Summary - Highlights - Solutions

SUMMARY

As of 1986, I have a mother and father living in a two story home. XX (my brother the thief) is renting and working in the city. I'm flying around New England.

In 1987, my father passes away.

My mother is doing just fine on her own until 2001. My mother decides to sell the family home (can no longer handle stairs). Proceeds go into a new home for her and XX (she'll live downstairs). Both names are on the deed (house worth over $500K) and XX takes a mortgage on the balance.

Also in 2001, I move my family about two hours away.

In 2001 she nearly dies due to respiratory arrest. She slowly recovers. XX probably starts opening her mail and writing checks from her account to pay her bills.

Over the next several years, my mothers health deteriorates. She's hospitalized again for respiratory arrest. Her vision is suffering due to macular degeneration.

Also during these years, XX gets into debt. I have no idea why or how much. All I know is one or more debt collectors are after him (phone calls to mothers phone, notes on car wiper, personal appearances and of course mail).

About 2006, he's going with some guy. Maybe it's early 2007 they break-up. I think the other guy's involved.

Oct 2006 - my mothers accounts are frozen by debt collectors because XX was also on the accounts. She clears it up, and opens new accounts without his name. Meanwhile, his own accounts are probably frozen as well and he may not have accounts now. As time goes on (my mother becoming blind), XX will start paying his bills from her account. He signs her name on checks.

Dec 2006 - I deposit $15K into my moms savings account from stocks I found (from my father).

July 2007 - XX in hospital with mysterious heart problem. Almost kills him. I'm appointed Power of Attorney for my mother. I don't worry about XX because he can only access the small amount of money passing through her checking account. From here on, my mother is blind. XX is opening all her mail, writing out checks (signing her name) and using her credit and ATM cards.

Also in July, with him in the hospital, I'm able to see a credit card statement and I don't like what I see (buying things for himself, carrying a balance & paying interest and paying late fees). I lower the credit limit from $17,700 to $4,000 to prevent further damage.

Early 2009 - three financial institutions that my mother uses merge together (banking, insurance and credit card). With a new ATM card, XX has access to my mothers savings account.

July 2009? - I discover XX has an alias name (AKA Tom Crown).

Aug 2009 - I discover $4K has disappeared from her savings in a few months. I close the account.

Aug 2009 - I come face to face with Dr.Jekyll and Mr. Hyde. Due to concern for my mothers well-being (and my safety), I give the money from the closed account back, depositing into her checking account. I also open a new credit card to replace one I closed.

Oct 2009 - her account is missing money. I estimate that a minimum of $15K is missing and the actual figure is probably well over $20K. I discover he has at least $30K in court judgments outstanding. I'm informed his drivers license is suspended and he has a new one using the alias Tom Crown.

Nov 2009-based on discussions with the bank and my mother, I discovered that my mother does NOT have her debit card in her possession. She THINKS she has it, but in fact it's a credit card. XX has the debit card.

Nov 2009-XX now making mortgage payments from her account. As of  22 Nov 09, her account is missing anywhere from $19K to $43K (depending on how I calculate her spending). She's now down to $5,500.

Dec 2009-XX is searching for me on the internet. Will not agree to have a lawyer re-work the will & deed so we split things as my mother intends.

Dec 2009- just to recap, I tried telling the following people, and I bombed out:New York City Police, FBI, Chase Bank, Adult Protective Services, MetLife, Wachovia Bank.

Dec 29-Discovered he's (likely) a drug addict and buying the drugs in Jersey City. She's down to $1,016. He has stolen in the neighborhood of $43K.

Jan 2010 - after tracking a long and late night journey,  I believe he's transporting drugs and/or money between various locations involving Jersey City, Bayonne and Staten Island. Still can't confirm anything, but something big is going on involving a lot of people.

Jan 19 - She's down to $51.

February 24th  - She's down to ($647); that's negative $647.

April 22, 2010 - mother-in-law dies.

May 17, 2010 - My mom dies.

June 14, 2010  - XX hasn't been paying the mortgage. Account is now in the hands of a law firm that deals with foreclosure. My parents money going down the toilet.

June 30, 2010  - XX dies.

HIGHLIGHTS

XX is probably a drug addict and trafficking drugs and money
XX will not let me pay the bills. He will not sit down for all of us to talk.
XX and mother (now deceased) are both on the deed (house worth over $500K).
XX opens her mail.
XX can't pay bills on time. Cable and electricity have both been been shut down at least once.
XX is signing her name to her checks, some made to cash.
XX is freely using her credit and ATM cards (he has her debit card always, but she thinks she has it. He fooled her.)
XX is paying his bills (including mortgage as of Nov 09), some exorbitant in my opinion, from her account.
XX has an alias name, used to fraudulently obtain a new drivers license and perhaps other government ID's/financial accounts.
XX is driving with a suspended license. Someone should pull the records/photos from EZpass.
XX may have used his position as a credit officer (financial/insurance company)  to steal or use another persons identity.
XX is pursued by debt collectors and a New York City Marshal.
XX has at least $30K in judgments against him.
XX may have mental illness, perhaps bipolar or he's affected by drugs/medication. In any event, he's unstable (my opinion).
XX house in foreclosure

QUESTIONS and OBSERVATIONS

Here's some problems people in my predicament have to face:

-parent won't press charges
--fear of retribution
--feeling of guilt to send a child to jail
--feeling of guilt that the thief may lose his/her job
--maybe depends on the thief
--simply incompetent
-lack of evidence
--the abuse may be obvious, but getting proof is difficult
-fear of alerting authorities
--what if the thief is free to harass, terrorize or harm the reporter
--all accounts will be disrupted. They'll need to be closed and new ones opened.
--fear that the family may turn against the reporter and/or believe the reporter is after money for themselves
-fear of taking action as Power of Attorney
--the reality that closing accounts & redirecting mail will make the thief very angry and the parent will be caught in the crossfire.
--the situation is more difficult when the thief lives with the parent. An angry thief can make life miserable for the parent, who is simply trapped.
--it's possible the Power of Attorney will feel guilty causing the thief to lose his/her job and/or go to jail


SOLUTIONS

It must be understood that:

1) Elder financial abuse is a form of identity theft.
2) An elderly person may not be aware someone is stealing from them.
3) An elderly person may be reluctant to report theft or suspicious financial activities.
4) An elderly person may be reluctant to assist authorities in the apprehension and conviction of the thief.
5) An elderly person may be financially and/or mentally incompetent.
6) a Power of Attorney may also be reluctant to report theft or suspicious financial activities.
7) for both the elderly victim and the Power of Attorney, the fear of retribution from the
thief is real (especially if the thief is a drug addict or involved in other criminal behavior).
8) A Power of Attorney may be a thief.

New Procedures for banks and businesses:

A) Bank procedures to be implemented if an elderly person does not opt out OR has appointed a Power of Attorney.

1) Automatic bill pay can be set up only through a personal meeting with a bank representative (not online). The bank representative must be alert to suspicious activity. The bill or bills to be paid must be in the name of the account holder (the elder). If a fixed payment amount changes, the new amount must be furnished to a bank representative. This provision prevents a thief from paying his/her own bills from the elders accounts.

2) Outside companies/businesses can no longer directly debit bank accounts and credit cards. The elder or Power of Attorney MUST write a check. This provision prevents the thief from establishing accounts (such as cable TV or Ezpass) using the elders bank accounts with service charges being paid by the elder without the elders knowledge and/or consent. If the thief is the Power of Attorney, this leaves a paper trail.

3) The signature on checks and deposits MUST match a signature on file at the bank or on the Power of Attorney documents. This provision prevents the forging of elders checks and cashing/depositing checks made payable to the elder. Theft will be limited to the Power of Attorney.

4) ATM withdrawals must be limited to either a historical average or set by the elder (perhaps $200 in any seven day period). To withdraw any additional monies shall require meeting a bank representative. This provision limits an easy and common method of theft. It will also slow the rate of theft.

5) Checks made out to cash from the elders account are NOT allowed. This provision prevents an easy and common method of theft.

6) A check from the elders account can NOT be used to pay the bill of another person. This provision prevents a thief from paying his/her own bills from the elders account.

7) Credit card and debit card purchases MUST have a signature match. NO use of PIN allowed. This provision prevents anyone other than the account holder from using the credit/debit card.

8) The use of a credit card and/or a debit card for a purchase utilizing the internet, telephone or mail is NOT permitted; elder must write a check. This provision prevents the thief from making a purchase using those cards.

9) When an adult parent (of any age) enters into a real estate transaction with his/her child, a lawyer must inquire as to the wishes (in the will) of the parent. If the lawyer determines the parent wants property divided, then they must structure the deed so that can happen OR the parent should disburse any funds (inheritance) at the time. This provision prevents the elder from unknowingly giving all their money to the thief through a deed.

B) The procedures outlined in part A above are always in effect when a surviving spouse aged 65 years old or older appoints a power of attorney. Opt out is not available.

1) After the Power of Attorney document is signed, the lawyer or notary public WILL send a copy to:

1a) US Post Office. Elders mail is then re-directed to the Power of Attorney.
1b) Credit reporting agencies; to be watchful.
1c) Banks in order to implement the procedures outlined in Part A above. 1d) Businesses and service providers which the elder uses.

C) Unless the elder opts out, the procedures outlines in Part A above take effect at age 65.

D) Opt out procedures (only when there is no Power of Attorney)

1a) The elder MAY opt out during the calendar month prior to their 65th birthday and one calendar month prior to subsequent birthdays.
1b) The option to opt out automatically expires on the elders following birthday. The elder may again opt out up to one month prior to his/her next birthday.
1c) To opt out requires meeting with a representative where the elder banks or an attorney. Several copies of an official and signed opt-out document with a raised seal will be provided to the elder. That document can be provided by the elder to businesses and financial institutions to prove they have opted out and the procedures in Part A above are not required. The opt-out document and provisions expire on the elders next birthday.
1d) The elder can opt in at any time without meeting a bank representative.
1e) The elder is NOT permitted to opt out if a Power of Attorney is appointed.

Additionally:

1) Banks shall provide training to employees to recognize indicators of financial abuse.
2) Banks must be alert to a sudden and dramatic change in transactions and/or phone inquiries.
3) Banks must maintain records of all activity on suspected accounts including photos from ATM transactions.
4) Police shall have officers specially trained to review any reports of suspected financial abuse.
5) If a Power of Attorney has been appointed, he/she MUST make a quarterly report or accounting of transactions to a third party (lawyer, accountant or bank). The third party may require more frequent reports. The Power of Attorney MUST keep receipts for all purchase as well as cash and ATM transactions.
6) ANYONE should be able to contact authorities if they suspect an elderly person is the victim of financial abuse. Tips can be anonymous. Law enforcement WILL investigate any reports of suspected financial abuse.

NOW SOME QUESTIONS & COMMENTS

I'm sure the bank would be very unhappy to hear he's signing her checks. I'm not sure what would happen if they pulled the ATM tapes. What about all the recent transactions at other banks? It's as if he's trying to be evasive.

The bank tells me she has only one card. XX has it at all times and uses it without her express authorization. I know this because when she needs money, she gives him what she thinks is her debit card (a decoy; it's a credit card). She tells me he returns and gives the card back. Therefore, all other transactions are illegal.

When she dies, the house is his ($500K+). It wouldn't surprise me if someone puts a lien on it.

In my state, since he's living in the same house with her, doesn't he need his own insurance? I doubt he has any. I think he's driving around thinking he's OK as my mother has auto insurance.

Would the IRS be interested in the money he's spending like it's his?

Can XX get fired from his job? He told the hospice nurse he's a credit officer. Wouldn't that give him access to sensitive information? Could he be an identity thief? Did he use his position to create his alias? His supervisor might be interested.

Does the use of the alias name suggest criminal activity? How does one get an alias? What if he used it to obtain a government ID?