In the past two years, two attorneys, described to the public as “prominent” elder law attorneys, have been arrested on charges stemming from the theft of substantial assets from their clients. In March 2015, Barbara Lieberman, an attorney who practiced in Atlantic County, was sentenced to ten years in state prison for her role in multiple acts of theft perpetrated against her former clients.
Last week, Robert Novy, an attorney in Ocean County, was arrested on charges that are very much reminiscent of the charges against Ms. Lieberman. The acts of Ms. Lieberman are in no way related to the acts that Mr. Novy allegedly committed. And, since Mr. Novy has only been charged and has not been tried and convicted, I will say that the charges of theft that have been leveled against him are based upon alleged facts that have not been proven in a court of law.
The stories of Ms. Lieberman and Mr. Novy are interesting to me for several reasons. As an elder law attorney and the former Chair of the Elder and Disability Law Section of the New Jersey State Bar Association and current Chair of the Litigation Committee of the National Academy of Elder Law Attorneys, I condemn the actions of Ms. Lieberman and the alleged actions of Mr. Novy.
I have concentrated my practice in elder law for the past seventeen years. I believe that I know or have at least heard of every experienced elder law attorney in this state.
One of the things that was odd to me about Ms. Lieberman’s arrest and subsequent conviction was the fact that I had never heard of her before her arrest, yet the press described her as “prominent.” In fact, the vast majority of my elder law colleagues were similarly struck by their lack of knowledge of this supposedly prominent attorney.
As for Mr. Novy, I have heard of him for many years. I have never met him, and I don’t believe I ever had a legal matter in which he represented a party. I knew he hosted a radio show called Inside the Law, which focused on elder law.
My guess would be that Mr. Novy paid for his air time with the radio station and that he was not an employee of the radio station, but I have no actual knowledge of this. I also believe he presented seminars on elder law to the general public. My guess is these were dinners or luncheons in which he would offer food and beverages to those willing to listen to his talk. On his website, he describes himself as follows: “Today he is one of the most respected and sought-after Elder Law attorneys in Ocean and Monmouth counties.”
Because Mr. Novy has been practicing elder law for a number of years and because he heavily marketed his practice, I would say—unlike Ms. Lieberman—that he was prominent or well-known. But Mr. Novy is not a certified elder law attorney. Mr. Novy lists no merit-based awards on his website, such as a Super Lawyer Award in the practice of Elder Law. These are awards/certifications of which an attorney can be proud.
I believe that the one thing the general public can learn from the stories of Ms. Lieberman and Mr. Novy is from the methods used to perpetrate the thefts (or alleged thefts) upon their victims. Both Ms. Lieberman and Mr. Novy served as power of attorney agents for their clients. Mr. Novy also served as trustee of trusts that his clients had drafted to hold their assets, most likely revocable living trusts.
Power of attorney agents and trustees act without court supervision in most instances. While acting without court supervision has its benefits—lower cost of administration, no public access to information—a lack of court supervision can have its extreme downside, as these stories prove. I have been saying this about living trusts for many years.
In my opinion, if your lawyer is pushing to serve as your power of attorney agent or as the trustee of a revocable living trust that he or she drafted for you, you should think twice about using that attorney. In many cases there may be no harm in the attorney serving in those roles, but the potential for harm is so high that an offer to serve in those roles unsolicited by you, the client, should be cause for significant pause and deliberation.
Being aware of unethical practices in elder law helps you choose the right professionals and safeguards your family’s interests. Knowledge is key to avoiding unnecessary problems.
Decisions in this space often carry long-term consequences, which makes the quality of advice especially important. When strategies are built on incomplete or misleading information, the results can be difficult to undo. Taking the time to evaluate the source and substance of that guidance can help avoid unnecessary complications.