California Elder Abuse Lawyer Blog

In its simplest form, financial elder abuse involves taking money or property from an elderly person with the intent to defraud them. It is a growing problem in California given the state's increasing senior population. The signs of financial elder abuse can be difficult to see. The following is a list of some of the signs associated with financial elder abuse. Though the presence of any of the signs is not absolute evidence of abuse, it should prompt further investigation.

• Elder is withdrawn.
• Elder is confused and tends to be more forgetful than usual.
• Elder seems depressed or angry.
• Senior appears more secretive than usual.
• Others keep the senior away from family members.
• Caregiver does not give the elder an opportunity to speak freely.
• There is unusual activity in the older person's bank accounts including large, unexplained withdrawals, frequent transfers between accounts, or ATM withdrawals.
• Bank statements and other financial reports no longer come to the elder's home;
• Signatures on the elder's financial documents do not match the elder's signature.
• The elder's important financial documents, such as checks, are signed even though the elder's physical condition prevents writing.
• The senior lacks appropriate clothing or personal hygiene items.
• A stranger suddenly appears and offers the elder financial advice.
• There are unpaid bills, eviction notices, or notices to discontinue utilities.
• A caregiver who expresses unusual interest in the amount of money being spent on the older person.

Financial elder abuse can come in many forms including telemarketing fraud, predatory lending, and estate planning scams. Telemarketing fraud is the fraudulent sale of products and services over the phone. According to the American Association of Retired Persons, more than half of all of those targeted by telemarketers are over the age of 50. It may be difficult for the elder on the other end of the call to tell whether the call is a fraud, but everyone should be cautious about those calls that demand immediate payment for services not yet rendered. To avoid being duped by telemarketers, ask the caller for the name and address of their employer. Ask them to send you some written material. Whatever you do, DO NOT pay for anything over the phone. When in doubt, just hang up. The longer the conversation continues, the more easily the caller can convince the elder to give in and buy something.

Elders are also susceptible to the strong-arm tactics of predatory lenders who convince elders to take out high-interest loans. The elder is then unable to pay back the loan and can lose the collateral for loan, which is usually the elder's home. Lenders target elders who may be in financial straits and offer these loans as the solution to their problems. In reality, the fine print and boilerplate terms in the loan agreement almost always include hidden fees and balloon payments.

Estate planning schemes are other ways of taking advantage of the elderly. Suspicious estate planning documents, such as "Powers of attorney" can be devastating to a senior's financial life. A person who obtains power of attorney over the affairs of an elder has the ability to withdraw unlimited sums of money from the elder's bank account and can sign important financial documents on the elder's behalf. Powers of attorney can be beneficial when the person appointed as attorney is in fact acting in the best interest of the elder, but when they are fraudulently obtained, they can wreak havoc on the elder's finances.

Continue reading "How to Recognize Financial Elder Abuse" »

It is estimated that nearly one in five Americans over age 65 become victims of financial elder abuse every year, costing them approximately $3 billion. Research also suggests that instances of financial elder abuse are severely underreported, with only about one in 25 cases actually making it to the authorities or news reporters. Several factors play a role in this underreporting, but often elders are too embarrassed to disclose when they have been victimized, while others lack the cognitive ability to recognize that the abuse is even taking place. Therefore, it is important for you to be able to recognize and prevent financial elder abuse of your loved ones.

A recently published article suggests 8 simple ways to prevent your loved one from being a victim of financial elder abuse.

1. Educate your loved ones. Talk to the seniors in your life regularly about potential problems and do not wait for them to reach out to you with concerns. Maintain a strong, trusting relationship and make sure to ease any potential embarrassment.

2. Go with an outsider. With nearly 80 percent of elder fraud cases attributed to close family members, it can be wise to choose a detached third-party to help manage your senior's financial holdings. A power-of-attorney (POA) gives a person legal authority to act on another person's behalf and is often a smart choice for handling a senior's finances. If your loved one chooses to assign a POA, make sure you are involved in the process and maintain strict limits on the types of transactions that may be accomplished. Assigning joint-POA's is also a good idea.

3. Register on the do-not-call list. Research suggests that women over 60 who live alone are extremely vulnerable targets for telemarketing scams. Although you cannot stop all calls, listing a phone number on the National Do Not Call Registry is a small protective step you and your loved one can take. Registration is free and easy. Also remember to remind your loved ones not to give out personal information over the phone.

4. Monitor investments. Visit the North American Securities Regulators Association before your loved one makes any investments or contacts a broker. A regulator from this website can verify that a chosen broker is properly licensed and can provide you with his or her important background information.

5. Don't fall for free lunches. Financial workshops offering "free lunches" to seniors are an ever-increasing way of luring seniors into a scam. It has been found that more than 10 percent of these events include fraudulent practices.

6. Monitor the mail. Assist your loved one in sifting through the mail and be on the lookout for bank or credit card statements bearing another's name or contact information. Be wary of unusual magazine subscriptions and always shred new credit card offers and bank statements.

7. Check credit reports. Ensure your senior is not a victim of identity theft or fraud by continuously monitoring their credit report. Free reports are available from the three major credit bureaus every 12 months.

8. Beware of isolation. Be a constant, loving presence in your loved one's life to prevent them from feeling lost, abandoned, or isolated. Those prone to take advantage of elders do so when the senior is most vulnerable. Involve your family and make sure that all maintain an active role in protecting your loved ones from financial elder abuse.

If you suspect a senior is being financially abused, report the situation to the proper authorities who can then make a decision about whether or not to investigate. In California, reports can be made to the local county Adult Protective Services Agency or to local law enforcement. Also, suspected elder abuse of any kind may reported to the National Center on Elder Abuse.

Continue reading "Tips to Recognizing and Preventing Financial Elder Abuse" »

California elder abuse attorneys are increasingly being called upon to litigate claims relating to financial elder abuse. Financial elder abuse law in California has changed significantly over the past several years. The law has changed over time to broaden the definition of financial elder abuse and to strengthen the legal system's position against those who set out to take advantage of the elderly.

One difficulty with financial elder abuse is that when most people hear the word "abuse" they immediately associate it with physical abuse. When there is no evidence that an elderly person is being physically abused, many people believe that the abuse is somehow less serious. That is far from the truth, and the fact is, financial elder abuse involves a violation of the senior's trust with the intent to cause harm. Such callous behavior should not be taken lightly.

Financial elder abuse is defined in Welfare and Institutions Code Section 15610.30. The code says: "Financial abuse of an elder or dependent adult occurs when a person or entity... takes, secrets, appropriates, obtains, or retains [or assists in doing any of these] real or personal property of an elder or dependent adult for a wrongful purpose or with intent to defraud or both."

This newest version of the law is designed to give the elderly protection from abuse irrespective of the elder's mental capacity. Lawmakers in California correctly recognized that the elderly are vulnerable targets for those who wish to take advantage of them regardless of their capacity to understand the implications of their financial decisions.

The problem with financial elder abuse claims is that because the statute in its current form is relatively new, there is not much case law available to interpret the language of the law. The lawsuits that have been brought do not usually reach the appeals court and therefore are not widely reported. Even more problematic is the fact that many elders are not even aware that they have been financially harmed and thus never pursue a claim against the perpetrator.

The California legislature, however, is in the process of tackling one aspect of this problem. A new bill introduced in the house will allow for a right of attachment in financial elder abuse claims, which should work to incentive attorneys to take such cases. Currently, one of the problems with an attorney taking financial elder abuse cases is whether they will ever be able to collect from the criminals. Allowing for attachment would provide a more promising way to recover money and encourage efforts to recoup assets that have been taken from the elderly.

Continue reading "California Law Addressing Financial Elder Abuse Continues to Evolve" »

Sadly, stories of seniors being scammed out of the money are increasingly common. According to a recent study by MetLife, incidents of senior financial fraud increased by 12% from 2008 to 2010, amounting to a whopping $2.9 billion in stolen dollars.

There are many reasons why seniors make such attractive targets for financial crime. Those over the age of 50 control over 70% of the nation's wealth, yet many may not realize the true value of their assets. As elders become more physically frail, they may not see or hear as well or think as clearly as they used to, leaving openings for unscrupulous people to take advantage of them. As a group, the elderly are also likely to suffer from disabilities that make them dependent on others for help. These "helpers" may have nearly unimpeded access to the assets of their victims, and often exert significant influence over the older person.

MSN recently discussed some of the most common scams targeting these vulnerable seniors. The list includes the following:

1. Grandparent scams. Scammers play on an old person's loneliness and call up pretending to be a grandchild in need of fast cash. The routine includes pleas for money for college or stories about needing bail money in a foreign country.

2. Free lunch investment seminars. These schemes involve selling bad investments to seniors for high commissions. The particular product could be anything: real estate, time-shares, rare coins, etc. Often times the perpetrators of these frauds have official sounding titles or certifications. They sound good, but in the end are meaningless and lull seniors into a false sense of security.

3. Medicare fraud. This routine involves people posing as Medicare representatives calling to ask for personal information from seniors. Some scams are so elaborate that they even construct mobile health clinics to draw in the elderly and steal their private information.

4. Bogus sweepstakes. This one has been going on for a long time and almost always includes a promise of big money in exchange for wiring some of your own to claim the prize. In reality, if you win a prize you will not be asked to front any money to get your hands on it.

5. Dialing for dollars. Seniors are especially vulnerable to telemarketing scams as the sheer number of them is so large. Fake charities or fake credit card calls are some of the most popular approaches. Calls often come in the early morning or late at night in an attempt to catch seniors off guard.

6. Unsolicited home improvement. In this scam a person goes door to door selling what they say are necessary repairs. When (and if) the work gets done, the senior finds that the bill is dramatically higher than the quoted price or that shoddy materials have been used.

7. Home loan scams. Loan modification scams are popular at the moment as crooks offer to help seniors struggling with mortgage payments to lower their payments, all for a small upfront fee. The thieves typically just take the money and run, never bothering to do any actual work.

8. Power of attorney scams. These scams are especially sad because they typically involve someone close to the senior using their relationship to extract legal authority to manage the elder's affairs. Rather than protect the senior, these people often use that power to drain the senior's bank accounts.

9. Knock-knock thefts. This is a low tech and still popular tactic of having one person knock on the door and distract a senior while their counterpart grabs money or valuables.

10. Sweetheart swindles. This scam involves a younger person preying on older, usually male, suitors all to establish trust and eventually gain access to financial information.

If you suspect a senior is being financially abused, report the situation to the proper authorities who can then make a decision about whether or not to investigate. In California, reports can be made to the local county Adult Protective Services Agency or to local law enforcement. The following state website contains more information and where and how to report suspected abuse.

Continue reading "Financial Elder Abuse Is On The Rise" »

The elderly are prime targets for financial scams. Persons over the age of 50 control over 70% of the nation's wealth. Yet senior citizens are more likely to have disabilities or impairments that make them vulnerable to manipulation and prevent them from taking action against their abusers. Some older people are unsophisticated about financial matters or unaware of how much their assets have appreciated. Others cannot help but follow a predictable pattern of receiving and cashing in their monthly checks, making it easy for predators to guess when they have money or need to go to the bank. Many times, the very family members and helpers they depend upon are the perpetrators who unduly influence and exploit them.

Financial abuse refers to the theft or embezzlement of an elder's money or property. It includes a wide range of conduct, from the immediate theft of money and property to the use of deception, coercion, or undue influence over time. Perpetrators may also reap financial gain by forging the elder's signature, forcing them to sign a deed, will, or power of attorney, placing charges on their credit cards without permission, or using any fraud, scam, or deceptive act to financially exploit the victim. Sadly, the perpetrator does not have to be in proximity with the victim; AARP estimates that Americans lose $40 billion each year to fraudulent sales pitches that promise a lottery win, prize win, travel package, or "amazing home loan." Over 56% of the victims targeted are aged 50 or older. Some widespread forms of financial elder abuse include:

• Identity theft
• Predatory lending
• Telemarketing fraud
• Estate planning scams
• Home improvement scams

Financial abuse is devastating for elders who already have a hard time providing for themselves. As such, it is important to recognize some of the most common signs of financial abuse:

• Unusual bank account activity
• Sudden withdrawals or transfer of assets
• Additional names on bank signature card
• Unexplained changes in spending patterns
• Forged signatures on checks and legal documents
• Unpaid bills, notices to discontinue services or evict

The California Welfare and Institutions Code defines financial elder abuse as the taking, secreting, or appropriating of an elder's real or personal property for wrongful use or with intent to defraud. The Financial Elder Abuse Reporting Act of 2005 (Act) requires the reporting of any fraudulent use of an elder's drafts, checks, or orders drawn upon any bank, credit union or savings association. Any person who suspects financial elder abuse should report it the local Long-Term Care Ombudsman, local law enforcement agency, or the Bureau of Medi-Cal Fraud and Elder Abuse. Pursuant to the Act, the police, sheriff's department, or district attorney investigating the abuse can then request detailed financial records to corroborate the report.

Continue reading "Recognizing and Reporting Financial Elder Abuse--California's Financial Elder Abuse Reporting Act " »