$ FINANCIAL CRIMES $

for Police Detectives

NYC Elder Abuse Training Project

Financial exploitation

Illegal or improper use of the resources of an older individual for personal benefit, profit or gain

Misuse of a Power Of Attorney

Financial exploitation includes

“fraud, false pretenses, embezzlement, conspiracy, forgery, falsifying records, coerced property transfers or denial of access to assets.” NYS SSL§473.6

Signs in the Victim’s environment

Deviations in financial habits Numerous unpaid bills Checks made to cash Disparity between lifestyle and assets Personal belongings missing Unprecedented transfer of assets Elder unaware of monthly income

Signs in the Caregiver/Abuser

Makes all banking transactions Makes all investment decisions Receives expensive gifts from senior Asks only financial questions Refuses to spend on elder’s care Misuses Power of Attorney

Exploiter is often:

Unemployed relative (e.g., child, grandchild)

Dependent on elderly victim Alcohol or drug-addicted and/or

emotionally disturbed Or paid caregiver, friend, fiduciary

Emotional and physical abuse

Used to intimidate and coerce victim

Trust factor

Exploitation by trusted person more upsetting than theft/fraud by stranger

Misdemeanor charges (NYS)

Petit Larceny Forgery (and related charges) Fraudulently Obtaining a Signature Unlawful Use of a Credit Card

Felony charges (NYS)

Burglary Forgery (and related charges) Grand Larceny Grand Larceny by Extortion Robbery Scheme to Defraud

Concomitant offenses (NYS) Violations: Harassment, Trespass Misdemeanors: Assault 3°, Criminal

Contempt, Coercion 2°, Jostling, Menacing, Stalking, Endangering the Welfare of and Incompetent or Physically Disabled Person, Intimidation of/Tampering with a Witness

Felonies: Assault 1° and 2°, Coercion 1°,Endangering the Welfare of a Vulnerable Elderly Person 1° and 2°, Kidnapping, Unlawful Imprisonment

Types of Financial Exploitation

Telemarketing fraud, identity theft, living will scams, lottery scams, home-improvement frauds Usually perpetrated by strangers Not covered in detail here “Trust” crimes covered in detail below

Types of exploitation (continued)

Changes in patterns of spending and bank withdrawals Withdrawals and gifts can be legitimate

Money missing from joint accounts Did senior have capacity to sign?

Types of exploitation (continued)

Forgery of check or credit card signatures

Misuse of ATM or debit cards Fraudulent wills and property

transfers Theft of money or property by home

health aide

Types of exploitation (continued)

Theft of money by attorneys, brokers, court-appointed guardians, Rep Payees

Misuse of a Power of Attorney Improperly obtained Improperly used

Powers of Attorney Only covers designated financial

transactions, not healthcare decisions or nursing home placement

Forms sold in stores multi-page; exploiter can substitute pages indicating broader powers than victim agreed to

Not valid if coerced or signer lacked capacity

Capacity

Capacity = ability to perform a task Mental capacity focuses on mental

processes (e.g., remembering, reasoning, understanding consequences)

Decisional capacity = ability to make an informed decision

Capacity (continued)

Testamentary capacity relates to wills Capacity to sign contracts includes

understanding consequences For consent, individual must

Understand transaction Have mental capacity to contract Act voluntarily, free of threats/force

Undue influence

“the substitution of one person’s will for the true desires of another”

Used as means to exploit Devastating to victim

Material loss Personal loss of power

Undue influence (continued)

Perpetrators may isolate victim May convince victim no one else

cares for them

Can be asserted in court to support exploitation charges

Financial management

Some self-neglecting older adults need help with finances

APS offers “financial management” Community agencies offer “daily

money management” Contact area agency on aging for

referral source

Structured interview

Difficult to get facts you need for case if older adults become unfocused and confused

Solution: Use predetermined questions to keep interview focused Be sure they do not conflict with

department protocols

Concluding remarks

Financial exploitation fastest growing form of elder abuse

Often leads to early death Perpetrators tend to leave trail of

evidence; “Follow the money” Team with other investigators and

forensic accountants