer’s niece, not the managers. The women worked at the 19th Street and Snyder Avenue branch of Prudential Savings Bank, which had appealed the lower court ruling.
Prudential and the longtime employees involved — manager Frances Mazzei and assistant manager Lucia Squitieri — were sued more than a year ago over the life savings held in an account at the bank. The account holder, Carmen DiCesare, a retired sign painter, died June 13, 2001, at age 84.
DiCesare lived on the 2000 block of South 18th Street for most of his life. He had no children and did not have a will.
DiCesare’s niece, Theresa Owen of Tabernacle, N.J., who serves as administrator of her uncle’s estate, hired lawyer Karl Prior to argue in Orphans Court that DiCesare suffered from "progressive dementia," and did not know what he was doing when he made Mazzei and Squitieri the beneficiaries of his life savings. The two women opened a trust account, also known as an ITF account, for DiCesare, and put the account into trust for themselves.
According to the lower court’s decision, Mazzei and Squitieri did not act within certain banking laws and procedures when opening DiCesare’s account.
The bank employees argued that they had a friendship with DiCesare and, lacking close family members, he chose to name them his beneficiaries.
In May 2003, Orphans Court Judge Joseph O’Keefe ordered Prudential, Mazzei and Squitieri jointly liable for $563,767.40 — the $700,000, less funeral expenses and court fees.
The three defendants appealed to the higher court almost immediately.
In its opinion, the Superior Court wrote that Mazzei and Squitieri "exercised undue influence over [DiCesare] to cause him to name [them] as the sole beneficiaries of his account."
The opinion also stated that "negligence and inconsistency permeate the bank’s environment."
"Theresa is not surprised by the decision," said Prior, Owen’s attorney.
But the saga might not be over just yet.
Prudential can appeal to the Pennsylvania Supreme Court.
"We have a right to appeal, and that right has not been exercised right now," said Jerome Balka, the bank’s counsel.
Attempts to contact Salvatore Larussa, the attorney who represented Mazzei and Squitieri, as well as bank management, were unsuccessful.
Balka and a worker at the Prudential branch confirmed that Mazzei no longer works there. Squitieri has reportedly left the company as well, although officials would not confirm that.
Safety nets for seniors
The Philadelphia Corporation for the Aging works closely with several financial institutions to ensure that workers can identify "red flags" when dealing with the finances of the elderly.
"Financial exploitation of the elderly is underreported," said Joe Snyder, director of Older Adult Protective Services at the PCA. "We have been working with Wachovia National Bank, among other banks, to train their employees to work with older people, and prevent exploitation from occurring."
According to the PCA, the most important ways to avoid becoming a victim of financial exploitation are to refrain from giving personal information to anyone you don’t know, especially on the Internet or over the phone, and to give someone you can trust power of attorney, so that your money can be protected.
For more information about the services the PCA offers to protect the elderly, call 215-765-9000 or visit www.pcaphl.org.
