TRENTON – Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor announced today that an East Orange man pleaded guilty to charges that he stole $50,000 from a fellow resident of a senior citizens home, coercing his dementia-stricken 90-year-old neighbor and friend into withdrawing the money from an annuity account as the state Office of the Public Guardian for the Elderly began protecting the victim’s finances.

Gilbert Vaughn, 64, pleaded guilty to second-degree insurance fraud, third-degree unlawful theft by taking and fourth-degree identity theft before Superior Court Judge Michael L. Ravin in Essex County. Under the plea agreement, the state will recommended that he serve five years in state prison. Sentencing was scheduled for November 14.

On July 24, 2013, the victim was placed into a state guardianship by the New Jersey Public Guardian's Office following its determination that the he was suffering from dementia, and that family members were unable or unwilling to assist him. Vaughn attended at least three hearings on the matter and testified as a witness that the guardianship was necessary to protect the victim from his children, who were taking advantage of their father’s finances. Subsequently, in August 2013, the defendant began to coerce the victim to withdraw money he held in an annuity from Western National Insurance Company, a subsidiary of American Insurance Group (AIG). A withdrawal in the amount of $50,000 was made before AIG froze the account.

“This defendant seized on the vulnerable state of his so-called friend, taking for himself the financial lifeline of a nonagenarian who had worked hard to secure his retirement,” said Acting Attorney General Hoffman. “Some in New Jersey’s elderly population are able to rely on their family or friends to assist them with their financial affairs. The victim in this case, sadly, was not that fortunate. Mr. Vaughn was certainly no friend. He was a criminal who viewed the victim as easy prey.”

On June 3, 2014, Vaughn was arrested by Bloomfield Police while using a car owned by the victim. When Bloomfield Police pulled Vaughn over, Vaughn produced victim’s driver's license and claimed he was the victim.

“Vaughn was well-aware of the victim’s diminished capacity and had followed the Public Guardian’s legal proceedings closely,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “His crimes are disturbing, especially given that he exploited a susceptible man with dementia.”

Deputy Attorneys General James Carey and Michael Locke and detectives Eric Flickinger and Brian Bunn coordinated the investigation. Acting Insurance Fraud Prosecutor Chillemi thanked the Office of the Public Guardian for the Elderly for referring the matter.

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