"identifying financial exploitation and protecting assets" by

Identifying Financial ExploitationIdentifying Financial Exploitation& Protecting Assets& Protecting Assets

Separating the Wheat from the ChaffSeparating the Wheat from the Chaff

Presented byPresented by

Roger CoventryRoger Coventry

Financial Exploitation InvestigatorFinancial Exploitation Investigator

Maricopa County Public FiduciaryMaricopa County Public Fiduciary

Training ObjectivesTraining Objectives

Be able to locate pertinent account Be able to locate pertinent account informationinformation

Be able to highlight “red flag” Be able to highlight “red flag” transactionstransactions

Be able to identify “at risk” assets Be able to identify “at risk” assets and take steps to protect themand take steps to protect them

I don’t even balance my own checkbook…I don’t even balance my own checkbook…

How am I going to detect financial How am I going to detect financial exploitation?exploitation?

DefinitionsDefinitions

ExploitationExploitation financial abuse of individuals by the repeated improper or

illegal use of their assets. taking unfair advantage of an adult's financial resources for

another individual's personal or financial advantage by the use of undue influence, coercion, harassment, duress, deception,

false representation or false pretense by a caretaker. . Fiduciary AbuseFiduciary Abuse

a situation in which any person who is the caretaker of, or who stands in a position of trust to, an adult, takes, secretes, or appropriates their money or property, to any use or purpose not in the due and lawful execution of such person's trust.

What Are the Signs of What Are the Signs of Financial Exploitation?Financial Exploitation?

THEFT AHEAD

FORGERY Right 3 Miles

EXTORTION Next Left

Exhibiting disparity between income, assets and lifestyle

Behaviors and Conditions That Behaviors and Conditions That Indicate Financial ExploitationIndicate Financial Exploitation

Exploiter works here part-time Yet...

Unexplained, or sudden inability to pay bills, purchase food, or personal care items


Inaccurate, confused, or no knowledge of finances


Fear or anxiety when discussing finances


Unprecedented transfer of assets from an older person to others



Extraordinary interest by family member of older person’s assets

Where Do I Find The Evidence?Where Do I Find The Evidence?

It is in the financial documents!

Financial Documents Include...Financial Documents Include...

Bank Statements Contracts Wills Codicils to Wills Trusts Deeds / Deeds of Trust

Financial Documents Include...Financial Documents Include...

Stock / Bond Certificates Promissory Notes Tax Returns Titles Power of Attorney Insurance Policies

Where Do You Begin?Where Do You Begin?

Examine each Statement and Examine each Statement and Highlight the Following:Highlight the Following:

Account Ownership Listing of other accounts Opening Balances Deposits Transfers Name(s) added to accounts

Look for Red FlagsLook for Red Flags

Red FlagsRed Flags Elder adds friend or relative to Elder adds friend or relative to

account as “joint” account holder account as “joint” account holder

Red FlagsRed Flags Sudden Changes in Account ActivitySudden Changes in Account Activity

Red FlagsRed Flags Numerous transfers between accountsNumerous transfers between accounts

Red FlagsRed Flags

Multiple “cash-back” transactions

Numerous, large cash / ATM withdrawals

Red FlagsRed Flags Late payment of utility and other bills

Note: This victim had paid her utilities by automatic withdrawal

Red FlagsRed Flags

Unusual purchasesUnusual purchases

Red FlagsRed Flags Checks written as “loans” or “gifts”Checks written as “loans” or “gifts”

5,000

Fyve Thowsend

Thanks for the Gift!!!

Nicole Thomas

Examine Checkbooks and Examine Checkbooks and Registers For:Registers For:

Check register(s) written in consistently colored ink

Checks written out of order Checks missing from the back of

check book(s) Checks that only have the signature

in the hand-writing of the owner

Check For Documentation of Check For Documentation of Other Suspect ActivityOther Suspect Activity

Checks written to persons (not business names) for services

Checks orders sent to a P.O. box Checking and other accounts that

only list the elders social security number for tax reporting

Establish What Would be Establish What Would be Considered “Normal” Account Considered “Normal” Account

ActivityActivity

Is there a history of overdrafts? Did the Elder use ATMs / debit cards? Was there a line of credit established

prior to the suspected exploitation? Had the line of credit been used?

Systematic ApproachSystematic ApproachMONTH CASH/ATM HIGH BAL.

JAN $20.00 $88,558.00

FEB $0.00 $89,886.37

MAR $0.00 $91,234.67

APR $100.00 $92,503.19

MAY $300.00 $93,490.73

JUN $1,800.00 $92,693.09

JUL $5,000.00 $86,883.49

AUG $7,500.00 $73,486.74

SEP $8,500.00 $51,389.04

OCT $9,650.00 $19,309.88

NOV $13,000.00 $6,599.53

DEC $18,000.00 -$8.15

TOTALS $63,870.00 N / A

Exploiter Realizes “This is easy money”

Expect to see overdrafts and transfers

Create Simple

Spreadsheets for Each Account

for Year-over-Year

Comparison

Asset Protection / PreservationAsset Protection / Preservation

Change locks / keys

Account Restrictions

Asset Collection (Close Accounts)

Asset Protection / PreservationAsset Protection / Preservation

POA Revocation

Secure Vehicle

FREQUENTLY ASKED FREQUENTLY ASKED QUESTIONSQUESTIONS

Q: Q: How can we obtain financial records / documents?How can we obtain financial records / documents?

A: A.R.S. §46-454(E) provides the authority, upon the written request of a peace officer or APS A: A.R.S. §46-454(E) provides the authority, upon the written request of a peace officer or APS worker investigating exploitation, to secure original or copies of medical or financial records. No worker investigating exploitation, to secure original or copies of medical or financial records. No subpoena is necessary.subpoena is necessary.

You can also secure financial documents from the home of the person you suspect is being You can also secure financial documents from the home of the person you suspect is being exploited. It is suggested to get as much documentary evidence as you can, then sort it later. exploited. It is suggested to get as much documentary evidence as you can, then sort it later. Make good copies and return the originals to the source.Make good copies and return the originals to the source.

Note:Note: Consult your department protocol. Consult your department protocol.


Q: Q: What if the financial documents are incomplete or do not have What if the financial documents are incomplete or do not have details of the transactions?details of the transactions?

A: When requesting financial documents from any institution ask for “the A: When requesting financial documents from any institution ask for “the most detailed” statements available.most detailed” statements available.

Remember:Remember: The “Big Picture” will probably give you enough The “Big Picture” will probably give you enough information to determine if there has been financial exploitation.information to determine if there has been financial exploitation.

Q: Q: How do I know if checks were written by someone other than How do I know if checks were written by someone other than the owner of the account?the owner of the account?

A: Try to secure various handwriting samples from sources within the A: Try to secure various handwriting samples from sources within the victim’s residence. These can be used as evidence and for victim’s residence. These can be used as evidence and for comparison to a suspect’s handwriting. Secure samples of the comparison to a suspect’s handwriting. Secure samples of the suspects handwriting, if available. suspects handwriting, if available.


Q: Q: Is Financial Exploitation just a “Civil” matter?Is Financial Exploitation just a “Civil” matter?

A: Not in most cases. There are usually several criminal violations that could A: Not in most cases. There are usually several criminal violations that could be charged in association with most financial exploitations.be charged in association with most financial exploitations.

Note:Note: Under A.R.S. §46-454, you have the duty to report (make a criminal Under A.R.S. §46-454, you have the duty to report (make a criminal complaint) even if someone tells you that it is not a criminal matter.complaint) even if someone tells you that it is not a criminal matter.

Q: Q: Does a Power of Attorney exempt the exploiter from criminal Does a Power of Attorney exempt the exploiter from criminal or civil liability?or civil liability?

A: A: No. Just the opposite! No. Just the opposite! Under A.R.S. §14-5506 (A) an attorney in Under A.R.S. §14-5506 (A) an attorney in fact must act solely for the benefit of the principal. Any actions that fact must act solely for the benefit of the principal. Any actions that are taken that are not solely for the benefit of the principal must be are taken that are not solely for the benefit of the principal must be specifically identified by the power of attorney and be separately specifically identified by the power of attorney and be separately initialed by the principal and the witness at the time of execution of initialed by the principal and the witness at the time of execution of the instrument. A.R.S. §14-5506 (B). the instrument. A.R.S. §14-5506 (B).


Q: Q: The care giver simply asked for money to help pay for her daughters The care giver simply asked for money to help pay for her daughters “emergency surgery.” Is that a crime?“emergency surgery.” Is that a crime?

A: I could be. Did the care giver ask repeatedly? Did they ask in such a way as to make A: I could be. Did the care giver ask repeatedly? Did they ask in such a way as to make the elder person believe that they would be responsible for the daughters the elder person believe that they would be responsible for the daughters complications if the surgery was not done soon? Did the care giver intimidate or complications if the surgery was not done soon? Did the care giver intimidate or badger the elder?badger the elder?

46-456. Duty to an incapacitated or vulnerable adult; financial

exploitation;... (B.) A person who is in a position of trust and confidence and who by intimidation

or deception knowingly takes control, title, use or management of an incapacitated or vulnerable adult's asset or property with the intent to permanently deprive that person of the asset or property is guilty of theft as provided in section 13-1802.

RESOURCESRESOURCES

http://www.crimes-of-persuasion.com/index.htm

Crimes of Persuasion.Com

http://www.usss.treas.gov/financial_crimes.shtml

U.S. Secret Service

http://all.net/cybercop/pointers.html

Listing of On-line Crime-fighting Resources

http://www.ckfraud.org/

The National Check Fraud Center

RESOURCESRESOURCES

http://bonds.yahoo.com/glossary1.htmlBond Glossary

http://www.investorwords.com/

Investor Glossary

http://www.nysscpa.org/terminologyguide/main.htmAccounting Glossary

RESOURCESRESOURCES

Jacque Humphreys--Asst.. Vice President, Wells Fargo BankInvestigative Services Department(520) 792-5333

Michael Lawler--Assistant Vice President, Bank OneInvestigations Project Manager(602) 221-4850

Don Thomas--Vice President, National Bank of ArizonaSecurity / Fraud Manager(602) 212-5529

"identifying financial exploitation and protecting assets" by

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