Incidents of Financial Elder Abuse Are on the Rise as California’s Baby Boomer Generation Begins to Age

Financial elder abuse is a growing concern among California lawmakers, financial regulatory institutions, and elder abuse prevention groups. A study released last year by the MetLife Mature Market Institute, the National Committee for the Prevention of Elder Abuse, and the Center for Gerontology at Virginia Polytechnic Institute and State University, reported an annual loss of $2.6 billion due to incidents of financial elder abuse, which many experts believe are underreported.

California news articles are constantly reporting on incidents of financial elder abuse committed by caregivers and family members, as well as by financial institutions and their employees. Below are just a few recent examples:

• A February 4, 2010 San Francisco Chronicle article reported the theft of $61,000 from a 96-year-old woman by a Bank of America customer service representative who convinced the woman to designate him as her “personal banker,” allowing him to access her accounts.


• A January 14, 2010 Santa Maria Times article reported that the Santa Barbara County Sheriff’s Department arrested a caregiver who was suspected of stealing over $10,000 from an 88-year-old woman by cashing her unused checks.


• A January 10, 2010 Investment News article reported that $1.6 million was awarded to a 95-year-old man by a Financial Industry Regulatory Authority (FINRA) arbitration panel after it found that a Beverly Hills investment firm, along with two of its long-time brokers, convinced the man to make overly risky investments and engaged in self-dealing. (FINRA is an independent regulatory agency, empowered by the federal government to oversee securities and brokerage firms and protect investors.)
  

If you believe that you or a loved one has been a victim of financial elder abuse, contact The Law Offices of James R. Gillen for a confidential consultation.