Irving L. Faught, Administrator

Oklahoma Department of Securities

September 17, 2013

Bring Your Smart Phones and Tablets

ELDER INVESTMENT FRAUD AND

FINANCIAL EXPLOITATION

Case Management Society of America – Oklahoma2013 Educational Conference

GETTING TO KNOW YOU• Who do you work for?

• Hospital

• Workers Comp

• Insurance Company

• Department of Human Service

• Department of Veterans Affairs

• More than one

• Other

GETTING TO KNOW YOU• What is your primary employment field?

• Case Manager

• Nurse or Nurse Practitioner

• Social Worker

• Psychologist

• More than one

• Other

GETTING TO KNOW YOU• Have you come across financial exploitation in your practice?

• Yes

• No

• Maybe

GETTING TO KNOW YOU• Have you ever reported financial exploitation?

• Yes

• No

GETTING TO KNOW YOU• Where would you report financial exploitation?

• To you supervisor

• Adult Protective Services

• Department of Human Services

• Police

• None of the above

GETTING TO KNOW YOU• Is financial exploitation of “vulnerable” adults a crime?

• Yes

• No

• Maybe

GETTING TO KNOW YOU• Does a patient’s financial health impact the patient’s overall health?

• Yes

• No

• Maybe

GETTING TO KNOW YOU• Is elder financial fraud elder abuse?

• Yes

• No

• Maybe

GETTING TO KNOW YOU• Are you required to report elder financial fraud?

• Yes

• No

• Maybe

PURPOSE OF THIS PRESENTATION

• Awareness of Elder Fraud

• Your Take Away

• Relevance

• Reporting

• Resources

• Remedies

RELEVANCE• Who do you think is effected by financial fraud?

• Persons with wealth

• Stock Market Investors

• Retirees

• Greedy individuals

• All of the above

• 1 out of 5 persons over 65 have already been victimized by elder financial fraud (7.3 mi llion).

• Elder population is growing and financial losses impact many aspects of the elder person life including the ability to purchase:

• Health

• Medicine

• Food

• Housing and

• Medical services

• 1 out of 5 health care professionals are aware they are often dealing with elderly victims of financial fraud.

RELEVANCE

ELDER INVESTMENT FRAUD

CASE STUDY

• Mr. Ladd is an 83 year old man who lacks financial capacity due to Mild Cognitive Impairment (MCI). Mr. Ladd has involved his son Charlie in some financial decisions. While Mr. Ladd is a conservative investor, Charlie likes to take risks. He invests a large portion of his father’s retirement funds in a risky stock. Soon afterwards, the stock falls dramatically. Out of embarrassment, Charlie doesn’t tell his father what he has done.

Is this fraud?

CASE STUDY

• Mrs. Angelotti is an 86-year-old recent widow. Her daughter, Mae, hires a care caregiver, Jennifer, to help around the house. Mae notices that Jennifer is acquiring lots of new things. Then Mae discovers she cannot access her mother’s accounts anymore. She visits her mother; Jennifer is no where to be found.

• Jennifer had unduly influences Mrs. Angelotti into signing a durable power of attorney. She then depleted Mrs. Angelotti’s retirement funds. Once Mae realized what was happening, Jennifer took what was left of Mrs. Angelotti’s savings and fled.

Is this fraud?

ELDER PATIENTS ARE MORE VULNERABLE TO FINANCIAL FRAUD• A large number of Oklahoma Department of Securities cases involve elder fraud.

• Example:

• AARP mailings were used by a company to set up trusts for elders. Once the company obtained financial information from the elderly victims they would sell the elderly victim an investment that allegedly guaranteed a 10-20% risk free return.

• Elderly Investors invested all of their retirement savings and lost everything.

• The results of the scam on elderly investors include:

• Not being able to afford medical care

• Having to move in with their adult children

• Having to return to work, and

• Having a stroke due to the stress of the financial loss.

• Con-Man

• Care-giver

• Family Friend

• New Acquaintance

• Cold Caller

• Financial Expert

• Counselor

• Family Member

• Community or Church Member

• Broker/Dealer agents

• Registered Investment Adviser

• Insurance Agents

• Securities Issuers

WHO COMMITS FINANCIAL FRAUD

Registered / Licensed Individuals Unregistered Individuals

RELEVANCE• Do you think that financial abuse of the elderly is relevant to your profession?

• Yes

• No

SENIORS NEED HELP IN REPORTING FINANCIAL FRAUD• Seniors are often unable to protect themselves

• Caregivers/family members can be the perpetrators of the fraud

• The victim most likely will not want to get this individual into trouble

• The victim may be in a nursing home

• You may be the only person that can help the victim

REPORTING• Would you feel comfortable asking your patients about their money matters?

• Yes

• No

REPORTING• Would your patients feel comfortable discussing their money matters with you?

• Yes

• No

• Maybe

Oklahoma Securities Commission

We are the state agency responsible for regulating the offer and sell of investments in the state of Oklahoma.

www.securities.ok.gov

Website has information on matters we have discussed today

Click icon to add picture

REPORTING FINANCIAL FRAUD

Elderly Client Medical Professional

• Contact ODS at (405) 280-7755

• Go to our website, www.securities.ok.gov, and fill out a complaint form

• Engage private counsel

• Contact ODS at (405) 280-7755 and report suspected fraud

• Confidential

• Leave message with concerns and name of potential victim

• Request a complaint form

REPORTING• Would you feel comfortable reporting suspected elder financial abuse using a secure,

confidential hotline number?

• Yes

• No

REPORTING• Why would you not feel comfortable reporting suspected elder financial abuse using a

secure confidential hotline number?

• Concerns about legal liability

• May cause more harm to the patient

• Do not want to get involved

• My supervisor will not allow me to report

RESOURCES

• Invest Ed® is your source of investor protection in Oklahoma.

Click icon to add pictureAll materials are free

at

www.investedok.org

Invest Ed®

Senior Resources

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Pocket Guide

REMEDIES

TYPES OF ODS ACTIONS

• Administrative

• Civil

• Criminal Referrals

QUESTIONS• Has this presentation raised your awareness about elder financial abuse and the need to

report?

• Yes

• No

• If your answer is no, what suggested changes would you recommend?

QUESTIONS• If you feel your elderly patient is being financially abused would you report it to ODS?

• Yes

• No

• If your answer is no, please explain.

QUESTIONS FOR US????