Politically Connected Broker Pushed Senior Into Reverse Mortgage, Says Lawsuit

A current member of the Council of Calistoga, California, who is also a broker, faces a hearing this month. A lawsuit accuses Councilmember Scott Cooper, along with his company, of exploiting an elder financially.

Senior “Preyed Upon” for Home Equity

The lawsuit describes the Calistoga city councilmember as “cajoling” an older deed holder to take out a reverse mortgage that benefited him at the senior’s expense.

Filed in Napa County Superior Court this spring by the elder’s daughter-in-law, the lawsuit alleges that Councilmember Scott Cooper, owner of Cal Green Lending, “preyed upon” 84-year-old Cheryl West. Cooper knew, according to the lawsuit, that West lacked capacity to sign for the reverse mortgage.

Plaintiff Marla Faust has standing to sue, as the trustee for the Cheryl J. West trust, and the named executor of West’s estate. Faust claims that Cooper committed financial elder abuse and breached his fiduciary duty as a broker — that is, the duty to act in a client’s best interests.

Many senior mortgage holders have built up high levels of home equity. A reverse mortgage enables a homeowner to use that equity to receive, rather than make, monthly payments. These loans are lucrative for lending companies, which collect interest.

What the Elder’s Power of Attorney Holder Has Alleged

The facts alleged in power of attorney holder Marla Faust’s lawsuit are as follows:

• Cheryl West, aged 84 in 2020, owned a home worth around half a million dollars on Cedar Street in Calistoga, California.

• When Cooper approached West at home to suggest a reverse mortgage, West directed Cooper to communicate with Marla Faust, who held power of attorney.

• Cooper called Faust, the deed holder’s daughter-in-law, during that first visit to West’s home. Faust told Cooper that the 84-year-old did not need or want a reverse mortgage, and lacked mental capacity to understand the loan agreement.  

• Cooper “persisted” in promoting the loan product to West, behind Faust’s back.

• Ultimately, the senior signed the mortgage documents, accepting the idea that she needed money for a car (although she couldn’t drive) and to put a new roof on the home (which was not needed).

The elder deed holder signed onto the mortgage despite Faust holding power of attorney and Faust’s rejection of the loan idea. Faust found out about the transaction early last year. Soon after that, the elderly homeowner, Cheryl West, died.

Lawsuit in Civil Court Claims Abuse, Requests Compensation

The elder homeowner paid about $21K for insurance and closing costs. Her home equity sank. Faust claims the Cedar Street home had to be sold due to the financial impact of the reverse mortgage.

Faust’s lawsuit makes claims of financial elder abuse, conduct equivalent to fraud, and unfair business practices, including dealing in predatory lending. Faust now wants the court to undo the loan. The pending lawsuit also requests monetary compensation of about $128K and interest, plus court costs and attorney fees.

The defendant, Cooper, responded in June to the legal filing. Cooper said that the claims are “unsupported by any factual basis” and says West was mentally competent and pursued the reverse mortgage herself. Cooper also claimed that his conduct unfolded in the course of his business, and that he is not personally liable for any breaches of duty.

Cooper has been a city councilmember since 2023. He is slated to remain in office through 2026.

Could Someone Be Trying to Manipulate You or Your Home Equity?

Reverse mortgages are good financing tools for many seniors. But understand that some lenders may take advantage of seniors’ home equity through such products.

If you believe you or a loved one is being targeted, you can report suspected mortgage fraud to the U.S. Consumer Financial Protection Bureau.