Curbing Elder Financial Abuse Through Required Reporting To Authorities

The fifth in a series of editorials by the Contra Costa Times (Northern California) on elder financial abuse focuses on a California state law, which became effective in January, 2007, which requires reporting of suspected elder financial abuse in certain cases:

• [The Financial Elder Abuse Reporting Act] requires all employees of financial institutions - banks, credit unions and savings and loans - to contact the police department or Adult Protective Services if they suspect that an elderly person is a victim of financial abuse. Those who fail to do so face fines of up to $5,000. Financial institution employees now join other so-called mandated reporters who often come into contact with elderly people and are in a position to detect hidden abuse. They include health care workers, state and county employees, nursing home staff, clergy, and law enforcement.

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• When it comes to elder financial abuse, financial institutions are often the scene of the crime. Brazen elder predators have been known to march seniors up to the teller window in their pajamas. Our financial institutions are an important early warning system for detecting elder abuse. Their employees can spot unusual activity on an elderly customer's account, such as a $150,000 wire transfer going to a foreign lottery, or a $135,000 check written to an accountant for a bogus tax bill.

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• California law makes it easy for financial institution employees to do the right thing. They don't even have to worry about getting in trouble if they make an honest mistake. They can't be prosecuted unless they knowingly make a false claim. No one's asking tellers to play detective, only to report in a timely manner by telephone or in writing possible crimes occurring before their very eyes.

The editorial includes the story of one 82 year-old widower who (prior to the new law becoming effective) was in the process of having his bank accounts at four financial institutions cleaned out by a scam artist when, because of the actions of alert employees at one of the institutions, an ex-felon's elaborate scheme to steal everything that the elderly man owned was foiled. It turns out that the predator had also set himself up to inherit the widower's $400,000 home and annuities worth $200,000. He's now in prison, serving a 10-year sentence for elder theft.

For more, see Theft of Elder Nation: An editorial series (Requiring reporting) (may require free registration).

Go here for all posts and links to this Contra Costa Times editorial series on elder financial abuse.

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