Guardianship News:

Guilty Trust Manager Paul Donisthorpe

New Mexico: Victims of Desert State still waiting for restitution, more than one year after Donisthorpe’s guilty plea

August 12, 2018 // 1 Comment

By Colleen Heild / Journal Investigative Reporter Saturday, August 11th, 2018 at 11:30pm A woman known in court records as “J.W.” died destitute this year. But she had once been a co-beneficiary of a $600,000 trust at the now-defunct and disgraced Desert State Life Management company of Albuquerque. Her money, along with savings and trust accounts of more than 70 other vulnerable people who were clients of Desert State, were part of the estimated $4.8 million embezzled by company CEO Paul [- more...]

New Mexico: New legislation gives regulators more power – but will they exercise it?

August 12, 2018 // 1 Comment

New Mexico financial regulators learned their lesson the hard way after discovering in early 2017 that millions of dollars had been embezzled from clients at the small nonprofit Desert State Life Management. The state Financial Institutions Division of the state’s Regulation and Licensing Department headed to the Roundhouse in Santa Fe this year to seek new laws to help prevent another such criminal scheme, which went undetected for years. “Unfortunately, it was a reactive response. But [- more...]

New Mexico: Plea bargain catches victims by surprise

November 30, 2017 // 0 Comments

 By Colleen Heild / Journal Investigative Reporter Federal law says crime victims have a right to “reasonable and timely notice” of any public court proceedings involving the crime. But Paul Donisthorpe’s sudden plea bargain Monday in a high-profile $4 million trust fund embezzlement scheme caught victims by surprise. Armando Ramirez, of Santa Teresa, helps support his brother Omar Ramirez, who lost nearly $1 million in a trust account managed by Donisthorpe that was supposed to pay for [- more...]

BREAKING NEWS – New Mexico: Former Desert State Life CEO pleads guilty in Federal Court to fraud, money laundering

November 28, 2017 // 0 Comments

ALBUQUERQUE, N.M. — The former CEO of Desert State Life Management pleaded guilty to wire fraud and money laundering in federal court Monday morning. Paul Donisthorpe, 62, will be sentenced to eight to 12 years in prison, according to the recommendation in his plea agreement. He also must pay $4,812,857 in restitution to the victims of his crimes. Donisthorpe ran a decade-long scheme in which he stole more than $4.8 million from more than 70 of his company’s clients. Many of them had [- more...]

New Mexico: Guardianship firm seized by marshals

July 20, 2017 // 0 Comments

By Colleen Heild / Journal Investigative Reporter Wednesday, July 19th, 2017 at 11:45pm A Final Four basketball junket. Caribbean cruises and other luxury vacations. Purchases at an Albuquerque RV Center and a Mercedes-Benz dealership. The alleged lavish spending by the co-founders of one of the state’s largest nonprofit guardianship firms was financed out of the accounts of their special needs clients, according to the U.S. Attorney’s Office. And on Wednesday, a multiagency federal task [- more...]

New Mexico: Turning the Law against the innocent

July 6, 2017 // 1 Comment

Turning a corrupt Judiciary against Citizens The Desert State Life Management Scandal in New Mexico is an excellent example of how a judicial system charged with protecting the lives and assets of seniors has not only failed miserably to do so, but has used its authority and endless decision-making latitude to actually turn the law against the vulnerable innocent citizens of New Mexico. As yet another example of the probate racket having completely overtaken any semblance of judicial propriety [- more...]