Sisters charged in scheme to keep disabled father's money away from family members

Mark Wasson, Post-Bulletin, Rochester, Minn.
Updated ·4 min read
11

Jan. 27—RED WING — A pair of sisters are facing felony charges related to a scheme to keep their father's trust fund money out of the hands of other family members and into the hands of their children, according to new charges filed in Goodhue County.

Kaia Jeanne Bergeson, 63, of Montevideo, and Koreen Harstad, 70, of Weimar, Texas, are both charged with felony financial exploitation of a vulnerable adult. A court date has not been set for either woman.

While their charges list a total value of $35,000 stolen from their father, the pair's children received $231,000 from him in February 2022 and January 2021.

The annual loss experienced by victims of financial abuse is estimated to be at least

$36.5 billion in the United States

, according to the National Council on Aging.

"These incidents can have profound impacts on victims and families," Renee Stromme, communications manager with the Minnesota Elder Justice Center wrote in an email to the Post Bulletin. "It causes a decline in emotional and physical health; immense family strife; and loss in quality of life and possible shortened life span."

Both Bergeson and Harstad, the family member who reported the alleged abuse, the man's power of attorney and the Goodhue County Attorney's Office did not respond to requests for comment.

Over half the cases of reported elder abuse have a family member as the primary perpetrator, according to Stromme.

In a written report, an officer noted during a meeting with the father that he was in a wheelchair, had to use a magnifying glass to help him see better, the conversation was had sitting "knee to knee" and investigators had to frequently repeat themselves.

Signs of financial exploitation may include:

* An elder who lacks the basics even though he or she should have sufficient resources;

* An elder pressured to sign a document or new Power of Attorney;

* An elder, family member, or friend with a known gambling, drug or alcohol dependency;

* The erratic use of an elder's funds or personal needs allowance by family members or

fiduciaries;

* The sales of an elder's valuables to friends, facility staff or others.

According to the criminal complaint:

The Kenyon Police Department was notified in March 2022 of the alleged financial abuse following a Minnesota Adult Abuse Reporting Center report from a concerned family member.

The father lives in a Kenyon senior facility and he meets the definition of a vulnerable adult as outlined in Minnesota statute.

Both Bergeson and Harstad, along with their children, are in line to receive their father's trust fund money, as are several other family members.

The sisters conspired to have their father run out his checking and savings accounts in order to have him live off of money in the trust fund slated for multiple family members, the family member who reported the abuse told law enforcement.

Their father initially set up a trust fund for his seven children, though only three are currently alive. The money was then supposed to go the man's grandchildren.

The sisters approached their father's power of attorney, the husband of the man's late daughter, in January 2021 about giving their children money.

The man issued each of their seven children $5,000 checks.

"(The power of attorney) was skeptical of this, but thought this would be the end of it," the complaint states. "(He) thought after the initial 'gift' there would be 'no more bugging him about money.'"

On Feb. 11, 2022, Bergeson called the power of attorney and requested $20,000 from her father for each of her children. The man said no, and Bergeson tried to negotiate for $10,000 checks. The power of attorney told her that she should not do that.

A total of six checks, each for $28,000, were made out to the children of both Bergeson and Harstad, dated Feb. 15, 2022. The man told law enforcement that the sisters did not ask him to write those checks and neither of them were present when he did, though the man said he regretted writing them. Bergeson and Harstad are not facing charges for those checks.

A seventh check was also made out to one of the grandchildren but the power of attorney, when he was contacted by the bank, instructed the banker not to cash it.

People who suspect elder abuse is happening can make a report to the Minnesota Adult Abuse Reporting Center at 1-844-880-1574 or receive support by calling the Minnesota Elder Justice Center at 651-440-9312.