What do you get when you mix tax credentials, fake investments, and an elderly con artist? Apparently, a Ponzi scheme with a side of betrayal and a 12-year prison sentence.
In this publication, we're uncovering a chilling scam that stripped an elderly woman of her entire life savings — all at the hands of someone she trusted. Let’s dive right in.
A retired IRS agent ran a seven-year Ponzi scheme that drained a woman’s $1 million nest egg — and left her destitute.
How It Works:
Elana Cohen-Roth, an 81-year-old tax professional and former IRS agent, met her victim while preparing her taxes in 2013. Over the next several years, she:
- Built a personal relationship with the victim and gained her trust.
- Offered “investment opportunities” promising 10% returns with “no risk.”
- Convinced the victim to transfer sums between $25,000 and $150,000 — over 20 times.
- Used the funds to repay earlier “investors” (classic Ponzi playbook) and bankroll her own lavish lifestyle.
When the victim asked for her money back in 2020, the entire scheme crumbled — there was nothing left.
Who’s Targeted:
This scam specifically preyed on an elderly woman who trusted her tax preparer. Unfortunately, older adults — especially those living alone or with substantial savings — are frequent targets for affinity fraud and financial exploitation.
Real-Life Example:
By the time the scam collapsed, the victim had lost everything:
“The then 73-year-old victim went from owning her own home and having around $1 million in investments to being financially destitute,” the Sonoma County District Attorney’s Office stated.
Meanwhile, Cohen-Roth took out a reverse mortgage on her home, trying to stay afloat until her luck ran out.
She was convicted on 23 felony counts and sentenced to 12 years in prison.
Why You Should Care:
This case is a sobering reminder that even trusted professionals can deceive. Financial predators often look like friends — especially when they use their credentials as a shield. Losing a lifetime of savings can lead to homelessness, emotional trauma, and the inability to afford even basic needs in retirement.
Actionable Steps:
To protect yourself or your loved ones from similar scams:
- Verify all investment opportunities — no matter who’s offering them. A second opinion from a licensed financial advisor is a must.
- Avoid “guaranteed” returns — especially those that promise high rewards with zero risk.
- Review financial statements regularly and question anything that doesn’t add up.
- Set up checks and balances — consider involving a trusted family member or financial advisor when making large financial decisions.
- Report suspicions early — if it feels off, say something.
Quick Tips:
Did you know? Ponzi schemes often thrive in close-knit communities because trust is used as bait.
Pro Tip: Ask any investment advisor or tax preparer if they’re registered with the SEC or state regulators. You can verify their credentials at Investor.gov.
Stay safe, stay informed.
Keyword Definitions:
- Ponzi Scheme – A fraudulent investment scam where returns to earlier investors are paid using funds from newer investors.
- Affinity Fraud – Scams that exploit the trust found within groups or communities (such as religious or professional circles).
- Reverse Mortgage – A loan available to seniors, allowing them to convert part of their home equity into cash, often with long-term financial risks.
- Financial Exploitation – The illegal or improper use of another person’s funds or assets, often targeting the elderly.
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