ALBANY, N.Y., August 14 – A lawsuit and restraining order have been issued to Homeward Bound Services of North America by Attorney General Andrew Cuomo. The Pennsylvania-based company and its owners, Marc Orth and Thomas Muldoon, have been accused of promising services to help keep seniors out of nursing homes and in home-based care settings and then not delivering the services they guaranteed to provide in the agreements.

Supreme Court Justice Joseph D. Mintz signed a restraining order, upon request of the Attorney Generals Office, which bars Homeward Bound from selling or renewing agreements in New York State.

Assisted living services agreements were sold by the company to 600 elderly New York consumers all across the state. Once elderly consumers purchased the agreement, they thought they were pre-paying, at discounted rates, for numerous home care services. Although it cost them thousands of dollars a year, a very small portion of these consumers actually retained any benefit from this agreement. These victims cumulatively paid over $1.2 million for these agreements.

According to Homeward Bound Services, only 45 seniors enrolled in the program actually received home care services since 2004, and Homeward Bound failed to pay for many of them. Also during 2004, only one customer received services within the first year of their agreement.

Because Homeward Bound Services did not pay for the home care services issued to elderly consumers, home care agencies allegedly terminated services to elderly consumers and required that they reimburse them for payments that the company neglected to make.

Homeward Bound Services explained that elderly consumers who purchased an agreement had to call the company to receive home care services. The company would then contract with a local home care provider to supply the home care services. Then the home care provider would bill Homeward Bound for the services provided to elderly consumers.

In addition, according to the attorney general, the company engaged in many other deceptive practices, including: misrepresenting that it established a National Trust Fund and set aside funds to pay for all of the current and future needs of its customers; falsely claiming a business relationship with Lloyds of London; and falsely assuring clients that its agreements were available in all 50 states.

The attorney generals lawsuit seeks to ban Homeward Bound Services from selling the assisted living service agreement unless it posts a bond for $1 million, pays full restitution to all consumers, and pays a $500 penalty for each agreement signed. Cuomo has also requested an additional $60,000 from Homeward Bound, its owners, and affiliate companies.

This company misled and fleeced hundreds of New York States elderly citizens with a fraud that wont be tolerated under my watch, said Cuomo.

Companies that deceive older New Yorkers often do so by preying on their fears and their concerns about going into nursing homes, said Art Mason, director of the Elder Abuse Prevention Program at the not-for-profit seniors advocacy and services organization Lifespan. They often do not present all of the options and facts that are available in a community, and take advantage using high-pressure tactics to effectively separate elderly people from their life savings. This action taken by the Attorney Generals Office will be a tremendous boost to protect seniors in our community both now and in the future.