Guardianship - Conservatorship Abuse - Elder Financial Fraud Documentary Guardians Inc.

"Conservatorship is a legal concept in the United States. A guardian or a protector is appointed by a judge to manage the financial affairs and/or daily life of another due to physical or mental limitations, or old age. A person under conservatorship is a "conservatee," a term that can refer to an adult. A person under guardianship is a "ward," a term that can also refer to a minor child. Conservatorship may also apply to corporations and organizations. 

"The conservator may be only of the "estate" (financial affairs), but may be also of the "person," wherein the conservator takes charge of overseeing the daily activities, such as health care or living arrangements of the conservatee. A conservator of the person is more typically called a legal guardian." Wikipedia:  https://en.wikipedia.org/wiki/Conserv... 

Guardianship: "A guardianship for an incapacitated senior will typically arise where someone determines that a senior has become unable to care for their own person and/or property. In some cases, there may be a belief that the senior is being financially exploited or about to be exploited. In other cases, the person may be unable to care for him or herself and is not able to properly engage in the activities of daily living without assistance. There will typically be a precipitating incident that causes a professional, family member, health care worker or clergyman to initiate guardianship proceedings. 

 "In most states, the process will start with a determination whether the alleged incapacitated person is actually incapacitated. There will often be an evidentiary hearing. Only if a finding of incapacity is made will the next step take place: whether a guardian is necessary and to what extent (e.g. a guardian may be needed for the person's finances but not for the person) and, if so, who the guardian should be. 

The determination of whether a guardianship is necessary may consider a number of factors, including whether there is a lesser restrictive alternative, such as the use of an already existing power of attorney and health care proxy. In some cases, a guardianship dispute can become quite contentious, and can result in litigation between a parent and adult children or between different siblings against each other in what is essentially a pre-probate dispute over a parent's wealth. Stopping the guardianship is often pursued in such cases as well." 

Abuses 

 "A report published in 2010 by the U.S. Government Accountability Office looked at 20 selected closed cases in which guardians stole or otherwise improperly obtained assets from clients. In 6 of these 20 cases, the courts failed to adequately screen guardians ahead of time and appointed individuals with criminal convictions or significant financial problems, and in 12 of 20 cases, the courts failed to oversee guardians once they had been appointed. 

"In October 2017, The New Yorker published an article looking at the situation in Nevada in which professional guardians sometimes have a number of clients, and argued toward the conclusion that in a number of cases the courts did not properly oversee these arrangements. In 2018 the investigative documentary 'The Guardians' was published, alleging 'legal kidnapping of elderly people' in Nevada by private guardianship businesses with no familiar relations, seeking to economically profit from seniors' savings." Wikipedia: https://en.wikipedia.org/wiki/Legal_g... 

Resources: 

~ The Guardians documentary: http://www.guardiansdocumentary.com ~ Guardians Inc documentary: Netflix Dirty Money docuseries Season 2, Episode 5. https://www.netflix.com/title/80118100

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Guardianship - Conservatorship Abuse - Elder Financial Fraud Documentary Guardians Inc.

Elder Financial Fraud Reaches $1.7 BILLION

In February 2019, McKnights’s Senior Living reported, citing a report just released from the Consumer Financial Protection Bureau (CFPB) that financial elder fraud reports had quadrupled since only 2013, reaching $1.7 billion in actual losses or attempted thefts, and those figures were for the year 2017.

The CFPB report is based on suspicious activity reports (SARs) filed with the federal government by banks, brokerage firms, insurance companies, and other financial institutions. It is not only believed that the trend is continuing to rise, but that these reports still only represent a fraction of the elderly financial exploitation.

Although the average loss was just over $34,000, approximately 7% of the reported victims lost over $100,000 each. One-third of the victims involved people over age 80 years old. The largest losses reported involved suspects that were people that the victim already knew either personally or professionally.

The CFPB has published a number of materials to help protect elderly persons from financial abuse including numerous reports and materials, even a financial education placement to remind older adults about financial issues. The CFPB website is a resource for these materials. In addition, you can report elder financial abuse to local law enforcement authorities, as well as federal resources such as the Federal Trade Commission (www.ftc.gov/complaint) or to the Senate Special Committee on Aging at www.aging.senate.gov/fraud-hotline.

According to the National Adult Protective Services Association, only approximately 1 out of every 44 cases of financial abuse even gets reported. Policy makers and regulators are trying to ramp up the focus on financial elder abuse. New legislative efforts at the state and federal level, new proposals by state and federal securities regulators are aimed at helping to prevent financial exploitation of seniors. Insurance companies and broker-dealer firms all seem to acknowledge and agree with the goal of protecting seniors from abusive sales practices when it comes to financial services products. However, the same firms also lobby to prevent real change such as a fiduciary standard, and also voice concern that any material change from the status quo in terms of new regulations will add costs to their business.

The Investment Fraud Lawyers and Annuity Fraud Lawyers at Haselkorn & Thibaut, P.A. can handle these cases nationwide. Please call them today for a free consultation 1-800-856-3352 or visit us at www.investmentfraudlawyers.com. With over 40 years of combined experience, these former bank and broker-dealer attorneys are available now to for you, the investor.

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Elder Financial Fraud Reaches $1.7 BILLION

Financial elder fraud reports quadruple; amount reaches $1.7 billion

The number of reports of financial fraud against older adults has quadrupled since 2013, with 63,500 filed reports describing more than $1.7 billion in actual losses or attempted thefts in 2017, according to a report released Wednesday by the federal Consumer Financial Protection Bureau.

The report’s statistics are based on suspicious activity reports filed with the federal government by banks, credit unions, casinos and other financial services providers. These reports, however, “likely represent a tiny fraction of elderly financial exploitation,” the CFPB said.

The findings, the bureau said, point to “the need for strong and diverse interventions by financial institutions, law enforcement, and social services, as well as the involvement of policymakers.”

Key findings of the report:

• The average loss in 2017 was $34,200, although 7% of victims lost more than $100,000 each.
• One-third of those who lost money were aged 80 or more years, losing an average of $39,200.
• 52% of the reports involved money transfers, with an average loss of $32,800.
• 44% of the reports involved checking or savings accounts, the type of financial product with the highest average monetary loss: $48,300.
• Losses were greater when the older adult knew the suspect, averaging $50,000 compared with $17,000 when the victim did not know the alleged perpetrator.
• In more than two-thirds of cases, financial institutions do not appear to be reporting elder financial exploitation to law enforcement or adult protective services, according to the report. “This is a missed opportunity to increase investigation and prosecution, and to make it more likely that victims will receive appropriate services,” the authors wrote.

The CFPB has published “Protecting residents from financial exploitation: A manual for assisted living and nursing facilities” as well as financial education placemats and other materials to educate professional caregivers, older adults and their families about financial issues; see the links in the left column of the placemat page and other information on the CFPB website.

Suspected elder financial abuse may be reported to the Federal Trade Commission at www.ftc.gov/complaint or 877-FTC-HELP and to the Senate Special Committee on Aging at 855-303-9470 or www.aging.senate.gov/fraud-hotline.

 
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Financial elder fraud reports quadruple; amount reaches $1.7 billion

What to Do If Your Parent Gets Scammed

The U.S. Department of Justice recently conducted the largest coordinated sweep of elder financial fraud cases in history, charging more than 200 people with stealing more than half a billion dollars from over a million Americans. But what should you do if you think your mother or father has been victimized by another scammer?

As the U.S. Department of Homeland Security says about suspicious terrorism activities: If you see something, say something.

At the American Society on Aging’s 2018 Aging in America conference in San Francisco, a panel of elder fraud experts said it’s critically important for “bystanders” — often family members — to intervene if they suspect elder financial abuse is happening. But people rarely do.

Citing one study, panelist Liz Loewy, general counsel and senior vice president of the elder fraud protection service Eversafe, said: “Forty-three of 44 cases of elder financial abuse are not reported.”

Even if you only have a strong hunch fraud has been committed, said panelist and elder justice consultant Judith Kozlowski: “If something is bothering you, trust your gut.”

Here are the top three scams targeting older Americans, based on calls received by the Fraud Hotline of the U.S. Senate Special Committee on Aging, and what to do if your parent fell for one:

Internal Revenue Service (IRS) Impersonation Scams

Here, the crook says the person owes back taxes and penalties, threatening things like an arrest or foreclosure unless payment is made. More than 12,300 Americans have lost over $64.9 million from the scam.

What to do: Report the call by using the IRS Impersonation Scam form on the website of the United States Treasury. Also, report it to the Federal Trade Commission (FTC) on that agency’s website; add IRS Telephone Scam in the notes.

Robocalls/Unsolicited Phone Calls

Your parent may have signed up for the Do Not Call registry, but that doesn’t mean he or she won’t receive robocalls or unsolicited calls. New technology has helped scammers get around the registry’s rules. Sometimes, the crooks are pitching investment scams. According to a 2017 AARP survey, over half of U.S. financial fraud victims are over 70.

What to do: Help your parent sign up for Nomorobo, a free service Loewy recommends that blocks certain robocalls. Nomorobo reroutes incoming calls to check them against a list of spammers. If the crook is on that list, the call will disconnect after one ring.

Sweepstakes/Jamaican Lottery Scams

Here, your parent mistakenly believed a caller or letter saying he or she won a lottery or was entered into a contest. So your mother or father paid a fee to collect the money or to improve the odds of winning. The phone scams often come from what looks like an 876 area code, Jamaica’s. What really happens: the “winner” just gets more calls from scammers demanding more money.

What to do: Report the scam to the FTC on the agency’s website or by calling 888-382-1222 as well as the state attorney general. If the prize offer came in the mail, report that to the U.S. Postal Inspection Service on its website.

Some Overall Guidance About Financial Fraud

To help spot and prevent financial fraud, read the materials in the financial exploitation part of the federal government’s Elder Justice Initiative site. And if your father or mother gets a suspicious call, call the U.S. Senate Special Committee on Aging’s Fraud Hotline (855-303-9470) and notify the Federal Bureau of Investigation (FBI).

“The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI,” said the agency’s acting deputy director David Bowdich, when the Justice Department announced its crackdown.

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What to Do If Your Parent Gets Scammed

Column: Watchdogs step up U.S. fight against elder financial fraud

Thieves follow the money, and wealth accumulates as we age. But the aging brain is not always well-suited to financial decision-making - and that creates opportunity for financial fraud and abuse targeting the elderly.

“It’s a perfect storm,” said Elizabeth Loewy, general counsel for Eversafe, a technology firm that monitors customers’ bank and investment accounts, credit cards and credit reports for potential fraud and abuse.

Loewy has been in the frontlines of the fight against elder financial fraud and abuse for a long time. She pioneered prosecution of these cases during 29 years as an assistant district attorney in the Manhattan District Attorney's Office.

“When the office got started prosecuting elder abuse, we thought most of the cases would be physical abuse or domestic violence, but we quickly saw that it usually involved some kind of fraud or larceny,” she said.

Today, there is broad recognition that seniors are vulnerable to financial fraud that can devastate household balance sheets. Almost one in five Americans over the age of 65 has been taken advantage of through inappropriate investments, unreasonably high fees for financial services, or fraud, according to a study last year by the Investor Protection Trust, a nonprofit consumer advocacy group.

A broad range of professionals who work with the elderly are stepping up their anti-abuse efforts.

The North American Securities Administrators Association approved a rule last year requiring financial advisers to report suspected financial abuses to states’ securities regulators and adult protective services departments. The U.S. Securities and Exchange Commission recently approved new Financial Industry Regulatory Authority rules requiring its broker-dealer members to add a trusted backup contact person for all accounts and to allow members to put temporary holds on fund disbursements when financial exploitation is suspected. The new rule takes effect in February 2018.   And the Investor Protection Trust is training physicians and attorneys to be on the lookout for warning signs of financial vulnerability.

“There is a good deal of progress, and it’s about time” said Loewy.

Eversafe is part of a growing tech startup sector that aims to guard against financial fraud targeting seniors using software that monitors accounts for irregular activity. The category also includes True Link, which also offers a robo-advisory service focused on management of retirement income.

More than half of the U.S. population over age 85 suffers from some level of cognitive impairment, according to research by the Center for Retirement Research at Boston College (CRR). Within that group, 27 percent suffer from dementia, and another 37 percent suffer some level of mild cognitive impairment.

Not all of these seniors are vulnerable to financial abuse, said Anek Belbase, research fellow at CRR. “People with mild impairment who have spouses or family members providing support can do just fine. They can still express their needs and priorities well and can avoid problems with support from someone they can trust.”

Dementia sufferers are at greater risk - and so are spouses who start managing household finances at a late age. “If a spouse who has been managing things dies first, the surviving spouse needs to learn to do this at an older age, possibly at a time when there is some cognitive impairment, and the ability to learn new things has probably declined,” Belbase said. “That’s a person who is susceptible to making financial mistakes and becoming a victim of fraud.”

Compounding the problems, financial judgment is one of the first areas of cognitive ability to decline - and numerous studies conclude that people suffering cognitive decline tend to think they are more capable than they really are. And family members often turn out to be perpetrators of fraud, Loewy notes.

TAKING DEFENSIVE STEPS

How to guard against becoming a victim? Experts recommend getting an early start by making plans to protect yourself in your fifties or sixties. Procrastination is your worst enemy, since the onset and progress of cognitive decline is difficult to predict.

Start with a financial checkup that includes a review of estate-related legal documents. Have a clear succession plan - a trusted family member to manage your affairs in the event you are unable to do so.

Also consider simplifying your financial affairs and consolidating accounts wherever possible, so that a trusted financial adviser, attorney or family member can easily keep tabs on things for you if the need arises. The risk of cognitive decline also argues for shifting to less active investments and automation of retirement income drawdowns.

And - if you work with a financial adviser, make it a fiduciary. Avoid any financial adviser who is not a fiduciary - a legal definition that requires an adviser to put the best interest of a client ahead of all else. If in doubt, simply ask anyone you are considering hiring to sign the Fiduciary Oath - a simple, legally enforceable contract created by the Committee for the Fiduciary Standard.

The adviser simply promises to put the client’s interest first, exercise skill, care and diligence, to not mislead you, and to avoid conflicts of interest. You can download the oath here (bit.ly/1PtGy4w).

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Column: Watchdogs step up U.S. fight against elder financial fraud