Daniel Williams, Esq.
As people age, they are increasingly at
risk to develop cognitive impairments or suffer from dementia and Alzheimer’s. Recent
studies have estimated around 11% of Americans aged 65 or older have
Alzheimer’s. As those diseases progress, the person suffering from them loses
the ability to do daily tasks and to care for their financial needs.
When those persons begin to exhibit problematic
financial behavior, it may be a sign that they are in need of either someone to
take power of attorney or to have a guardianship and conservatorship in place
to allow someone else to look after those everyday needs.
While those processes are important and
necessary, there is also the possibility of exploitation as well. Since
Americans over the age of 50 control over 70% the nation’s wealth, they are a
highly-valued target for scammers. The common fear for persons suffering from dementia
and Alzheimer’s disease is that they are susceptible to phone scammers and home-visits
from strangers who use phony stories of tragedy and empty-promises to swindle
victims.
While these predators will continue to be
a cause of concern as the technology boom creates new opportunities for
exploitation, they are not the only ones we should worry about. There is
another set of individuals whose familiar face and established relationship
allow them to operate undetected.
This group, of course, is the family
members of the victims. In some instances, it is the person holding power of
attorney, or who has been appointed guardian and conservator who tries to take
advantage of their elderly, and disabled family member. According to the National Council on Aging, in
elder abuse cases with known perpetrators, 90% are family members.
The amount of abuse and exploitation done
by family members to an elderly or disabled person is substantial and is
terribly underreported. A conservative estimate places the total financial loss
due to theft/deceit enabled by a trusting relationship at $6.6 Billion per
year. If all abuse was uncovered, this amount would be significantly higher.
Many times, even when the abuse is
discovered, there is a lack of desire to use the court process, in all of its
forms, criminal, civil and probate, to try and recover the lost assets and to
enforce criminal sanctions for the conduct. It is estimated that for every one
case of elder abuse, neglect, or exploitation, about 5 more go unreported. The
simple fact is, there is no reason that anyone, including a family member, can
simply be left to take care of another person without being watched.
There are pros and cons to both Powers of
Attorney and guardianships and conservatorships. However, it is important that more than one
person keep an eye on how the persons in those capacities are handling mom and
dad’s money, once they are unable to do it for themselves any longer.
There are criminal and civil remedies that
can be implemented to try and recover and punish persons who exploit the
elderly. As a former Wayne County
Assistant Prosecutor, I was assigned to the Elder Abuse Unit and saw more than
my share of financial exploitation cases.
Most of the Defendants that I dealt with in that arena were family
members, or persons that the victim trusted.
While there are criminal charges that can be levied against the
offenders, there are also civil remedies as well, which provide an avenue by
which the aggrieved elder can be made whole and obtain a money judgment to
hopefully have their finances restored.
If you suspect that a family member has
been the victim of elder abuse or financial exploitation, the attorneys at
Fausone Bohn, LLP have the experience and knowledge to ensure that justice can
be obtained on your behalf.
See more on this story here: http://www.detroitnews.com/story/business/personal-finance/2015/07/05/dementia-puts-seniors-risk-financial-abuse/29744885/
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