What Can I Do if I Suspect That Someone Given Power of Attorney Is Acting Fraudulently?
Answers
A person named as an agent in a power of attorney has the legal duty to act in "the best interests" of the principal -- that is, the person who made the document. While that's a little fuzzy as a legal standard, the greater practical truth is that you know fraud when you see it: for example, money being siphoned from a bank account instead of being used to provide for the principal's health and safety.
An outsider trying to detect such fraud, however, is pinned in a difficult spot, since it may be tough to find out exactly what the agent is doing. In most states, the agent will not automatically be required to account or report to a court or to family members or other concerned individuals.
Your first step will be to get specific about your concerns about exactly what makes you suspect fraud is occurring. Then try to have an honest talk with the agent. Don't be accusatory; simply emphasize that you're interested in knowing what's going on. Also let him or her know you're available to help or that you support the idea of hiring someone else to lend some assistance -- perhaps a bookkeeper to do some basic accounting -- if that will relieve the burden of acting as agent. In a surprising number of cases, that show of care and concern clears up the matter.
If that step isn't possible or successful, you might ask a court to review the agent's acts to make sure they're on the up-and-up, and possibly to require an accounting so that the finances can be more directly monitored. To start this procedure, check the requirements of the nearest probate court. You should be able to find it by searching for probate court and the name of the city or county.
Defrauding an older person may be a form of financial abuse, which is strictly prohibited by the elder abuse laws in effect in every state. If you're fairly certain that some financial abuse is occurring and have good evidence to prove it, such as past-due bills that should have been paid for the principal, or receipts showing the agent used the principal's money for his or her own gain, consider consulting the office of adult protective services nearest to where the older person lives. You can find contact information by doing an Internet search of adult protective services along with the name of the state. Most of these agencies operate confidential hotlines to help callers define and direct their complaints, can provide referrals to local sources for more help, and sometimes undertake investigations on their own.
Finally -- again, if you're fairly certain that financial abuse has occurred and have some solid evidence to prove it -- consider hiring an elder law attorney for help in filing a claim against the agent. Before making any decision to hire, make sure the lawyer is experienced in seeking compensation from people who have abused and misused powers of attorney by intentionally stealing property or negligently handling someone else's property.
Here's a hint! When and if reporting to the local police departments, it is advised to have contacted the local Adult Protective Services first. APS wil do an investigation which the local police may not have the time to do right away. Many times the local police have more pressing crimes to contend with and not being funded to provide the proper personnel, the status of the elderly gets put "on the back burner". With the APS report, they will be able to begin to focus their limited resources towards gathering the necessary evidence and the chances for the conviction will be enhanced.
Blanche Katz, MSN, RN, GNP The ElderCare Educator
Please listen ! A lot of time when you give Power of Attorney to someone,they will turn into a monster.You think you know them ,but you don't.You will be made a big mistake. I know of a case where the Mother gave a her own daughter POA,and the Mother was just fine living alone and taking care of herself and the daughter put her in a nursing home,and the other daughter had to really fight a battle to get her out of the hursing home.The daughter who had the POA even stopped the other daughter from visting her Mom in the nursing home.PLEASE LISTEN TO ME,THEIR IS A LOT OF PEOPLE WHO HAVE HAD THE SAME TROUBLE FROM GIVING THE POA TO SOMEONE.PLEASE KNOW WHAT YOU ARE DOING WHEN YOU SIGN YOUR POWER OF ATTORNEY OVER TO ANYONE.IT SHOULD BE NAMED ( POWER OF MY LIFE ).THE PERSON YOU SIGN THE POA OVER TO RUNS YOUR LIFE ,AND DOES WHATEVER THEY WANT TOO, THEY DON'T EVEN HAVE TO ASK YOU BEFORE THEY DO WHATEVER THEY WANT TOO TO YOU ! .I PRAY THIS WILL OPEN YOUR EYES.DON'T EVER SIGN A DURABLE POWER OF ATTORNEY OVER TO ANYBODY PLEASE. IF THIS HASN'T CHANGED YOUR MIND IF YOU WAS GOING TO SIGN ONE OVER ,AT LEAST PLEASE LOOK IT UP ON YOUR COMPUTER ,OR GO TO A NURSING HOME AND SEE ALL OF THE PEOPLE (MOTHERS AND FATHERS ) THAT CRY DAY AND NIGHT THAT HAVE SIGNED THEIRS OVER TO SOMEONE THEY TRUSTED AND LOVED.
I had a similar problem with a sibling who had POA and then I discovered that she was committing fraud. I collected all the evidence and documentation and then went to my father's lawyer who helped me get her POA revoked. The Adult Protective Services may be able to help as well, but it would take longer, especially if the parent is not able to participate fully in the process. It is very sad when this situation occurs. Because of the POA revocation, my sibling has spread vicious rumors to extended family that I am keeping her from her father, yadda, yadda, yadda. To anyone who finds themselves in this situation I have but one word of advice: documentation. With clear documentation of the fraudulant activity, you can live with all the naysayers knowing that you did the right thing to care for your parent. Good luck!
ANOTHER POINT OF VIEW
As a caregiver, initially with a POA, I made sure to keep track of every single detail. My sister, brother, and I didn't get along and when my husband and I moved my father from his Wisconsin home of 45 years into our California home, I didn't want to be charged with kidnapping.
Although, neither my sister or brother (who lived in our father's home) seemed to "notice" my father was gone.
Still, I didn't know what to expect and made sure to keep records of everything.
So, when the time came for them to accuse me of not being a good fiduciary (because I went after my brother for funds he was not entitled to), I was able to stand upright in court and defend my actions without any hesitation.
Sadly, his high-powered (high cost) attorney LOST and was disappointed that his client (my brother) didn't paint the full picture for him while my small neighborhood attorney felt vindicated--despite her initial fears of standing against a large law firm with oodles of staff.
BOTTOM LINE: KEEP records of EVERYTHING.
I agree with the above response. Transparency is of utmost importance. I, too, have kept records of every single penny spent and have every receipt for every purchase. I have also made it clear to my siblings that if they have any questions about what I have done, I would be happy to sit down with them to go over everything. Like the previous responder, when the time comes to go in front of a judge to recover monies taken prior to my taking over, I will be able to stand tall knowing I did everything possible to keep everything above board and did what I needed to do to be able to care for my father.
My sister once borrowed $40,000 from my mom. I was in the bank when she was mouthing off and making sure everyone heard. "Oh, I'm paying back my mother the forty thousand dollars I borrowed." The phony only did that to make herself feel better. Later on down the road she would wind up embezzling all my mothers money, over $190,000 to divy out how she wanted. My sister's daughter who had nothing to do with my mother. Didn't visit in the hospital, didn't visit in the nursing home , didn't go to my moms funeral, got more money than me, the real daughter. My x-sister needs to dig a hole in her front yard and bury her crooked HEAD. I'm going to write a book and name names. There are alot of culprits in my story. I don't know how she sleeps at night. I have kept alot of records and she left alot of evidence.
YOU ARE A GOOD PERSON FOR TAKING UP FOR YOUR MOM.SOME PEOPLE THINK THEY SHOULD GET ALL OF PARENTS MONEY.BUT THAT IS FAR FROM THE TRUTH.KEEP YOUR HEAD UP AND SHOW YOUR SISTER THAT YOUR MOM HAD MORE THAT ONE CHILD.DON'T GIVE UP ! YOU ARE 100% RIGHT. MAY GOD BLESS YOU.
I feel for all of the people who have had issues. Be aware that a well devised plan of POA, trust etc are key tools to help someone when they are having challanges doing it them selves. It was not the plan that created monsters. It was the desicions of individuals. My grandparents would be in a world of trouble and their lives would be controlled by strangers who saw them as a case if I had no authority. Be wise and use the tools but do think about who, why and when they should be used. Have an attorney incorporate these desires into the plan.
Be careful on your approach of acaregiver. The task is far more stressfull, demanding and even costly than even the care giverexpects. Being challanged by someone who doesn't participate is likely to test the relationship you have with them. Many caregivers feel no one cares about the person(s) like they do. Sometimes they are given strict guidelines to not discuss money with anyone else. This was my case.
My father made my younger sister POA. None of the rest of the family knew about it. My eldest sister and her husband did most of the care giving for our father.
Although my father's will had designated that all of his 5 children were to share his property equally, after he died we soon found out that our youngest sister had tricked him into making everything payable directly to her upon death (POD). When he changed his CD's to PODs payable to her, he was in his late 80s, and could barely see and hear. She had had his mail directed to her home and kept all records hidden from the rest of the family. She stole the complete inheritance.
You might wonder why we do not hire a lawyer and sue the sister who got hundreds of thousands of dollars when we got nothing. She can now afford a very good attorney. Attorneys are expensive and the rest of us are barely getting by in this economy. I just lost my home to foreclosure.
All of us were very close to our father and the younger sister. We could not believe how she could do this to us. She was the one who did the least for him and avoided spending time with him personally or on the phone.
my thoughts of your fathers reasoning was he felt at peace with his "fatherhood" with all of u, but the youngest; therefore, he did what he had to, to show her he loves her too..
