Financial Exploitation

1. Financial Exploitation For Court Officials NYC Elder Abuse Training Project

2. Financial Exploitation • Illegal or improper use of the resources of an older person for personal benefit, profit or gain • Can involve misuse of a Power of Attorney • Fastest growing form of elder abuse in New York State

3. Signs in Victim’s Environment • Deviations in financial habits • Numerous unpaid bills • Checks made out to cash • Little money while awaiting next check • Elder unaware of monthly income • Disparity between assets and lifestyle • Personal belongings missing • Lack of amenities elder can afford • Recent will when elder incapable • Unprecedented transfer of assets

4. Signs in Abuser • Receives frequent expensive gifts from elder • Asks only financial questions, not caring questions • Refuses to spend money on elder • Misuses power of attorney

5. Typical Perpetrator • Unemployed relative • Child or grandchild • Financially dependent on victim • Substance abuser, gambler and/or emotionally disturbed

6. Other Perpetrators • Paid caregivers • Friends • Fiduciaries

7. Can Be Devastating • More upsetting than theft by a stranger • Trust has been violated • May deny or minimize

8. Criminal Charges • Misdemeanors: Petit Larceny, Forgery, Fraudulently Obtaining Signature, Unlawful Use of Credit Card • Felonies: Burglary, Forgery, Grand Larceny, Grand Larceny by Extortion, Robbery, Scheme to Defraud

9. Bank Withdrawals • Unexplained withdrawals usually in round numbers • Senior’s life savings may be withdrawn • To investigate, forensic accountant will track pattern of banking for one year • Banks will often cooperate to block an account if asked by police or courts

10. Joint Accounts • Relative, friend or home care worker may open a joint account with the senior • Gives them legal right to withdraw money • If exploited, little can be done unless senior did not have capacity when signing papers to open the joint account

11. Misuse of Power of Attorney • Person designates an agent to act on their behalf • Covers only financial matters • Can be an effective tool • Not legal if person signing lacks mental capacity or is coerce • Criminal case if obtained illegally or if funds are misused

12. Forgery of Checks • In cases of forgery, bank must restore funds • If a senior signs blank checks, must prove criminal intent • Seniors with dementia may not remember signing the check

13. Other Types of Exploitation • Forgery of checks • Misuse of ATM or debit cards • Fraudulent wills or property transfers • Theft of money or property by home care worker • Theft by Fiduciaries

14. Capacity • Exploitation cases can hinge on capacity of victim to sign financial documents

15. Testamentary Capacity • Person has enough mental capacity to • Understand what a will is • Recollect the nature and extent of his property • Understand relationship to his living descendants and others who will be affected

16. Capacity to Sign Contracts • Understanding what a contract is and the consequences of the contract • For proper consent, person must • Understand the transaction • Have mental capacity to contract • Act voluntarily, free from threats of force

17. Testimonial Capacity • If impaired person lacks testimonial capacity, court may decide to admit unsworn testimony court deems he or she is intelligent enough to add important information

18. Undue Influence • Term denoting excessive pressure • Using role and power to exploit the trust, dependency and fear of the victim • Consequences can be devastating for victim

19. Factors that increase vulnerability • Recent bereavement • Physical disability • Isolation • Lack of knowledge of one’s own finances • Cognitive impairment

20. Perpetrators • Start with trusting relationship with victim • Family members • Caregivers • Neighbors, friends • Con artists • Fiduciaries

21. Actions to Gain Control • Isolate victim • Convince victim no one else cares • Make victim dependent

22. Resources for Financial Management • Adult Protective Services arranges financial management for clients • Some community agencies provide daily money management • Area agencies on aging can make referrals