From: judgebean23x@gmail.com   
      
   Elder Financial Abuse: Power of Attorney Scams   
      
   How to protect seniors from abuse of a power of attorney by family or friends,   
   and how to spot this type of financial abuse.   
      
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    Craig T. Matthews & Associates,A Legal Professional Association Profile Image   
   Craig T. Matthews & Associates,A Legal Professional Association   
   Centerville, OH   
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   Financial scams targeting seniors are common. Disturbingly, a growing number   
   of these scams involve family members, relatives, or friends who steal money   
   from an elder when the elder grants them a financial power of attorney. In   
   these power of attorney    
   scams, the family member or friend often claims the money was taken for   
   safekeeping because the elder was senile or needed to be protected from making   
   bad financial decisions. The elder may lose their home, nest egg, or other   
   money and property through    
   power of attorney scams.   
      
   Older Americans are vulnerable to fraud and financial abuse because they   
   commonly experience some degree of cognitive decline -- through natural causes   
   or from medications -- and can have difficulty understanding their changing   
   world. The Internet,    
   personal computers, appliances with complex controls, and other indicia of   
   contemporary life can accelerate disorientation of an aging mind, and seniors   
   who spend most of their time at home can feel isolated and alone. (To learn   
   more about financial    
   scams targeting seniors in general, see Nolo's article Elder Abuse: Financial   
   Scams Against Seniors.)   
      
   As the number of seniors in the general population rapidly increases, there   
   will likely be a corresponding increase in financial scams involving an   
   unauthorized use of a power of attorney. People with elderly loved ones,   
   caregivers of seniors, and elders    
   themselves can prevent or remedy these scams by learning how they work, what   
   steps to take to prevent becoming a victim of a power of attorney scam, and   
   what legal claims are available in the event of a scam.   
      
   A Typical Power of Attorney Abuse Case   
   A case I handled years ago demonstrates how a typical power of attorney scam   
   works. My client, an elderly retired gentleman, lived alone with no immediate   
   family. One day he suffered an injury that required his hospitalization. He   
   knew he would be away    
   from home for weeks and was worried about paying his bills. His nephew arrived   
   at the hospital with flowers and an offer to help.   
      
   The next day the nephew showed up with a power of attorney, which his uncle   
   signed. By the time the elderly man had returned home, his nephew had robbed   
   him blind, using the power of attorney to close bank and investment accounts.   
   Assuring his uncle he    
   was merely keeping the money safe, the nephew had instead transferred the   
   money to an accomplice, who in turn invested it in a mobile home development   
   in South Carolina.   
      
   When the uncle sued, the nephew maintained that his uncle had gifted him the   
   money out of love and affection, and the power of attorney was evidence of the   
   trust his uncle placed in him.   
      
   What Is a Power of Attorney?   
   A power of attorney is a written authorization giving one person the legal   
   authority to act for another person, typically regarding financial affairs   
   like bank accounts and investments. (To learn more about powers of attorney,   
   including the different    
   types and how to make one, see Nolo's Financial Powers of Attorney topic.)   
      
   In the hands of someone trustworthy, a power of attorney can be an important   
   tool to manage the finances of an elder who has become permanently or   
   temporarily unable to handle financial affairs. But, in the hands of a   
   financial predator or a greedy    
   family member, a power of attorney can be used to secretly steal money and   
   assets, readily bypassing the normal safeguards that are employed by financial   
   institutions.   
      
   Power of Attorney Abuse Cases: Legal Claims   
   If you or a loved one is the victim of fraud or financial abuse involving an   
   unauthorized use of a power of attorney, it's important to act quickly.   
   Usually, the best course of action is to contact an attorney. The attorney can   
   assist you in revoking the    
   power of attorney, demanding the return of the stolen money and property, and,   
   if necessary, filing a lawsuit. (You can use Nolo's Lawyer Directory to find   
   an attorney in your area.)   
      
   The most common legal claims in a case involving the abuse of a power of   
   attorney are "breach of fiduciary duty" and "conversion." Both of these claims   
   are based upon a legal concept known as "fiduciary duty." When an elder signs   
   a power of attorney, it    
   creates a fiduciary relationship between the elder (called the "principal")   
   and the person who is authorized to act on behalf of the elder (called the   
   "agent"). Under this fiduciary duty, the agent owes the elder a duty to act   
   with the utmost good faith    
   and loyalty when acting on behalf of the elder.   
      
   Breach of fiduciary duty. When an elder signs a power of attorney, the   
   fiduciary duty created by the document imposes certain duties on the agent.   
   For example:   
      
   The agent must keep the elder informed of things that affect the elder's   
   interests.   
   The agent may gain a profit only if he or she informs and gets consent of the   
   elder.   
   The agent may not acquire an interest adverse to the elder or reap a secret   
   profit.   
   The agent may not transfer the elder's property to him or herself (or to   
   others) unless the power of attorney specifically confers that power.   
   If the agent fails to act in accordance with these fiduciary duties of   
   fidelity and good faith, the agent may be liable for breaching (that is,   
   breaking) the fiduciary duty.   
      
   Conversion. An agent who uses an elder's assets for his or her own benefit may   
   also be liable for conversion of the elder's property. In order to establish   
   conversion of property, the elder (or the elder's lawyer) must show that the   
   defendant managed or    
   used the elder's property in a way that was inconsistent with the elder's   
   rights of ownership. When the agent has used a power of attorney to convert   
   the property, it must also be shown that 1) the elder demanded the return of   
   the property, and 2) the    
   defendant refused to deliver the property to the elder.   
      
      
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