DUNDEE – As part of her work protecting the safety and well-being of our state's seniors, State Representative Kathy Angerer (D-Dundee) today unveiled the Elder Financial Protection Act, a plan that cracks down on criminals who financially exploit seniors for their own gain.
"As people get older, they often rely on people close to them to handle their finances – and unfortunately, that can leave them open to being victimized," Angerer said. "This plan is about taking action to protect Michigan residents who have worked hard all their lives and are now being exploited by so-called caregivers."
Elder abuse ranges from abandonment and neglect to financial exploitation to emotional, physical or sexual abuse. Caregiver neglect comprised 20 percent of substantiated reports, according to a report from the National Center on Elder Abuse. Financial exploitation was the culprit in 15 percent of elder abuse cases.
Angerer, who chairs the House Health Policy Committee, is committed to protecting Michigan's most vulnerable residents. In October, Angerer joined forces with workers and citizen groups to fight back against the attempt by the private equity firm Carlyle Group to gobble up 27 Michigan nursing homes, a move that would put seniors' and disabled citizens' lives at risk. A New York Times investigation has found that nursing homes acquired by private equity firms committed more federal safety and health violations and incurred more federal and state fines.
"Wall Street has no place running roughshod over Main Street so wealthy firms can boost profit margins at the expense of Michigan's seniors – and this new elder abuse plan is another way I am fighting to protect our seniors from exploitation," Angerer said. "Our grandparents, parents and neighbors have contributed so much to their communities over the years. It's important that we take comprehensive measures to guard against those that seek to victimize seniors, whether it's nursing homes that aren't held accountable for their actions or predatory family members."
The Elder Financial Protection Act unveiled today would:
- Make it mandatory for employees of financial institutions to report suspected elder abuse.
- Require financial institutions to provide joint accountholders with a written summary of their rights.
- Prohibit those convicted of elder abuse from inheriting from a victim's estate, and create an Elder Death Review Team to investigate suspicious deaths.
- Allow a third party to file a criminal complaint on behalf of a victim of elder abuse.
- Define financial exploitation as it relates to the Michigan Social Welfare Act.
- Define the rights of those who are incapacitated.
- Require a person who is granted power of attorney on behalf of a senior to sign a contract that details the person's obligations and fiduciary duty to act in the senior's best interest.
Michigan's Adult Protective Services investigated more than 9,300 cases of adult mistreatment in 2001, according to the National Center on Elder Abuse (NCEA). Adults age 60 and older accounted for 69 percent of the victims – an estimated 6,479 seniors. The investigations found that 70 percent of all victims suffered neglect and 15 percent were abused.
A 2004 survey of all 50 states conducted by the NCEA found that women are more likely than men to suffer from elder abuse or neglect, with two out of three elder abuse victims being women. The survey also found that two in five victims were age 80 or older. The same report found that 17 percent of elder abuse cases involved members of the victim's family.
In one case reported in the NCEA's 2004 survey , a 93-year-old woman's granddaughter moved into her house with her boyfriend, under the guise of offering caregiver assistance in exchange for free housing. The younger woman convinced her grandmother to add her name to the checking account. A bank teller at the older woman's bank noticed irregular account activity and reported it to Adult Protective Services. An investigation showed that the younger woman had become physically abusive toward her grandmother, pushing her down a flight of stairs. Authorities also learned that she had tried to get her grandmother to sign over the deed to the house.
"Predators should not be able to profit off their victim's estate once they have died, " Angerer said. "By blocking attempts by abusers to inherent from their victims' estate, this plan safeguards our seniors from being financially exploited."