Poplar Bluff councilman sued for $150K fraud of man in veterans home

POPLAR BLUFF, Mo. -- A Poplar Bluff city councilman and two members of his family have been named in a civil suit that claims they defrauded an elderly former neighbor for more than $150,000 in cash and property after the death of the man's wife and his cancer diagnosis.

The case was filed against David Johnson, a council member at large; his wife, Cynthia Johnson; and their daughter, Amy Johnson; in May in Cape Girardeau County. It is scheduled for a case review Sept. 6 before Judge Benjamin Lewis.

Kenneth Burke, 92, is a resident of the Missouri Veterans Home in Cape Girardeau. He and his wife lived for about 30 years in Poplar Bluff, across the street from the Johnsons' home.

Johnson said Saturday the interactions occurred between Burke and his wife and daughter.

"I wasn't really involved, but I thought they were legal, and I still think they're legal," Johnson said. "I don't know what all happened, and I can't comment until I know more."

Johnson said he first found out about the allegations Friday when he was served by the court. He will be consulting an attorney, Johnson said.

Burke claims Cynthia Johnson acquired the title to his home, vehicle and cash since the death of his wife in 2010 through fraud, according to court documents.

"(The) plaintiff and defendant Cynthia Johnson developed a relationship of trust and confidence, and plaintiff believed that defendant Cynthia Johnson had his best interest at heart and in mind," the complaint states.

Burke is asking the court to award monetary and punitive damages in the amount the court deems fair and reasonable.

David Johnson is accused of benefiting from the fraud and should have been aware of his wife's action, the complaint states. Funds allegedly obtained by Cynthia Johnson passed through the couple's joint checking account.

It alleges Amy Johnson conspired with her mother to obtain the title in 2014 to Burke's home, valued about $150,000, for a "sham consideration" of $10. Amy Johnson lives at the home.

Attorney Alexa Hart-Lorenz, who is representing Burke, said in court documents Cynthia Johnson first became involved in her neighbor's financial affairs when his wife was hospitalized and died in early 2010. She helped pay bills and manage other financial matters, which continued when Burke was diagnosed with bladder cancer in late 2010.

In 2012, Burke gave Cynthia Johnson durable power of attorney to handle certain financial matters and named her as his personal representative and sole beneficiary.

She received a flat payment of $15,000 for her assistance, Hart-Lorenz said.

The complaint states she worked to sever Burke's relationship with his out-of-state relatives and opened bank accounts in his name without his knowledge.

"The defendant Cynthia Johnson failed to apprise plaintiff of relevant facts and kept silent in an effort to gain control over each and every asset owned by plaintiff, deceived plaintiff by virtue of shielding him from important information which, if known, would have caused the plaintiff to take or refuse to take certain actions," according to the complaint.

Burke revoked the power of attorney in April 2015, but he claims Cynthia Johnson continued to try to access his accounts using "deceit and misrepresentation."