ATTORNEY NEWSLETTER
Misuse of Financial Power of Attorney
$400,000 Allegedly Taken From 87-Year-Old Victim
Remedies For Victims
Financial powers of attorney (POAs) are important legal instruments that grant full legal authority over a person’s financial affairs, unless the POA expressly limits the appointed agent’s power in some way. The scope of the appointed attorney-in-fact’s powers is set by law and, unless specifically limited, extends to almost every form of financial transaction. See Cal. Prob. Code § 4401 (statutory form for financial POA). (There are also medical powers of attorney, known as Advance Health Care Directives, which are also powerful legal instruments and are also governed by statute. Cal. Prob Code § 4701) The potential for abuse of the broad powers granted under powers of attorney is always present. Misuse of a POA abuse includes outright theft of the principal’s money or property and, in a broader sense, making any decision or taking any action that is not in the donor’s best interest. The burden of making decisions for a principal is a heavy one, even for the most trustworthy attorney-in-fact. For that reason, we recommend you appoint two trusted individuals as agents under any POA to act jointly. We also recommend that you never, ever, grant a Power of Attorney to a caregiver. Caregivers and others can wield their POA power to change a principal’s entire estate plan and redirect the principal’s assets to themselves. If an agent has misused a POA to your or an older loved one’s detriment in Santa Clara County call us at (415)441-8669 or toll free at 1-888-50EVANS (888-503-8267).
Case Example
In one reported case*, a man faces multiple charges for allegedly exploiting a vulnerable adult for his own financial gains. The case started last year when the arrested man is accused of fraudulently obtaining legal power of attorney from the victim – an 87-year-old man. The man is accused of diverting more than $400,000 from the man toward his own personal benefit and to the benefit of a purported non-profit he controlled, according to police. The man has been charged with four counts of embezzlement from a vulnerable adult, $100,000 or more, and one count of fraudulently obtaining a signature. Charges are still pending.
Remedies For Victims
In addition to possible criminal consequences, misuse of a POA is grounds for civil liability of twice any amounts taken and attorneys’ fees for the victim. Probate Code § 4231.5. Where the principal is over age 65 or a dependent person (as the principal in the reported case), the misuse also constitutes criminal and civil financial elder or dependent adult abuse under California law. Penal Code § 368; Cal. Welf. & Inst. Code § 15610.30. Agents who wrongfully take the property of seniors are responsible not only for twice the amount taken under the Probate Code but also, under the Elder Abuse Act, enhanced damages. Both the Probate Code and the Elder Abuse Act grant the injured senior attorneys’ fees and expenses incurred in suing to get their property back. Probate Code § 4231.5(c); Cal. Welf. & Inst. Code § 15657.5. In addition to straightforward theft, California law also prohibits an agent from designating beneficiaries or creating future (or survivorship) interests in the principal’s property unless specifically authorized to do so in a POA. Cal. Prob. Code § 4264. The agent is strictly prohibited from making or revoking the principal’s Will. Cal. Prob. Code § 4265.
Contact Us
Ingrid M. Evans can represent you if an agent has misused a Power of Attorney granted by you or an older loved one in Santa Clara County. If you need help, call us today at 415-441-8669 or toll free at 1-888-50EVANS (888-503-8267).or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Ingrid will pursue all remedies available against the agent, including attorneys’ fees and expenses for the older person required to bring an action based on the agent’s wrongful conduct.
- Evans Law Firm, Inc. was not involved in the case in any way.
