Local exploitation case sheds light on rise in elderly financial abuse

By Kaylee Dusang

Reports of elder abuse, neglect, and financial exploitation have recently been on the rise in Texas. Earlier this year, the Texas Department of Family and Protective Services (DFPS) reported that there were more than 50,000 confirmed cases in 2022 alone.

Alisa Powell and Bobbie Ferrell’s story of financial exploitation hits close to home. Powell contacted Spiderman Pest Control when she believed her 89-year-old mom, Ferrell, was experiencing a small rodent infestation.

Powell first noticed the sign advertised in her mom’s neighborhood. When Powell called, they agreed to do a free estimate to determine if there were rodents in Ferrell’s house. Powell, who was at work while the house was being inspected, asked the pest control service to call her with the estimate.  

“I was waiting on my phone to ring for the free estimate and for the opinion of what we had going on here,” Powell said. “Well, my phone never rang.”

When Spiderman Pest Control arrived at Ferrell’s house, they asked her to write a check for $1,895 before proceeding to spray the house for insects. Powell said the check was asked to be written directly to David Bullard, who is believed to be the owner of Spiderman Pest Control.

According to court documents, the service should have cost between $200-$300. 
“If something doesn't sound right about a service or price, please stop and call your family or a friend you can trust to give you advice,” Ferrell said in an email. “Never act on something that just doesn't feel right.”

Although Powell asked for the money back, she said the check had already been cashed. Powell said Bullard proceeded to tell her that the house was overrun with rats and that it would cost more money. 

“I feel completely cheated and I feel horrible that my mother has lost $1,895,” Powell said.

According to the DFPS, financial exploitation of an elderly person is the illegal or misuse of a person’s money or property for personal or financial benefit.

Ferrell’s case was not alone. There were three more confirmed cases in Gatesville that were connected to the pest control business. One included an 87-year-old who was charged $3,290.80 for a flea extermination, a service that normally costs around $300. 

Bullard was charged with four counts of exploitation of an elderly person. Bullard was arrested in July and released on bond after each arrest.

Bullard appeared to target older adults between the ages of 70 and 90 years old, said Cody Lee, operations commander of Gatesville Police Department.

“To me, they grew up in a time when somebody’s word actually meant something, and you took their word as it was,” Lee said.

As of Wednesday, Spiderman Pest Control’s website is live and there are still signs advertising the business around the Gatesville area. Lee said in an email that he does not know whether the business is still active.

“If they show up to offer a service, even if you call, do not let them do anything and don’t pay them anything until you understand what their fees and services are,” Powell said.

People can report suspected financial exploitation, abuse, or neglect of older adults to DFPS’ Texas Abuse Hotline at (800) 252-5400.

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Local exploitation case sheds light on rise in elderly financial abuse

WSJ: Elderly Financial Abuse on the Rise

Financial abuse of the elderly is an epidemic sweeping the country, with a record 24,454 suspected cases recorded in 2018 by U.S. banks, according to a report in The Wall Street Journal.

The number of cases has more than doubled over the past five years, and grew by 12 percent since 2017, according to data from the U.S. Treasury Department.

According to the Weinberg Center for Elder Justice, some $2.9 billion dollars is taken from older adults every year. The occurrence of elder abuse among older men is also on the rise.

"Anything having to do with elder financial abuse or exploitation affects a huge part of our customer base," Rob Rowe, associate chief counsel at the American Bankers Association, told the Journal.

Congress last year passed a bipartisan banking reform package that enlists financial institutions as allies in the fight against financial abuse of older adults by allowing professionals to report suspicious activity to law enforcement without fear of being sued, and some states, per the Journal, allow a more aggressive approach.

In Texas and Tennessee, bank employees can refuse or delay transactions when elderly customers request suspicious money transfers.

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WSJ: Elderly Financial Abuse on the Rise

‘The Ultimate Betrayal’: Grandson Of Victim Explains Signs Of Elderly Financial Abuse

As the nation’s Baby Boomers age, more seniors are becoming vulnerable to various forms of financial exploitation.

According to a U.S. Securities and Exchange Commission report released in June, studies have found that 2.7 percent to 6.6 percent of the elder population are victims of such exploitation each year. The report adds that these studies likely underestimate the true extent of the problem.

One man with very personal experience in this area is Philip Marshall, grandson of the late New York City philanthropist Brooke Astor. In 2006, Marshall took legal action against his father, Anthony Marshall, accusing him, among other things, of illegally scheming to take control of Astor’s $100 million fortune. At the time, she suffered from the effects of Alzheimer’s disease.

Anthony Marshall was later convicted on grand larceny and other counts. The case helped raise awareness of elder financial abuse nationwide.

On Thursday, Philip Marshall will address the issue of elder financial exploitation during a conference in Charlotte. He spoke Tuesday with "All Things Considered" host Mark Rumsey.

Mark Rumsey: Philip Marshall joins me now by phone from his home in South Dartmouth Massachusetts. Mr. Marshall good afternoon.

Philip Marshall: Good afternoon, Mark. It’s great being with you here.

Rumsey: Your family's case was highly unusual in the sense that it was very high profile and involved tens of millions of dollars. What is the broader scope of the problem of financial exploitation of elderly people in this country? What are some of the forms that [the abuse] takes?

Marshall: Well what happens is there's a couple things that occur. Scams such as phone scams and what I'll call “pure financial exploitation” involves straight out theft of money or other assets by a stranger. But sadly, as I know from my grandmother sad circumstances, at least two thirds of elder abuse cases occur within a relationship where there's an expectation of trust. It's illegal, immoral and a betrayal of trust — the ultimate betrayal.

Frequently, seniors are poly-victimized. Basically, they endure more than one form of abuse and are re-victimized, especially when there's an intimate long term relationship between the victim and perpetrator.

Rumsey: How clear is the line between, perhaps, some form of inappropriate treatment towards an elderly person with regard to their finances and actual exploitation that would cross all ethical and legal boundaries?

Marshall: It's hard to draw the line but in essence, it's when finances are going to benefit the alleged or actual perpetrator and compromise the senior that the line begins to get drawn.

Rumsey: In your family's case, the key issue was the mental competence of your grandmother Brooke Astor when she signed a will in 2002, right?

Marshall: In my grandmother’s case, abuse and exploitation happened for several years and it started a bit before she was a hundred years old. My father basically used his power of attorney, and he used it as a weapon and a shield to steal — as chronicled by huge irregular financial transactions. After that happened, he became emboldened and he continued his sort of serial exploitation.

[He had] my grandmother sign three amendments to her will to transfer millions of dollars — which was to go to charity — to his control. But it happened three years after he claims that his mother was delusional in a letter to a neurologist.

One of my big pushes now is to connect healthcare and financial professionals because with communication between these professionals, and with mandated reporting and training, such acts could have been arrested early on. The financial industry can serve as an early warning system. Basically, our personal ability to deal with finances is the first thing to go when it comes to cognitive impairment.

Rumsey: Out of your own personal experience, is there a message for family members — children and grandchildren — to be alert to what would seem like the unthinkable possibilities that this kind of abuse could be taking place in their own families?

Marshall: Really have a conversation with seniors. Our silence protects perpetrators, not their victims. Today, victims of this crime might be strangers. Tomorrow, they may be our loved ones or ourselves.

Rumsey: Philip Marshall is the grandson of the late New York City philanthropist Brooke Astor. Mr. Marshall, thanks very much for talking with us.

Marshall: Thank you very much, Mark.

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‘The Ultimate Betrayal’: Grandson Of Victim Explains Signs Of Elderly Financial Abuse

JUST PLAIN TALK: Watch out for elderly financial abuse

Elderly financial abuse has been around for millennia; the Old Testament chronicles it. In Genesis, Jacob deceives his blind father, Issac. While elderly financial abuse is far from new phenomena as our population ages, it is more far-ranging today. Due to embarrassment and shame, incidents rarely make the police files. Newer studies indicate financial shenanigans cost elders more than $30 billion annually.

Protect yourself. Give your advisors the name of a trusted contact who they can speak to should suspicious activity occur. Be aware the trusted contact could be the duplicitous party. Consider multiple contacts and set up a protocol where the advisor can flag suspicious transactions.

In-home caregivers are in a position to commit financial abuse. Caregivers can have more contact than family members. With access to ATMs, credit cards and checking accounts unscrupulous caregivers can drain accounts surreptitiously. Monitor an elder’s bank accounts. Frequent trips to ATMs is a tip-off. To prevent forgery, have all dividend, retirement and Social Security checks deposited electronically. Review grocery store receipts — cash withdrawals at checkout are a warning sign. Corrupt service providers can scam the elderly. Excessive fees for lawn maintenance, replacing HVAC units unnecessarily, or irrigation systems sold at a high premium are examples.

Everyone should have an updated power of attorney (POA). Properly used, a power of attorney (medical or durable) provides legal protection when an elder is incapacitated. However, powers of attorney can be used to benefit the holder of the power. Sometimes the holder can convert property to their name to circumvent a will. Having an incapacitated elder co-sign a loan is another type of exploitation.

Sometimes the elderly are isolated by caregivers. Examples include taking away cell phones, changing locks, failure to open the door and removing elders from their home. Isolation by caregivers is cover for a crime. If isolated, document the circumstances. They aren’t letting you in the home for a reason.

To help detect elder financial abuse follow these red flags from the National Adult Protective Services Association. If an elder’s financial documents or valuables disappear, take action immediately. In the words of Deep Throat, follow the money. Unexplained withdrawals or checks payable to cash are a dead giveaway something is rotten in the state of Denmark. Forfeiture of oversight where an amoral relative or new acquaintance “helps” with the finances is an indicator of dubious activity.

Ask questions if your parents always paid their bills on time, but now creditors start knocking at the door. It can get serious quickly, especially if there are foreclosure warnings or property liens. Other indicators include unpaid bills or utility disconnections.

Elder financial abuse is not simply a disaster monetarily, but can be a personal tragedy since the victims often trust the culprits.

Even though Buz Livingston is a fee-only certified financial planner this should not be considered personal advice. For specific recommendations visit online livingstonfinancial.net or at the office in Redfish Village, 2050 Scenic 30A, M-1 Unit 230.

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JUST PLAIN TALK: Watch out for elderly financial abuse

Letter - Financial abuse

I was born and raised in Henry, S.D. My family experienced several circumstances with the passing of our father who resided in Watertown. I would like the public to be aware of the following information regarding elderly financial abuse.

Financial abuse includes: taking money or property, forging an older person’s signature, getting an older person to sign a deed, will or power of attorney through deception, coercion, or undue influence. Abusers are often adult children or other family members such as grandchildren or spouses whom the elderly trust.

Financial warning signs: withdrawals from the elderly accounts and financial conditions, suspicious changes in the will, power of attorney, titles and policies, addition of names to signature card and financial activity the senior couldn’t have done.

Financial abuse is to gain power and control, but include tactics to limit access to assets or conceal information and accessibility to the family finances.

Financial exploitation occurs when a person misuses or takes the assets of a vulnerable adult for their own personal benefits. This occurs without the consent or knowledge of the senior, depriving him of financial resources for his personal needs. Financial abuse means using a person’s money or property without permission in a fraudulent manner.

If you feel that you can trust a sibling close to an elderly parent, ask for a monthly accounting of how their money is used before their funds are depleted.

When the elderly parent cries because he has no money, believe him and have it all investigated immediately.

The loss of a parent or loved one is already a difficult time for everyone. Taking a few extra precautions to ensure that the loved ones financial affairs are in order before they pass can prevent the extra heartache of losing other family members due to mistrust.

Minerva Strohfus-Hall
New Palestine, Ind.

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Letter - Financial abuse

Elderly residents often target of financial exploitation

While people often dream of retirement and enjoying their golden years, many elderly citizens are living the nightmare of being a victim of financial and exploitation crimes.

These crimes can involve the illegal or improper use of a senior citizen’s funds, property or assets, as well as fraud or identity theft perpetrated against older adults. However , the number of times financial crimes against the elderly occur is hard to establish because it is a crime that tends to go unreported.

“In the first two months of 2017, we had approximately six cases regarding exploitation of the elderly lead to arrests,” Dothan Police Lt. Will Glover said . “Additional cases were investigated, but no arrests were made. Over the years, we’ve had several cases involve family members taking advantage of elderly family members, or caregivers taking advantage of the one they are suppose to be taking care of. We also have cases where it was just someone that was hired to do a job for an elderly resident and , in the end, the individual was charged an extremely higher amount then originally agreed. This is a crime that , over the years, we will continue to see increase.”

According to Glover, it is a good idea to have multiple individuals listed on accounts. By listing more than one individual on the account, the account records are accessible to more than person, m eaning additional eyes are overseeing accounts.

“One major piece of advice I can give family members who have a parent or sibling being looked after by a friend or family member is always make a point to stop and visit your family member,” Glover said. “If you are familiar with your family member’s habits, make a point to check on them. If that family member looks unclean , file a complaint. If you notice past due notices lying around and this is something out of the ordinary, check your family member’s financial records. If that family member does not have the necessary items needed for personal hygiene, food or needed medications, file a complaint. To file a complaint, call your local Department of Human Resources. Once a complaint is filed, someone will be sent over to check on the welfare of the family member. If wrong doing seems to play a factor, the police department is notified, and we start an investigation.”

Some cases have been reported of financial fraud involving a chosen financial power of attorney.

“There is a lot of power in being named financial power of attorney,” said Alabama Department of Human Resources Adult Protective Services worker Summers Hall. “It is very important to make sure the individual who serves as a power of attorney is someone who can be trusted. It is always a good idea to establish an oversight. Individuals may want to include a statement of your power of attorney fiduciary duty in your legal document and require your agent to sign the document which acknowledges his or her acceptance of the fiduciary duty. It also never hurts to require your power of attorney to send regular accounting to additional trusted family members for looking over. Most importantly, remember, you can change your mind regarding who you selected to serve as your power of attorney.”

Bell also reminds family members to discuss with the dangers of having cash lying around in their home.

“Cash puts the elderly in danger,” Bell said. “The elderly need to be very careful who they let in their home. They also need to be very careful who they entrust their debit or credit cards to. Giving a debit card to someone gives them complete access to your bank account. Releasing credit card information also allows someone to write down the information off the card allowing them to purchase items online, not to mention purchasing items for themselves while they are supposed to be purchasing items for who they are looking after. That is what we are seeing an increase in.”

Bell also stated many financial crimes and exploitation of the elderly cases go unreported due to embarrassment.

“In some cases, we have seen older males not want to report a case of being a victim,” Bell said.

“They are embarrassed, and they should not be. However, they look at it as all the years they worked hard and here comes someone they believed they could trust and they fall victim to this crime. They should not be embarrassed. They should report it. The more reports that are made against this crime, the better off our elderly will be.”

According to Houston County Probate Judge Patrick Davenport, financial and exploitation crimes are increasing everywhere.

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Elderly residents often target of financial exploitation