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.

New Elder Abuse Laws Signed by Governor Schwarzenegger

California Governor Arnold Schwarzenegger signed into law this week several bills aimed at curbing elder abuse and providing greater protection for the elderly in the State of California. Here is a brief summary of the new laws:

AB 2100 requires ombudspersons at long-term care facilities to report cases of alleged or suspected physical abuse, including sexual abuse, and financial abuse to the local district attorney’s office. The purpose of this bill is to encourage the reporting of suspected cases of abuse.

SB 1140 extends the statute of limitations for a claim for damages due to financial elder abuse to four years from the plaintiff discovers, or should have discovered, the abuse. Presently, the statute of limitations on such a claim is three years. In addition, the definition of financial abuse of an elder is expanded to include the action of taking, appropriating, obtaining or retaining, real or personal property by undue influence.

SB 1136 makes it a misdemeanor to charge an “unconscionable fee” to qualify a person for a public social service benefit, including Medi-Cal.

AB 225 extends the protection of a restraining order to include named family members, household members and conservators of the elder abuse victim.

AB 2149 regulates the use of “expertise” designations and requires advisors to take training courses before holding themselves out as having specialized knowledge regarding the financial needs of seniors. The bill is designed to prevent the elderly from falling prey to unscrupulous financial advisors who claim to be experts on financial planning for the elderly.

Also signed into law were two bills targeting nursing home and residential care facilities. AB 2370 requires residential care facilities to post information regarding recent rate increases on an annual basis, and also requires the disclosure of rate increase information to new residents, and, upon request, to prospective residents. AB 749 requires residential care facilities to have a comprehensive emergency plan by March 1, 2009 that provides that the facility will be self-reliant if necessary for at least 72 hours. The plan must be available to residents and emergency personnel.

The new laws are designed to protect the elderly in the event of a disaster and protect them from financial elder abuse.

Thanks for reading my blog. If you suspect that a loved one has been the victim of elder abuse, contact me to schedule a confidential consultation and for immediate assistance.