Legal Definitions of Financial Abuse
“Financial abuse” of an elder or dependent adult occurs when a person or entity does any of the following:
- Takes, secretes, appropriates, obtains, or retains real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.
- Assists in taking, secreting, appropriating, obtaining, or retaining real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.
- Takes, secretes, appropriates, obtains, or retains, or assists in taking, secreting, appropriating, obtaining, or retaining, real or personal property of an elder or dependent adult by undue influence.
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Financial abuse comes in many forms. Examples include:
- care taker theft
- life insurance agents selling unsuitable annuities simply to earn a commision
- mortgate brokers selling reverse mortgages or refinancing existing mortgages
- a self interested son or daughter who takes control of the elder’s home and finances