Spotlight on Financial Abuse

Article reproduced from the newsletter, Breaking the Silence, Winter/Spring 2006 Issue. The newsletter is produced by FSA Toronto and Elder Abuse Consultation Team

Financial or economic abuse is the theft of money or property. It can also include the misuse of money or property, withholding funds or fraud. Fraud is generally, but not always, perpetrated by a stranger, whereas financial abuse is perpetrated by someone known to the older person.

Reporting to the Office of the Public Guardian and Trustee

To make an allegation that a person is mentally incapable, that they are at risk of suffering serious personal or financial harm, and that prompt action is needed to prevent the harm from occurring or continuing to occur, or to discuss concerns about the conduct of an attorney acting under a power of attorney for personal care or continuing power of attorney for property, call the intake unit of the Office of the Public Guardian and Trustee at 416- 327-6348 or 1-800-366-0335 to consult on a situation or report it.

Financial abuse may be manifested in many forms, including but not limited to:

Unexplained or sudden withdrawal of money from an older person’s account(s).
Refusal to spend money without agreement of a family member.
Signatures on cheques and other documents that do not resemble the older person's signature.
Unexplained disappearance of older person’s possessions.
Selling property without permission.
Opening mail without permission.
Charging excessively for goods or services.
Change in spending patterns, such as buying items he or she doesn’t need and can’t use, or shopping at stores that the older person would not normally go to.

A person may experience some of the following signs as a result of being financially abused:

Not being allowed to make their own financial decisions.
Not feeling they have choices on things such as sharing their home or car or babysitting.
Being charged excessive amounts of money for services performed by the perpetrator such as grass cutting, snow shovelling, repairs around the house.
Being pressured to loan money to a relative or friend without a written agreement for repayment.
Frequent requests for small amounts of money.
Family members moving into an older person’s home without prior agreement on shared costs.
Older person providing a down payment on a home that everyone will live in without a written agreement with respect to who pays for what.
Taking money or cashing pension cheques without permission.
Pressuring an older person to sign over their house or other property.

Case Example

Ms. W owns her own single dwelling home with both of her two sons living in the home. One of her sons lives in the basement and has shown numerous symptoms of suffering from alcoholism. He is currently waiting for court sentencing on a number of charges, including driving under the influence and has had his vehicle apprehended. Although one condition of a previous sentence was to seek treatment, and he claims to be attending treatment groups, he is still coming home smelling of alcohol on many occasions.

Due to health concerns related to his alcoholism, this son has not been working for at least two years. He has been verbally abusive and caused harm to their dwelling and Ms. W has shown fear for her safety in the home.

In order to sustain his addiction, this son demands money from his mother, and although she tries to dissuade him, out of fear she gives in to his demands. Ms. W is becoming more and more isolated as time goes on. Few people are aware, and fewer are encouraging her to take action. She loves her son and does not want to take action against him; however, she does not want to live in fear and financially maintain his addiction.

When Does Financial Abuse Occur?

Financial abuse can happen when:

The perpetrator really wants or needs money, whether the need exists because of greed, unemployment or debt.
The perpetrator may stand to inherit and feel justified in taking what they believe is “almost” or “rightfully” theirs.
The perpetrator has the opportunity to take advantage of the older person.
The perpetrator may feel a sense of “entitlement”, or want to prevent other family members from inheriting assets from the elder.

Financial abuse is a pattern rather than a single event. It often happens over a long period of time and may not be detected until an older person’s funds are severely depleted. Criminal Code Offenses No form of financial abuse is acceptable. Several actions committed by perpetrators are Criminal Code Offenses (sections of the code are indicated in parentheses). Charges that can be laid include:

Theft (s.322)
Forgery (s.366)
Theft by a person holding a Power of Attorney (s.331)
Fraud (s.380)
Stopping mail with intent (s.345)
Extortion (s.346)

Potential Intervention Options

(Note: these options speak to more than just this case example)

Encouraging the older person to speak with a legal representative.
If a signature is being forged on pension cheques, contact the Canada Pension Plan Forgery Unit at 1-800-277-9914 with the permission of the older person. This is best done with the person so he or she can give verbal consent to talk to the person helping with the case, or have the older person do it alone.
Using reality-based therapy (i.e. if you do not pay your rent, you will be evicted, and the implications of this are.).
Arrange with the client to have bills direct debited out of a bank account that the perpetrator can not access.
Work with the older person to open a separate bank account, preferably at a different bank branch or different banking institution.
Work with the client to contact Pension authorities to have pension cheques directly deposited or sent to a new account.
Help the older person to understand that people make choices to take advantage of others and they do not do this because they are ill, sick, addicted or poor.
Provide education to an older person that a power of attorney for property can be exercised as soon as it is signed unless the grantor puts restrictions into the power of attorney document (Note: This is different from a power of attorney for personal care which can only be activated after the grantor has been determined not capable of making a specific personal care decision).
Encourage the older person to cancel any bank cards or credit cards the perpetrator may have access to and establish a new bank card with a secret access code that is not shared with the perpetator.

Everyone in society has a responsibility to work to prevent financial abuse. Suggestions for Older Adults

Be a part of a group of friends who stay in touch regularly (isolation is one the largest contributors to abuse).
Learn the signs of financial abuse.
Keep track of all property, bank accounts and belongings.
Keep money in a bank or financial institution, not at home.
Have pension cheques deposited directly into a bank account.
Write a plan for repaying money before lending it to a relative or friend.
Prepare a will with a lawyer's help, review it periodically, and change it only after careful thought.
Talk to a lawyer about powers of attorney, and about what will happen if he or she cannot manage alone.
Ask a trusted friend or family member to review all papers before signing. Suggestions for Concerned Citizens
Spread the word about the problem.
Advocate for needed policy and reform.
Volunteer to provide critical assistance to vulnerable persons and the agencies that serve them.
Reach out to vulnerable neighbours, friends, or family members and educate them on risk factors and how to prevent financial abuse.
Learn more about the problem and services that can help.
Get involved by joining a coalition, spreading the word, advocating on behalf of the issue and volunteering to work with an older person.
Talk to an older adult about future plans in case he or she should become unable to manage finances alone.

Why are older people attractive targets?

Many older people do not realize the value of their assets (particularly homes that have appreciated markedly).
Perpetrators may assume that older people will not survive long enough to follow through on legal interventions, or that they will not make convincing witnesses.
Some older people are unsophisticated about financial matters.
Advances in technology have made managing finances more complicated for some older people.
Older people are more likely to have contact with others to assist them with activities of daily living such as finances and home maintenance. These people may have access to homes and assets, and may exercise significant influence over the older person.

The Realities of Financial Abuse for Sponsored Immigrants

Older persons who are sponsored may experience a variety of issues, including:

Culture shock.
Social isolation.
Loss of social status.
Lack of income (Canada Pension Plan and Old Age Security are time sensitive and older persons who are sponsored must typically rely on the person who sponsors them for ten years).
Language barriers can force the sponsored individual into a position of complete or almost complete dependency on the sponsor.
Language barriers can also prevent access to and use of information and services.
Experiencing societal, gender and age roles different from that which they are accustomed to.
Being alone once no longer needed for child care. Concerns of sponsored seniors who are being financially abused may include:
Potential mistrust of the judicial system.
Lack of confidence in the banking system due to upheaval in financial markets or corruption in financial institutions in their home country.
Do not want themselves or their sponsor to be deported.
Financially dependent on sponsor.
Often sponsored to aid with child care and they do not want to abandon their grandchildren.
Uneducated concerning Canadian laws.
Services not being culturally sensitive.
The fact they have few or no assets "back home" and can't return.
There are a lack of interpretative services available for older persons which makes "telling their story" difficult if they do find someone who may be able to help.

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