Wilmington – Attorney General Joseph R. Biden, III today presented a $100,000 check to
Delaware Health Net that will fund the establishment of a discount pharmaceutical program through
Delaware’s community health centers.
In 2004 Delaware and nineteen other states reached an agreement with pharmacy benefits manager
Medco Health Solutions, Inc following an investigation into alleged violations of their consumer
protection laws. As a result, Medco adopted reforms to its business practices and paid more than
$29 million in restitution to affected patients and the states.
According to the terms of the settlement, Delaware agreed to provide its share of the restitution for
the benefit of uninsured or underinsured residents for prescription drug benefits.
“The Delaware Department of Justice has not only acted to enforce our consumer protection laws,”
Attorney General Biden stated. “We’re also using these funds to serve Delawareans with unmet
healthcare needs.”
Delaware Health Net will use the $100,000 payment as start-up capital to establish a program that
will provide low-cost medications through its member health centers. The funding will be used to
hire staff, purchase equipment and software, and build initial inventories. The service will be
established under the federal 340B Drug Pricing Program which requires manufacturers to provide
discounted pharmaceuticals to community health centers and other health care providers.
Delaware Health Net is a statewide non-profit network of community health centers. Its members
include the Henrietta Johnson Medical Center, Delmarva Rural Ministries, and La Red Health
Center. Delaware Health Net seeks to maintain and expand access to health care services for the
medically underserved across Delaware. It serves its member health centers by facilitating
collaboration, sharing expertise, building integrated systems and standards, and developing
information databases. For more information visit www.delawarehealth.net.
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Wilmington –Attorney General Joseph R. Biden, III today announced the launch of an interactive
Web site, sponsored by the Delaware Department of Justice, featuring video webcasts, educational
resources, helpful tools, and reference materials that promote sound investment strategies.
The Investor Resource Center, at www.investorresourcecenter.org, features more than twenty webcasts by investment industry experts that provide lessons on avoiding investment fraud and understanding investment risk. These videos serve all audiences, including young people and families, middle-aged individuals, and mature investors approaching retirement. Myron Kandel, former CNN Financial Anchor, and Jane Bryant Quinn, author and Newsweek columnist, offer the site’s keynote lectures.
“Today Delawareans have unprecedented access to personal investment options,” Attorney General
Biden stated. “Sound investing decisions require the benefit of an informed decision-making process.
Unfortunately, criminals are at work every day employing fraudulent schemes to sell illegitimate
investments or products that promise high returns with little or no risk in an effort to cheat
Delawareans out of their hard-earned investment dollars.”
The Investor Resource Center provides a one-stop shop of helpful references, including investor alerts,
an investment professional background check, online complaint form, and links to tips and other
investor services – all at the click of a computer mouse. The site’s dual purpose of providing
educational information and reporting tools reflects the two-fold mission of the Delaware Department
of Justice to regulate the securities industry by prosecuting securities fraud and educating the public.
“Education is a powerful tool at your disposal to make smart investment choices and combat the
dishonest people who pose a risk to your investment security,” Attorney General Biden continued.
“That’s why the Delaware Department of Justice offers this free resource to consumers.”
The Delaware Department of Justice also offers the 2007 Safe Investing Guide, a printed companion to
the Investor Resource Center. The Safe Investing Guide, currently being delivered as a free insert in
newspapers across Delaware, features tips to steer clear of investor fraud, an overview of online
investing, information about identity theft, and a self-assessment financial health quiz.
The Investor Resource Center and the Safe Investing Guide were funded by fines and penalties paid by
those who have violated the Delaware Securities Act. The Delaware Department of Justice uses these
funds to combat investment fraud and to sponsor investor educational programs.
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Wilmington – Attorney General Joseph R. Biden, III and the Delaware State Police announced
today that a New Castle County Grand Jury indicted Henry Forrest of Selbyville, Delaware and
Theodore M. Forrest of Bear, Delaware for Home Improvement Fraud and Conspiracy.
“The Delaware law enforcement community is taking action to protect the senior citizens
victimized in coordinated and criminal home improvement scams,” Attorney General Biden
stated.
On May 7, 2007, The Delaware Department of Justice was first contacted by State
Representative Gerald Hocker who reported that an Ocean View area resident was being
scammed. The Department’s Consumer Protection Unit opened an investigation which revealed
that on May 3, 2007 an 88-year old homeowner paid the suspects to power wash his roof. After
beginning their work the suspects advised the victim that additional work was required. After
completion of the work the suspects reported that the repairs would cost $4,100 rather than the
$1,300 previously agreed upon. A home inspector from American Home Inspections
Technologies later determined that the suspects failed to do any of the work the victim paid to
have completed.
The investigation revealed three additional acts of fraud allegedly committed by the suspects:
• On May 4, 2007, during an unsolicited visit with an 82-year old Ocean View area
resident, suspect Henry Forrest offered to clean and repair the victim’s roof and power
wash the victim’s home for $750.00. After beginning their work, the suspects reported
further damage that could be repaired for an additional $2,200. The victim wrote a check
to Henry Forrest, who cashed it using a Virginia driver’s license at a bank in Clarksville,
Delaware.
• On March 28, 2007, a 66-year-old Dagsboro resident responded to a card Theodore
Forrest left at the residence. Forrest provided a price to power wash and seal the victim’s
roof and power wash and stain the home. After beginning the work, Forrest reported
chimney damage requiring repairs. The victim advised Forrest to complete the work.
But, after noticing substandard workmanship, the victim directed the work to stop.
Forrest insisted the work was complete and demanded $6,050 payment which the victim
provided. A home inspector later found that none of the work had been completed.
• On July 26, 2006, during an unsolicited visit with an 88-year-old Lewes area resident,
Theodore Forrest claimed that he could make the home’s roof look like new for $500
using a rubberized protective solution. A worker mixed seven bags of powder with the
assistance of the victim and applied it to the roof. Afterwards, Forrest added a $1,500
charge, arguing seventeen bags of powder were required. After the victim insisted that
seven bags were used Forrest agreed to a total charge of $1,380 if paid immediately.
After the next rainfall, the victim discovered multiple leaks from the roof.
As a result of the investigation, the Delaware Department of Justice and the Delaware State
Police believe that the additional damage the suspects reported in these cases was created by the
suspects themselves. Investigators believe that the suspects then power washed water onto the
damaged area to allow water to leak into the houses.
After completing its initial investigation in early August, the Department of Justice contacted the
Delaware State Police. Detective J.S. Evans in the Financial Crimes Unit at Troop 4 was
assigned to the case and the investigation continued. As a result of the joint investigation a grand
jury indicted the two known suspects, Henry Forrest and Theodore M. Forrest, on August 27,
2007.
On September 4, 2007 Delaware State Police detectives arrested Henry Forrest, of Selbyville,
Delaware at his home without incident. He was charged with two counts of Home Improvement
Fraud, two counts of Felony theft, and two counts of Conspiracy Second Degree. He was
arraigned and released on $6,000 unsecured bond.
The indictment also charges Theodore M. Forrest, also known as Edward Powers, of Bear,
Delaware. Theodore M. Forrest is charged with four counts of Home Improvement Fraud, four
counts of Felony Theft, and two counts of Conspiracy Second Degree. He has not yet been
apprehended and is currently wanted by the Delaware State Police. Anyone with information
regarding the whereabouts of Theodore M. Forrest is asked to contact the Delaware State Police
at (302) 856-5850, call 911, or contact Crimestoppers at (800) TIP-3333.
The Delaware Department of Justice and the Delaware State Police strongly urge anyone who
feels they may have been victimized by these suspects, Henry Forrest and Theodore M. Forrest,
to immediately contact the Delaware Department of Justice Consumer Protection Unit or the
Delaware State Police. At the Department of Justice, please contact Special Investigator John
Desmond at (302) 856-5353 ext. 108. At the Delaware State Police please contact Detective J.S.
Evans of the Troop 4 Financial Crimes Unit at (302) 856-5850 ext. 214.
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