Age, Wisdom, Deception: The Signs of Elder Care Fraud

August 2008

IN THIS ISSUE

— Broken Trust: The Problem of Elder Care Financial Fraud
— The ‘Red Flags’ of Elder Care Financial Fraud
— In the next issue

GREETINGS!

Welcome to the August 2008 edition of our newsletter! As the dog days of summer creep upon us, we’ll look at an oft-overlooked and vulnerable segment of the population — senior citizens. Routinely seen as ideal victims for various fraudulent schemes, we’ll look at some of these schemes and how caregivers or relatives can spot ‘red flags’ before it’s too late.

BROKEN TRUST: THE PROBLEM OF ELDER CARE FINANCIAL FRAUD

Entering your “golden years” should not mean that someone in your life should see you as a golden goose, ready to be taken advantage of for their financial gain. Yet for many seniors, the time between retirement and, sadly, even up to the funeral can be a time fraught with fraud and deception.

Statistics about elder care fraud are incomplete at best; given the pride people feel in accumulating a lifetime of assets, admitting that you’ve been had is not an easy task.

The “pride factor” which keeps victims from aggressively pursuing scammers has often allowed unscrupulous caregivers, relatives and others on whom older people depend a means to operate without fear of retribution. Many states, however, have set up various programs to help raise awareness of his issue and alert senior citizens that they can do something about it. From Montana to Maine, various non-profit groups have set up task forces to inform and advise elderly victims, often assisting in preparation of documentation for criminal referrals to county prosecutors.

THE ‘RED FLAGS’ OF ELDER CARE FINANCIAL FRAUD

How do perpetrators commit financial fraud against older persons? The simplest answer is by earning someone’s trust, then betraying that trust to rob the older person of dignity as well as property and cash. Concerned relatives, friends and attorneys should be on the lookout for the following signs:
• Power of attorney filings. If a caregiver or formerly alienated relative suddenly appears claiming power of attorney over the would-be victim’s affairs, even if the older person has consented, that person should be vetted to determine their own financial need and motivations.
• Excessive withdrawals. Review the bank statements of an older person who needs care on a regular basis — any discrepancies may merit further research. If a normally frugal retiree is suddenly “spending” hundreds or thousands of dollars more than in the past, this may be an indicator of fraud.
• Contact with caregiving agencies. If an older person is in a nursing home, and those concerned about him are made aware that several payments have not been made on his behalf, this may indicate that those entrusted with tending to his financial affairs have other plans for the funds. Such groups are likely to know what visitors an older person has had while in their care as well.
Additionally, government officials with the Social Security Administration may be able to help if there is a suspicion that an older person’s checks have been diverted from their intended recipient. Other schemes may include over-charging of rent or for services, in which case a check of litigation (and with the Better Business Bureau) may help identify companies that have used these practices in the past.

The process of entering old age is a delicate one — after a lifetime caring for yourself and your loved ones, the last thing you’re ready to do is to cede authority of your financial affairs over to a person or company. Caution and vigilance, both by older persons and those who are genuinely concerned for their well-being, can be sufficient to prevent any victimization, but only if the right steps are taken.

IN THE NEXT ISSUE

In the September issue, we’ll examine the nuances of properly interpreting the myriad types of civil litigation when looking into a subject’s background.