article-elder-abuse-neglect-exploitation-2

Elder Abuse, Neglect and Exploitation

(Continued)

By Donald D. Vanarelli, Esq.

Certified Elder Law Attorney, by the National Elder Law Foundation; Accredited by the American Bar Association

V. Financial Exploitation of the Elderly

It has been estimated that people age 50 and above hold approximately 70% of the nation’s wealth.¹⁰Given the country’s aging population, financial exploitation of the elderly is quickly becoming “one of the greatest law enforcement challenges and concerns of our time.”¹¹ In the year 2000, cases of financial exploitation accounted for 10.5% of the total number of reports investigated and substantiated by Adult Protective Services.¹² Such exploitation is particularly devastating to older individuals, who are generally on fixed incomes and unable to recoup their lost life savings.¹³

The perpetrator of the financial abuse is most often the victim’s adult child(ren), accounting for more than 60% of the perpetrators.¹⁴ The victim’s “other relatives” account for 9.7% of the abuse; grandchild(ren) account for 9.2% of the abuse; “friends” and neighbors account for 8.7% of the abuse.¹⁵

Financial exploitation is generally defined as the misuse of another person’s funds or property.¹⁶Examples are plentiful and include:

Misuse of authority under a power of attorney or as a guardian or conservator;
Misuse of a bank account;
Use of undue influence, fraud or duress to gain control over property;
Transfer of real estate or other property for less than reasonable compensation;
Predatory lending, telemarketing fraud, mail fraud, sweepstakes fraud;
Excessive charge for providing goods or services; and
Using the elder’s property without permission.¹⁷

The Problem of Underreporting

Elder victims of financial abuse frequently are unwilling or unable to report that they have been or are being exploited. This may be so for a variety of reasons:

A disability may preclude the victim from even being aware that the exploitation has occurred;

The victim may fear that he/she will not be believed, or that he/she will be labeled a “victim”;
The victim may fear retaliation;
The victim may be ashamed to admit that he/she is being abused by a family member;
The victim may rely upon the perpetrator for love, companionship, care, or shelter;
The victim may fear that reporting the exploitation will lead to the loss of independence (for example, through the appointment of a guardian or the placement in a long-term care facility).¹⁸

Victim Profiles/Risk Factors:

Females are reportedly more vulnerable than males to financial exploitation.¹⁹ In many cases, victims of financial exploitation are also victims of physical abuse or neglect.²⁰

The likelihood of becoming a victim of financial abuse increases with age. According to one study, nearly half of the victims are age 80 or older; nearly 30% are between the age of 75 and 79.²¹

Interestingly, the likelihood of becoming a victim of financial abuse does not increase with income level. An estimated 46% of victims studied had incomes between $5,000 and $9,999; nearly 30% had incomes between 10,000 and $14,999; and 22% had incomes of $15,000 or more.²²

Any person over the age of 75 is considered to be “at risk” of financial exploitation. However, the likelihood of becoming a victim of financial exploitation increases if the elder is:

recently widowed²³
naïve or trusting and open with strangers
physically dependent on a caregiver
declining in physical or mental health
severely physically disabled
living alone (particularly in own home)
without close friends or relatives willing or able to assist
withdrawn, confused, or depressed
lacking knowledge of own finances or lacking reputable assistance with financial matters
providing financial support for their caregiver²⁴

Indicators of Possible Financial Exploitation:

The following examples may be indicators that financial exploitation is occurring or has occurred:

Inappropriate persons banking for the elder
New joint bank accounts, or additional names on bank signature card of the elder
Bank activity that is inconsistent with the elder’s abilities (such as use of automated teller machine (ATM) by bedridden elder)
Unexplained large bank withdrawals or transfers
Bank statements being forwarded to address other than the elder’s residence
Suspicious signatures on estate documents or financial papers
Notices of unpaid rent/utilities, etc.
Sudden changes to elder’s estate plan (will, POAs, etc.)
Preparation of a power of attorney or will for a confused or incapacitated person
Sudden isolation/estrangement between elder and elder’s family/friends
Elder shows signs of hoarding (such as carrying belongings in bags with him/her)
Sudden change in elder’s attorney, stockbroker, physician or other professional
Appearance of “new best friends” or previously uninvolved relatives
Elder’s personal property is missing from the home
Elder appears reluctant to discuss matters alone, or third party “speaks for” the elder
Elder’s caregiver being financially dependent on the elder
Caregiver or third party exhibits hostility toward visitors
Absence of documentation, or implausible explanations provided by the elder or caregiver, regarding financial arrangements.
Level of care being provided to the elder is not commensurate with size of elder’s estate
Caregiver or third party exhibits excessive interest in financial arrangements and expenses of elder
Elder’s own report of financial exploitation²⁵

VI. Where to Report Suspected Elder Abuse, Neglect or Exploitation²⁶

If you suspect that an elder may be the victim of abuse, there are a number of places you can report your concerns, including the following:

Adult Protective Services
Local police or county prosecutor
Area Agency on Aging (county government section of phone book)
New Jersey Attorney General (609)292-4925
Eldercare Locator (nationwide referral service) (800)677-1116
National Center on Elder Abuse (202)898-2586
National Domestic Violence Hotline (800) 799-SAFE

¹ American Psychological Association website 2003, Aging Issues: Elder Abuse and Neglect: In Search of Solutions.
² Gillin, E., Financial Abuse of the Elderly, TheStreet.com 5/22/02.
³ The Newark Star Ledger, May 14, 2002.
⁴ Second World Assembly on Ageing, April 8-12, 2002, Press Kit.
⁵ The Newark Star Ledger, June 21, 1990.
⁶ Senator Announces Legislative Proposal to Combat Elder Abuse, National Long Term Care Ombudsman Resource Center 2002.
⁷ Id.
⁸ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
⁹ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
¹⁰ National Committee for the Prevention of Elder Abuse 2002, Schemers, Scammers and Sweetheart Deals: Financial Predators and the Elderly, Chairman’s Opening Statement.
¹¹ Wolf, Rosalie, Elder Abuse and Neglect: Prosecution and Prevention, American Society on Aging.
¹² Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
¹³ Id.
¹⁴ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
¹⁵ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
¹⁶ Financial Exploitation: Family Self-Help Guide, AARP Legal Services Network, New Jersey Edition.
¹⁷ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging; Financial Abuse, National Committee for the Prevention of Elder Abuse.
¹⁸ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging; Fraud & Abuse: Senate Hearing on Financial Exploitation of Elders, ElderWeb.com Newsletter, March 29, 2000; Cohen, R., Violence Against the Elderly Found On the Increase Across America Congressional Committee Reports Abuse, Thefts Plaguing Seniors, Newark Star-Ledger May 1, 1990. ¹⁹ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
²⁰ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
²¹ Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
²² Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
²³ In addition to the elder being more vulnerable as a result of his bereavement, exploiters may read obituaries to target widows. Undue Influence and Financial Exploitation, Matrix AdvoCare Network, Vol. 14, No. 2.
²⁴ Financial Exploitation: Family Self-Help Guide, AARP Legal Services Network, New Jersey Edition; Undue Influence and Financial Exploitation, Matrix AdvoCare Network, Vol. 14, No. 2.
²⁵ The Basics: What is Elder Abuse?, National Center for Elder Abuse, elderabusecenter.org.; Financial Abuse, National Committee for the Prevention of Elder Abuse; AARP Family Self-Help Guide (Colorado): Financial Exploitation, http.//www.povertylaw.org/legalresearch/hotline/co/exploitation co.htm, and National Center on Elder Abuse, reprinted in Special Report: Combating & Prosecuting Financial Exploitation, National Center on Elder Abuse Newsletter, Vol. 5, No. 7, March 2003; Undue Influence and Financial Exploitation, Matrix AdvoCare Network, Vol. 14, No. 2; Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, ABA Commission on Law and Aging; Wolf, Rosalie, Elder Abuse and Neglect: Prosecution and Prevention, American Society on Aging.
²⁶ Financial Exploitation: Family Self-Help Guide, AARP Legal Services Network, New Jersey Edition; The Basics: What is Elder Abuse?, National Center for Elder Abuse, elderabusecenter.org.