You are no doubt familiar with the many telemarketing scandals that have become pervasive over the past decade. Fraud campaigns that prey on the elderly and isolated. More prevalent, and less discussed, are the fraudulent actions of those closest to the elderly. Friends, and even family members, perhaps acting as caregivers for those with diminishing mental capacity, taking advantage of the aging. A son who convinces his father to cut out the rest of his siblings from inheritance with unfounded accusations of their financial troubles. A grandchild who signs legal documents transferring assets to himself without the account owner’s knowledge. A sibling who cashes government subside checks and spends the funds on her own needs without the recipient’s knowledge or permission.
In other cases, financial elder abuse can be even more insidious. Professional caregivers coercing their patients to make changes to their estate plans under veiled threats. Successor Trustees, agents for power of attorneys, conservators, all people with legal fiduciary duties, using their privileged access to enrich themselves.
Preventing Elder Abuse
The best way to prevent elder abuse before it happens is to maintain contact with your friend or family member as they age and become more isolated. The more isolated they become, they more likely they are to fall prey to a financial elder abuse. If your concerns about a family member continued ability to manage their financial affairs, consider calling family members, friends, and caregivers together to discuss your concerns in an open manner. Come up with an accountability plan that provides those with concerns with access to relevant information.
Warning Signs of Elder Abuse
If you have a loved one you suspect is the victim of financial elder abuse, consider some of the common warning signs: missing checks; excessive atm withdrawals or credit card use; lack of basic care; missing property; missing money from accounts; a change in the elder person’s demeanor; a sudden unwillingness to discuss finances, and caregivers or family members providing care restricting access.
If you notice any of these warning signs, or other strange behavior, you may consider taking the following steps:
>> Contact Adult Protective Services or to local law enforcement. For a state-by-state list of where to report, go to the U.S. Administration on Aging’s National Center on Elder Abuse website ncea.aoa.gov, or call them directly at 1-800-677-1116.
>> Contact a probate attorney to assist you in further investigation.
Penalties For Financial Elder Abuse
Elder abuse carried both criminal and civil penalties. Criminal offenses of theft, embezzlement, or financial fraud can result in jail time and monetary penalties. Most frequently, the parties involved take their case to civil court and seek restitution and punitive damages. While going to one court does not foreclose the other, many people just want to see the fund returned. The civil penalties can also include interest, gains, treble damages (3x the amount awarded), punitive damages, and attorney’s fees and costs. For example, if a person was found to have stolen $50,000 and invested it, they could be forced to repay the $50,000 plus any interest, plus any accrued earnings or profits. Presume that award totaled $60,000. The court might also find for treble damages and increase the award to $180,000, and further award attorney’s fees and costs.
Takeaway
If you are aware of someone who may be the victim of financial elder abuse, or if you have been wrongly accused, Contact CASHMAN LAW today for a free consultation to see how we might help you make things right.
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