In 1996, the California Attorney General and State Bar filed a lawsuit against the Alliance for Mature Americans, a non-law firm trust mill, in the Los Angeles County Superior Court. The lawsuit sought an injunction, more than $200 million in restitution, and more than $3 million in civil penalties.

The lawsuit alleged that the Alliance for Mature Americans used "scare tactics" and unlawful and deceptive business practices to sell living trusts to senior citizens, some of whom suffered from Alzheimer's and Parkinson's diseases, in order to obtain confidential information to sell these persons annuities. The lawsuit also alleged that the Alliance for Mature Americans engaged in the unauthorized practice of law by training non-attorney salespeople to promote themselves as estate planning experts. In April, 1997 the Alliance for Mature Americans agreed to a settlement of the lawsuit whereby it would make restitution of $1 million, pay a civil penalty of $100,000, and discontinue its sales of estate planning services and living trusts.

California residents who have been victimized by a non-attorney legal practitioner are encouraged to contact the state's Attorney General and State Bar, as well as the individual's local District Attorney's office, elected federal and state representatives, the Better Business Bureau, and any appropriate governmental elder abuse or fraud investigatory agency. California residents may call the California State Bar at 1-888-460-SENIORS to report estate planning scams.

Source: David W. Moltzen, Certified Specialist, Taxation Law, The State Bar of California