What is Elder Financial Abuse Under California Law?

November 29, 2024 Posted In Uncategorized

Elder financial abuse is a type of elder abuse that involves the illegal or improper use of an elder’s funds, property, or assets. The state defines an “elder” as anyone aged 65 or older.

Unlike fraud committed by strangers or family members, institutional abuse can be especially difficult to detect. Elders in care settings are often isolated, cognitively vulnerable, or entirely dependent on the very people exploiting them. Understanding how California law defines and addresses this abuse is the first step toward protecting your loved one.

California Law on Elder Abuse

California Welfare and Institutions Code § 15610.30 defines financial abuse of elders and dependent adults as the wrongful taking, hiding, misusing, or retaining of their property. Key provisions include:

Acts Constituting Financial Abuse:
- Taking, retaining, or misusing an elder’s property with intent to defraud or for wrongful use.
- Assisting others in such actions.
- Using undue influence, as defined in Section 15610.70, to obtain or control the elder’s property.
Wrongful Use: A person or entity is considered to have acted wrongfully if they knew or should have known that their actions would harm the elder or dependent adult.
Property Deprivation: Financial abuse includes depriving an elder or dependent adult of their property rights, whether directly or through agreements, transfers, or wills.
Role of Representatives: Representatives, such as trustees, conservators, or attorneys-in-fact, may also be involved in financial abuse if acting outside their legal authority.

Importantly, an institution is considered to have acted “wrongfully” if it knew or should have known that its conduct would harm the elderly patient. This means that willful ignorance is not a defense.

Common Types of Elder Financial Abuse in Hospitals and Nursing Homes

Common examples of elder institutional financial abuse include:

Theft of personal property: Stealing cash, jewelry, electronics, or other valuables.
Billing Fraud: Charging for services never provided, inflating invoices, or billing Medicare/Medi-Cal for unnecessary procedures. Which ultimately drain their estate or benefits.
Undue Influence: Manipulating an elder to make financial decisions against their best interests, often benefiting the abuser.
Identity Theft: Using an elder’s personal information without consent to commit financial fraud. Their information is accessible through medical records or intake paperwork.
Embezzlement by Fiduciaries: Misappropriating funds by facility appointed trustees, conservators, or financial representatives who manage the elder’s funds.
Unauthorized Account Access: Facility staff or administrators accessing an elder’s bank accounts, credit cards, or personal funds under the guide of “helping” with finances.
Coerced Documents: Pressing a vulnerable elder to sign financial documents, powers of attorney, or agreements that benefit the facility or its staff.

These acts not only deplete the individual’s finances but can also cause emotional distress and loss of independence.

Penalties and Civil Liability for Elder Financial Abuse in California Institutions

California Penal Code § 368 classifies elder financial abuse based on the value of the property taken and the circumstances surrounding the crime. The penalties include:

Property Value Less Than $950

Misdemeanor charges.
Penalties include up to 1 year in county jail and fines up to $1,000.

Property Value Exceeds $950 or Involves Fraud

Felony or misdemeanor charges (at the prosecutor’s discretion).
Felony convictions can result in up to 4 years in state prison and fines up to $10,000.

Enhanced Penalties

If the abuse causes significant financial harm or emotional distress, courts may impose harsher sentences. Repeat offenders or those in positions of trust (e.g., caregivers or administrators) may also face additional penalties.

Civil Liability

Recovery of all stolen or misappropriated assets
Compensation for financial and emotional damages
Punitive damages when the abuse involved malice, fraud, or oppression

Warning Signs to Watch For

Family members and loved ones should be alert to these red flags when a senior is residing in or receiving care from an institution:

Unexplained withdrawals or charges on bank or credit card statements
Missing personal belongings such as jewelry, cash or electronics
Facility staff requesting that the elder sign financial documents
Overcharging for services, or billing for care that was never delivered
An elder appearing fearful, confused, or reluctant to discuss finances
Sudden changes to estate plans, beneficiary designations, or financial accounts

Resources for Victims of Elder Financial Abuse

Fortunately, the state offers various resources to support victims and prevent this type of exploitation.

Adult Protective Services (APS)

APS provides assistance to elders (60 or older) and dependent adults who are victims of abuse, neglect, or exploitation. Services are available regardless of income and at no cost. To report abuse, call 1-833-401-0832 and enter your 5-digit zip code to connect with your county’s APS office, available 24/7.

Local Law Enforcement

Victims or concerned individuals can report suspected financial abuse to local police or sheriff’s departments, which often have units dedicated to elder abuse.

California Department of Financial Protection and Innovation (DFPI)

The DFPI offers resources on preventing and reporting elder financial abuse, including guides and reporting forms. They also provide educational materials to help seniors protect themselves from financial exploitation.

Legal Assistance

Victims should consult a trusted Riverside elder abuse attorney as soon as possible. They can help pursue civil claims against perpetrators to:

Recover stolen or misappropriated assets.
Seek compensation for damages, including emotional distress.
Request punitive damages if the abuse involved malice, fraud, or oppression.