Stopping Financial Fraud and Abuse

Transcription

1 Stopping Financial Fraud and Abuse Keys to Success July 13, 2015 Sponsored by: National Association of Area Agencies on Aging

2 Panelist Introductions Moderator Paul Greenwood, Deputy District Attorney,San Diego County, California Expert Panelists Joseph Snyder, Director of Older Adult Protective Service at Philadelphia Corporation for Aging (PCA) Ronald Long, Director of Regulatory Affairs and Elder Client Initiatives, Wells Fargo Advisors 2

3 AVOID STEREOTYPING OF SENIORS Forgetful Senile Longwinded Grumpy Disabled Fragile

4 Watch for an explosion of elder financial abuse cases

5 Financial Abuse: Theft Credit card fraud Real Property transfers Home Improvement scams/burglaries Work by unlicensed contractors/overcharging Telemarketing, sweepstakes & scams Investment fraud

6 Building the case.

7 Where do reports come from?

8 Adult Protective Services (APS) APS is statutorily authorized under State and Tribal law to receive and investigate reports of elder abuse including financial exploitation In almost all states APS serves all adults with significant disabilities 18 and above and in a few states APS serves older persons only.

9 Adult Protective Services (APS) Programs stress older person s right to make own decisions but take protective actions when it is determined that senior lacks capacity to make decisions Reporting to APS generally confidential; banks often permitted to report; maltreatment does not have to rise to level of criminal behavior Puts older person in touch with services; Reduces isolation

10 Who can and should file reports?

11 Who Can and Should File Reports Financial Institutions Mandatory Reporters determined by statute and state Medical Staff Service Providers

12 Wells Fargo Advisors Organizational Chart

13 Top 5 Challenges POA Abuse 3 rd Party Investment Scams Dementia / Diminished Capacity Familial Disputes New ( and expensive) Best Friends 13

14 Common Scams Lottery Scams Grandma Scams Trust Mill Scams

15 Destroying some myths. Some of these myths affect all forms of elder abuse Some affect only financial elder abuse

16 Myth #1 Elderly people make terrible witnesses Myth # 2 If elderly victim refuses to provide information, there is nothing that can be done

17 We can still build a case by talking to other key witnesses Start on the outside and work your way to the middle Let the DA figure out a way to break through victim s wall of silence

18 Victim declines prosecution

19 Why self-determination is a problem If not punished, the perp WILL abuse again We CAN convict even without the assistance of the victim Abuse is a crime against NOT JUST the abused

20 Myth # 3 If elderly victim gives the money voluntarily, it is not a crime Myth # 4 If the financial institution reimburses the elderly victim and then declines to seek prosecution, we have no victim

21 Myth #5 If victim is deceased before we discover the theft, we cannot prosecute Myth #6 Any case where the elderly victim is involved in a home repair & there is a dispute over money this is ALWAYS a civil matter.

22 Myth # 7 - the anyway excuse There are more important cases out there and anyway we don t have the additional resources The victim was going to die anyway She was going to inherit anyway Myth # 8 We don t have jurisdiction... the crime did not occur here...

23 What Do We Want to Know While Building a Case

24 Lack of consent To consent to a transaction a person must: Act freely & voluntarily & not under the influence of threats, force or duress Have knowledge of the true nature of the act or transaction involved Possess the mental capacity to make an intelligent choice whether or not to do something proposed by another person

25 Consent requires a free will and positive cooperation in act or attitude

26 Undue Influence Victim was pushed in a direction that he did not want to go. The influence by suspect was sufficient to remove the voluntariness of the transaction No longer free will Victim has been evaluated by a geriatric psychiatrist/psychologist

27 How to prove undue influence? Length of relationship Place of first meeting Prior spending habits Prior charitability What is left? Multiple escalating transactions Statements & conduct by suspect

28 What do we do?

29 Witnesses Bank teller Pastor Neighbor Doctor, pharmacist, optometrist of V Family Ex- spouse of suspect Business contacts of suspect

30 Evidence collection Bank, credit card statements Bank surveillance tapes Prior medical records Look for the inappropriate purchases Ask questions, questions, questions!!!

31 Interviewing an elderly victim Venue is important Build a rapport Look for achievements Try to identify areas of vulnerability Preserve the interview on video

32 Evaluating the victim s cognitive functioning Memory deficits? Memory tests

33 Assess the impact of the crime Financial Emotional Residual

34 What Can We Do To Prevent Financial Fraud and Abuse

35 Adult Protective Services Variations in Program Practice and Standards MDT s and Taskforce Developing All Over the Country National Financial Exploitation Advisory Board

36 Recent Development in Combating Financial Exploitation Global Summit Creation of National Institute on Elder Financial Exploitation Creation of Standard Form to Request Records

37 One Firm s Inventory Training Partnerships Centralized Unit Educational Outreach Client Focused Information 37

38 Own it Observe Are there physical changes? Patterns and habits are different? Wonder Why Why is money missing? Negotiate Isolate Tell Negotiate the delay of money movement. Talk to the elder alone. Contact appropriate authorities to report suspected financial exploitation. 38

39 What Is Still Needed to Combat Financial Fraud and Abuse

40 What is needed? Help with Diminished Capacity. Work on Privacy Safe Harbors. Express Authority to Delay or Decline. Nationwide Entry Point & Database of Elder Financial Abuse Cases. Online Form for Reporting at State and National Levels.. SARs Reporting Clarification, Dedicated Review and Additional Considerations. Better access to financial documents needed to prove an elder financial abuse case. 40

41 What is needed? (cont.) Better Trained and Coordinated Efforts with APS, Prosecutors, Regulators, Industry & Investors. Eliminate the Chilling Effect of Reporting Elder Financial Abuse. Public, Private and Non-profit Partnerships. Public Service Announcements. National Oversight Agency to coordinate APS. Communications from APS to Financial Institutions on opening, closing or current status of cases. Uniform standards to accept APS cases. 41

42 What Are Keys to Success

43 Keys to Success Make timely reports to Adult Protective Services Help Build the case with facts and quick action Know your community resources and create networks that include Financial Institutions, Adult Protective Services, Law Enforcement and Prosecutors.

44 Philadelphia Financial Exploitation Taskforce Members Beneficial Bank Citizens Bank CARIE Philadelphia Corporation for Aging Philadelphia District Attorney Philadelphia Police Department PNC Bank Senior Law Center Susquehanna Bank TruMark Credit Union University of Pennsylvania Healthy Brain Research Center U.S. Department of Homeland Security

45 Current Resources

46 National Guidelines To Implement The 2013 Federal Interagency Guidance On Privacy Laws And Reporting Financial Abuse Of Older Adults For local resources, check the Eldercare Locator: eldercare.gov or toll-free at

47 Wells Fargo Hands on Banking Seniors ( American Bar Association Legal Issues Related to Elder Abuse: A Pocket Guide for Law Enforcement ( National Center for Victims of Crime Webinar Series - Recognize, Report, and Recover ( 47

48 San Diego District Attorney s Office - National Center on Elder Abuse -

49 Questions?

50 THANK YOU! sponsor of the Stopping Financial Fraud and Abuse: Hot Topic National Association of Area Agencies on Aging