Financial ExploitationFor Court Officials

NYC Elder Abuse Training Project

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

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

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

Typical Perpetrator

• Unemployed relative• Child or grandchild• Financially dependent on victim• Substance abuser, gambler and/or

emotionally disturbed

Other Perpetrators

• Paid caregivers• Friends• Fiduciaries

Can Be Devastating

• More upsetting than theft by a stranger• Trust has been violated• May deny or minimize

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

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• Senior’s life savings may be withdrawn• To investigate, forensic accountant will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

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

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

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

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

Capacity

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

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

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

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

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

Factors that increase vulnerability

• Recent bereavement• Physical disability• Isolation• Lack of knowledge of one’s own finances• Cognitive impairment

Perpetrators

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

Actions to Gain Control

• Isolate victim• Convince victim no one else cares• Make victim dependent

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