TRENTON – Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced today that an East Orange man was sentenced to five years in state prison for stealing $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, was sentenced by Essex County Superior Court Judge Michael L. Ravin in Newark. In addition to his prison sentence, Vaughn was ordered to pay restitution in the amount of $50,000. In September, Vaughn pleaded guilty to charges that in August 2013 he began to coerce the victim to withdraw money he held in an annuity from Western National Insurance Company, a subsidiary of American International Group (AIG). A withdrawal in the amount of $50,000 was made before AIG froze the account.

Vaughn began the coercion mere weeks after 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 a hearing 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.

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.

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 and AIG for assisting.

Acting Insurance Fraud Prosecutor Chillemi noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

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