Minnesota Elder Fraud Lawyer
Whenever someone is tasked with overseeing another person’s finances, they leave themselves vulnerable to allegations of misuse, fiscal irresponsibility, outright theft, and elder abuse. Elder abuse doesn’t necessarily mean physical or emotional abuse. Financial abuse can often be just as devastating. Minnesota refers to this type of abuse as financial exploitation of vulnerable adults. It covers not just the elderly, but also others who are physically or mentally incapable of caring for themselves.
Though elder abuse is certainly a real issue, many are wrongfully accused of committing elder abuse in Minnesota.
When the other party is a family member, things can quickly become ugly due to jealousy, greed, and misplaced feelings of entitlement.
Minnesota Elder Fraud
There have been several cases of alleged elder abuse involving claims of theft and fraud in Minnesota recently that have made headlines. Earlier this month, a man in St. Paul was accused of elder fraud. Specifically, he was charged with financial exploitation of a vulnerable adult. Authorities allege the man used his elderly mother’s funds to the tune of $700,000 for items like home improvements on his own home and plastic surgery procedures for his wife. The man had been acting as his mother’s POA since 2011 because she was suffering from dementia. He was given broad freedoms as her POA but was still required to “act in good faith”.
Some other current news stories related to elder abuse can be found here.
Power of Attorney
It is important that you have legal documents in place in the event that someone has asked you to handle their personal and financial affairs. Documents should clearly state the scope of your authority and the specifics of what the other party expects from you.
If you are asked to act as someone’s power of attorney especially in a financial capacity, it is critical that you have an attorney review the POA documents and ensure that both you (the agent) and the other party (the principal) are protected.
Banks and other financial institutions should be given copies of these documents so that they are aware that you have been authorized to access and distribute funds on the account holder’s behalf. If the POA includes a medical authorization, then all treating physicians and providers should also be given copies so they are aware of what type of decisions you have been delegated to make for the other person.
An Ounce of Prevention: Recordkeeping
Keeping detailed records of all money spent and financial transactions which you were a party to can save you headaches down the road. Make certain to keep your money separate from the principal’s money. Don’t combine funds or deposit money from their account into yours without a legitimate reason to do so and without backup documentation.
Being less than diligent can open you up to accusations from outside parties and make it more difficult to prove your acting with the consent and authority of the principal.
For those who have been appointed guardians or conservators, Minnesota has an online reporting application (MMC) that must be utilized for annual accounting and inventory matters.
Misuse of Funds
Depending on the scope of the POA, your actions may be called into question.
Agents acting as Power of Attorneys are entitled to be reimbursed for expenses related to their duties as POA. Great care must be taken to make sure that receipts are available if requested to back up any funds paid out as reimbursement. You may use your cell phone, personal vehicle, and computer for tasks related to your position as POA. However, it would not be prudent to request reimbursement for the total cost of those items or services. It would be acceptable to ask for reimbursement of the portion of those bills equal to the percentage of use of that item related to POA business.
It is not permitted to use the principal’s money for your own personal expenses.
Financial Exploitation
Minnesota statute 609.2335 deals with crimes of Financial Exploitation of a Vulnerable Adult. The legal definition of a vulnerable adult is as follows:
(a) “Vulnerable adult” means any person 18 years of age or older who:
(1) is a resident or inpatient of a facility;
(2) receives services required to be licensed under chapter 245A, except that a person receiving outpatient services for treatment of chemical dependency or mental illness, or one who is served in the Minnesota sex offender program on a court-hold order for commitment, or is committed as a sexual psychopathic personality or as a sexually dangerous person under chapter 253B, is not considered a vulnerable adult unless the person meets the requirements of clause (4);
(3) receives services from a home care provider required to be licensed under sections 144A.43 to 144A.482; or from a person or organization that offers, provides, or arranges for personal care assistance services under the medical assistance program as authorized under section 256B.0625, subdivision 19a, 256B.0651, 256B.0653, 256B.0654, 256B.0659, or 256B.85; or
(4) regardless of residence or whether any type of service is received, possesses a physical or mental infirmity or other physical, mental, or emotional dysfunction: …
Some actions considered criminal under this statute are as follows:
- failing to use money or real property belonging to the vulnerable adult to provide them with food, shelter, clothing, or healthcare
- using the property or money of a vulnerable adult for someone other than the vulnerable adult
- depriving the vulnerable adult of their property or money
- coercing, harassing or threatening a vulnerable adult in order to benefit another party
- using force or duress to acquire financial control over vulnerable adult’s property
Minneapolis Elder Abuse Defense Attorney
If you or someone you know has been accused of an elder abuse crime in Minnesota, you should contact us immediately. You will need to act quickly to protect yourself and prepare your defense. There are serious consequences of being found guilty of elder abuse crimes in Minnesota. We have the resources and experience necessary to mount an aggressive and effective defense against these types of charges. You are in excellent hands with the DeVore Law Office.
Posted 3rd January 2019 by DeVore Criminal Defense