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Health & Fitness

White Legislation Would Protect Senior Citizens from Financial Exploitation

The issue of financial crimes, including fraud, theft, and other deceitful practices against older adults is a serious problem in Pennsylvania. According to the National Adult Protective Services Association, 1 in 9 seniors reported being abused, neglected, or exploited in the past 12 months.  In addition, 1 in 20 older adults indicated some form of perceived financial mistreatment had occurred in the recent past. Financial exploitation of senior citizens occurs at increasing rates annually; however, only 1 in 44 cases of financial abuse is ever formally reported.

To address these problems, I have written and introduced House Bill 2057 to protect senior citizens from financial exploitation and abuse. My legislation creates a new chapter within the Older Adults Protective Services Act dealing with financial exploitation of senior citizens. This bill addresses four specific problems related to helping senior citizens who are the victim of such exploitation:

 
1.       Immunity for Financial Advisors

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A financial advisor who has reasonable cause to believe an older adult is being financially exploited may report to any law enforcement or government agency information pertaining to the possible financial exploitation, fiduciary abuse or fraud without fear or criminal or civil liability.

This means if a financial advisor sees something suspect and decides to report it because they believe the person is being taken advantage, they can do so without fear of being sued if they’re wrong. This is especially important when dealing with suspected abuse of a power of attorney.

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2.       Private Cause of Action

Any older adult who is injured by an act of financial exploitation, or any person authorized to act on behalf of the older adult, may institute an action in the court of common pleas or any other court of competent jurisdiction for damages sustained by the older adult.

One of the most common problems with financial exploitation is the difficulty in going after the person at fault to get your money back. While some of the conduct is criminal, it can be intimidating and frustrating for seniors to deal with the police or the district attorney who may not have the time or resources to get a criminal conviction.

By creating a civil cause of action, victims could go to either the local magisterial district judge or the County Court of Common Pleas to file a lawsuit to get their money back. A civil action also lowers the standard of proof needed to a “preponderance of the evidence”, which is lawyer-speak for “more likely than not that it happened”. This lower standard will make it easier to catch con-artists and scammers who know how to go right up to the line of the law.

 

3.       Awarding of costs, attorney’s fees and punitive damages

If it is proven by a preponderance of the evidence that a person has engaged in financial exploitation, the court shall award reasonable attorney fees and costs to the older adult, in addition to compensatory damages and all other remedies otherwise provided by law. If it is proven by clear and convincing evidence that the financial exploitation was done willfully, wantonly or maliciously or was characterized by aggravating circumstances, the court may also award punitive damages to the older adult.

This provision is critical because many seniors, particularly those on a fixed income, cannot afford lawyers to take on these cases. By allowing the court to award legal fees to be paid by the person who exploited the older adult, it will open the door for victims to get the quality legal representation they deserve. And in cases where the exploitation was done willfully or maliciously, the victim would be entitled to punitive damages, which is basically ordering someone to pay a large amount of money to make an example of their bad conduct. This provision could really discourage scam artists from targeting senior citizens in the future.

 

4.       Older Adult Financial Exploitation Trust Fund

When someone commits a financial crime against an older adult, they would be required to pay an additional fine of $100 that would go into a Trust Fund specifically designed to assist older adults who are the victims of financial crimes.

Unfortunately, many of the seniors who are victims of financial crimes will never be able to recover the money that was taken from them. By establishing this Trust Fund, we are creating a way to lessen the financial burden on those victims.

House Bill 2057 will provide a strong set of tools for senior citizens who have been the victim of financial exploitation to fight back and recover their lost money, and send a serious message to criminals and scam artists that Pennsylvania cares about its older adult citizens. I plan on working hard in a bipartisan way to see that this bill becomes law, and I will be sure to keep you updated.

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