Transcripts For CSPAN Financial Exploitation Of Senior Citizens 20150209

Financial advisor. Financial exploitation of Older Americans is a growing epidemic that cost seniors an estimated twopoint 9 billion in 2010 according to the gao. In maine a long there are 14,000 new reports each year of senior abuse which includes financial exploitation and in as many as 90 of financial cases the seniors victimized by someone he or she knows well. Many of these cases the victim is too ashamed to report financial exploitation particularly when it involves a Family Member. As a consequence the true incidence of this kind of abuse is not known. Identifying victims of financial exploitation in my state is particularly difficult because we take a lot of pride in our selfsufficiency. Its difficult for many seniors to ask for help. In addition since victims who have had their assets stolen by Family Members typically do not want their relatives to be criminally prosecuted, the stolen money is rarely recovered. Combating Financial Abuse of seniors is primarily the responsibility of state and local agencies particularly Adult Protective Services agencies. Prevention and response to cases of abuse require coordinated efforts including state and local agencies, Law Enforcement, the social work and medical communities and Financial Institutions. The federal government also plays an Important Role in providing leadership to combat this problem. The Elder Justice Coordinating Council led by the department of health and Human Services has brought together 12 federal agencies to coordinate efforts to protect older individuals from abuse including financial exploitation. I also want to acknowledge the Critical Role played by state regulatory agencies and i am particularly pleased to welcome to our hearing judith shaw who served as securities administrator for the state of maine. Maine im happy to say is on the cuttingedge of helping to combat through programs like the innovative Senior Safe Program which is the first of its kind in the nation. I wont preempt her testimony by describing it but i think it provides a model for many states. Financial exploitation knows no socioeconomic boundaries. Victims range from seniors who have very modest financial means to those who have amassed great wealth. For example the daughter of the maine senior sold her mothers home and moved her into a camper into her backyard. As if that were not bad enough that daughter and her boyfriend went on to to please her mothers lifesaving life savings over the course of two years leaving her pending those as well as homeless. While individuals of limited means are particularly vulnerable even the wealthiest the most fortunate americans are not immune from financial exploitation. Today we will also hear from Philip Marshall who is the grandson of a wellknown philanthropist and socialite, brooke astor who summered in maine for decades and was so generous to our state. He will testify about how his father mistreated his mother and mismanaged her assets while she suffered from alzheimers. To be clear, there are many instances in which it is vital for a senior to have the assistance of a Family Member, friend or other trusted advisor to help manage his or her finances wisely and prudently, particularly if that senior becomes ill or loses cognitive ability. This is another factor that makes this issue so troubling and so complicated. I look forward to hearing from all of our witnesses today. We have a great panel about the efforts that are underway to address Financial Abuse of full marble seniors. I do want to also apologize to our panel that we are going to have a vote at 2 45. We will try to keep it going. Whoevers here will take over the gavel. Thats how trusting and bipartisan we are and we will try to make the interruptions as brief as possible. Senator mccaskill. Thank you senator collins. A year ago if i had been approached in the hallway by one of those pesky people with a microphone and i were asked if the democrats were to lose control of the senate and you were to take over as the Ranking Member of the very First Committee you could ever serve on as a Ranking Member who would you pick for your chairman . I would have said without hesitation my friend my mentor and my role model susan collins. She has been an example to me from the day that i arrived of courage and independence when it is called upon and of working across the aisle. I have watched her with senator lieberman and the Homeland Security committee when she was the Ranking Member, showed determination and toughness when she needed to but always willing to listen and cooperate when it was essential so im very proud to serve under chairman collins and i think we will have a terrific and productive committee looking at a very important issue in our country. The senior Senior Financial Exploitation is not new to any of us. As a prosecutor in kansas city i saw firsthand both horrific and heartbreaking instances of elder abuse physical, emotional and yes financial. Roughly one in five seniors will be a target of some form of financial exploitation to the tune of billions of dollars in losses each year. This hearing will focus on those cases with an additional conflicting factor. When the perpetrator is a Family Member, a trusted caretaker or a close friend or advisor. The numbers here dont really tell the story and thankfully we have several witnesses who can share firsthand the horrible excesses of this type of the abuse. Perpetrators are constantly developing new ways to gain access to our seniors life savings and focus upon a generation thats typically has been more trusting or with less willing to subreport. The victim is a Family Member however these become some of the most complex cases around. Often a Family Member is legally appointed as the guardian of assets. A victim of those around him a suspect what is happening but feel more powerless or ashamed to report. Often the victim will struggle with filing charges against a child or Family Member. Prosecution involves not only criminal action but civil action to potentially regain assets. Today i want to reiterate that we cannot shy away from holding these perpetrators accountable for their actions. The abuse and fraud perpetrated upon her seniors is unconscionable. Its a fairly recent come on and that we have to start started discussing these cases because for too long they were dismissed as Family Members. Today we will hear from page ulrey a seattle prosecutor specializes in elder abuse criminal cases and she will talk about a few of her college she has in this arena. Only a handful of offices in this country have an office like the one she works in king county washington and that is troubling. Financial exploitation cases involving the elderly are difficult to prosecute her we need competent and trained professionals at every level from the detectives and Mental Health professionals forensic accountants and of course trained investigators and prosecutors. Ms. Ulrey will share how shes trying to train people in your area and around the country. Last year she came to missouri to help develop ways to protect seniors in my state who suffer from cognitive impairments from the coming becoming victims of financial fraud. I must adjust the desperate need for increased cooperation at the federal state and local level and let me reiterate that because then she is the king county prosecutor i am sure she has her own stories to tell about the stems and about fights. Take it to the city prosecutor. Take it to the county prosecutor. Im not going to take this case its too complex to get to the u. S. Attorney. We must address this cooperation cooperation. There are those who say this is a state issue. Yes, it is but it is bigger than just a state issue. There is much the federal government can do better to assist in local prosecution of these cases. Jail cases. Gao founded in 2012 review this issue seven different federal agencies were working to solve this problem that were consistent with their own issues but not necessarily supportive of one another for the overall goal. Since that time these agencies have in fact begun to Work Together and i want to highlight the work of one of them on hand today. It Consumer Financial Protection Bureau providing guidance for Family Members and caregivers on how to respond to someone elses finances. My colleague senator warren is personally aware of the efforts of the cfpb in this area. They are still so much more we could be doing and are not. Reality is we dont have data of the scope of the problem. We dont know many cases are reported to adult Production Services nor do we know how many adult elderly cases are criminally prosecuted. I hope our witnesses can help us to examine how we have become more creative and assertive but firmly within our role in the federal government. I look forward to speaking with their witnesses about how we can start to eliminate aging discrimination and bias in our attitudes towards prosecution of these cases. Too often they are dismissed because they are difficult to prove easier to address as a civil matter or too complex especially when youre dealing with the mental capacity of the victim. My home state of missouri passed a law strengthening the definition of financial exploitation of seniors. I continue and tend to do everything to contain just for that effort. Thank you the chairman are witnesses for taking the time to be your day and i look forward to hearing your testimony. Thank you very much senator and thank you for your generous comments. I want to welcome to the committee a new member of thesenate. We are very happy to have you join us on the committee and welcome back to the committee this year senator warren of massachusetts. We are going to turn to our panel next in the interest of time. First we will be hearing from Philip Marshall who is a professor at Roger Williams university in rhode island. He will be speaking today as a Family Member of someone, brooke astor who i mentioned in my Opening Statement and we very much appreciate your willingness to come forward and share what i am sure is a deeply personal story. Next well hear from judith shaw who serves as the securities administrator in maine and is president elect of the north American Securities Administrators Association and International Organization devoted to investor protection. We will then hear from cap linklaen executive director of national Adult Protective Services association and finally last but certainly not least we will hear from page ulrey the Senior Deputy prosecutor in king county washington as senator mccaskill as already explained. Mr. Marshall thank you for being here. Chairman Collins Franky membership haskell distinguished Committee Members thank you for inviting me to testify today. Im so grateful for your leadership and action on issues of injustice. My name is Philip Marshall. Im a professor of rhode island and a resident of massachusetts and im also the grandson of new york philanthropist brooke astor victim of elder abuse by her son son, my father. As president of the Vincent Astor foundation my grandmother advance its mission by giving millions of dollars to social and cultural causes. In 1998 president bill clinton afforded her the president ial medal of freedom. Well into her 90s she was at center stage as new yorks first lady and a humanist aristocrat with a generous heart. By 2000 when she was 100 she disappeared from the limelight. She didnt return until july july 2006 when my guardianship petition which i filed to protect my grandmother against my father was discovered by the press. Front page headlines displayed disaster from mrs. Astor. My grandmother would never want to be known as one of americas most famous cases of elder abuse nor did she. In the throes of dementia to choose to be victimized to be deprived to manipulated and robbed all as part of a calculated scheme to defraud us later characterized by the Manhattan District Attorney at the sad circumstances surrounding my grandmother had informed a timeless cause in elder justice. This may be your greatest most lasting legacy. In my petition i stated my father with reference to his mother has turned a blind eye to her. Intentionally and repeatedly ignoring her Health Safety personal and household needs while enriching himself with millions of dollars. After three months and battle a settlement was reached with permanent guardianship awarded. My grandmother spent her final days in the Country House with care, comfort and free from fear. A criminal investigation was launched by the manhattan d. A. When a possible forgery was referred to as elder abuse. In 2009 after six months criminal trial my father was found guilty on 15 of 13 or 14 counts against him all but one held up on appeal. This was a bittersweet harvest yet this harvest has so nursed the cause of elder justice. Later charities were awarded tens of millions of dollars that my father decided to direct it himself. Because my grandmother now rest in peace i could resume my life as before but i realized to be complacent about elder justice is to be complicit in elder abuse. Since 2010 i launch my own journey for elder at justice beyond birth. Border to border coasttocoast facetoface with elder justice practitioners. I think thank them for doing so much for so many with so little. With help by successfully detected abuse and helps my grandmother. Many elders lacked vigilant oversight and remain helpless and hopeless. Here are all those providing services to Older Persons under federal programs should be screened and trained on elder abuse detection and resources for a response. In addition of bill protective Services Needs federal funding and support to respond adequately to increasing numbers of cases of elder abuse. While my grandmother galvanize a collective and coordinated response to some elders are revictimized by a fragmented system. Here much greater Financial Support an expansion a multidisciplinary teams would be so helpful. While my grandmother lived in a jurisdiction with an elected d. A. Who cared and how it in elder abuse unit most people dont. Others need to have Law Enforcement and prosecutors who are trained in elder abuse and will respond two and prosecute these cases. While my grandmothers stolen assets were proclaimed many others never reclaim their money or their lives. Enhance detection mandatory reporting and greater reporting of suspicious activities will still help. Financial monitoring must be matched, physical monitoring to ensure world elders wellbeing. Finally i urge congress to reauthorize the elder justice act and the Older Americans act. While elder abuse is a trend its not our destiny. Thank you. Thank you very much mr. Marshall for your very compelling testimony and your advocacy. Mrs. Astor was beloved in our state as well and did so much good throughout her life. Ms. Shaw. Thank you senator. Chairman Collins Franky membership haskell members of the committee on judith shah securities administrator and cochair of the main council for elder abuse prevention. Im also the president elect of the north American Securities Administrators Association although i am not testifying before the committee in that capacity today. I am honored to discuss one of the most Serious Problems facing our elderly financial exploitation and to present one approach currently and use in maine. Addressing Senior Financial Exploitation is difficult but critical. Many in our Elderly Population are vulnerable due to social isolation and distance from family and other support networks. The days of americans growing growing old and communities surrounded by generations of Family Members are fading. What do we know about this population . We know that older adults are often targets of financial fraud scams and exploitation in part because they have tangible assets including homes and pension streams that are attracted to scam artists. Older adults often retire and no longer accumulate health. One of financial fraud or exploitation occurs even seniors with significant savings have a limited ability to recoup their losses. This is a Community Problem that requires a holistic solution. We must all come together to weave a new safety net for our elderly, breaking down barriers and walls that have kept us from seeking achievable solutions. We must identify those were best positioned to determine red flags early on and encourage reporting referrals to appropriate government agencies. Where do we start . We discovered one of the most available resources to be our banks and Credit Unions. We partnered with mains Disability Services Legal Services for the elderly the main Bankers Association to develop senior safe. Senior safe was created to increase identification and reporting of elder financial exploitation specifically for Financial Institutions. Prior to developing senior safe main counsel for elder abuse prevention that with representatives from the banks and Credit Unions to identify barriers to reporting suspected cases of elder financial exploitation. What we learned was that the system lacks the feedback loop substitutions were often left wondering whether the customer had been assisted or if there was even a problem in the first place. Russell learned banks and Credit Unions lacked direction on what to do when red do when web sites identify. Senior safe is comprised of three components training to consumer brochure and Quick Response cards for frontline staff and managers of Financial Institutions. Frontline staff are trained to identify red flags for elder abuse and managers are provided with information to help them develop internal reporting protocols. Participants are advised to contact protective services when in doubt about a seniors capacity since aps is equipped to make that assistance. However theres no reason to believe the customers incapacitated the main office of securities has agreed to be the Second Agency except in reports and Referral Center senior safe. We received telephone calls from banks and Credit Unions and review the information to determine whether to investigate the case or refer it to another appropriate federal or state agency. The benefits of this type of reporting and referral system are farreaching. It leads to improve safety in the community for seniors and other customers of a financial institution. Proactive measures help promote goodwill in the community and affirm the commitment of institutions to their customers wellbeing and financial independence. All of this sounds wonderful but has not been affected. The answer is yes. The First Bank Employee training occurred and there were 2013 train by training for credit union personnel. Statistics do not tell the whole story and senior success. It describes several reallife examples including one of my own in iran testimony. The customer had no idea who the individual was and had not contracted with him. Aps was informed and is now caring for the victim who lost over 14,000 to the known scam artists in the note Family Member to care for her. The types of community in which we are grandparents or parents were raised are becoming less routine. We must Work Together to create a new safety net using every valuable resource available to us. Combating elder abuse and financial exploitation requires consistent education identification, reporting investigation and prosecution. Thank you for your attention and providing me with the opportunity to testify today. Id be happy to answer any questions. Thank you very much missed shot. Ms. Quinn. Madam chairman rank you membership haskell and Committee Members thank you for the honor of speaking to you today about the terrible problem of elder abuse. Im cap linkline director of the national Adult Protective Services association. A Membership Organization which helped found the Justice Coalition with a seal funding. We created the Advisory Board on elder financial exploitation on which im proud to say Philip Marshall served. Elder abuse is a huge expensive deadly problem but one that is largely invisible. One in 10 Older Persons which is about 5 Million People is maltreated twice the number combined number of child abuse and Domestic Violence victims. It kills. Victims are three times more likely to die the nonof these cohorts. Its expensive costing individuals their families Financial Institutions and taxpayers billions of dollars annually. Over 90 of reported elder abuses abuse is committed by the victims on Family Members especially their Adult Children and finally Financial Abuse go occurs often with physical and Emotional Abuse and neglect. Congress held first hearings on elder abuse in the 1970s but only recently thanks to the elder Justice Coalition fielder justice act the Justice Coordinating Council and this committee has any serious intention begun to be paid. We hope attention will continue and grow as federal investment in both child abuse and Domestic Violence work has resulted in significant reductions in the incidence rates of both problems. Ms. Quinn pardon me for interrupting. There are four minutes left in the vote and as my colleagues know i have never missed one and more than 18 years so im going to excuse myself. Senator gillibrand if you voted . You need to go also. Why do we take a brief break in the hearing. Senator mccaskill or senator scott who are both on their way when they get back will reset resume but they are on their way. Thank you. Thank you for your patience. Ms. Quinn i think you are in the middle of your opening comments. Would you like to continue . I thought maybe i got to start over. You certainly can. I will start at the beginning of paragraph. Congress held hearings on elder abuse in the 1970s but only recently thanks to the elder Justice Coalition and secretary greenlees leadership in acl and the Elder Justice Coordinating Council in no small part to this committee has any serious attention been paid to the issue. We hope that attention will continue and grow as federal investment in both child abuse and Domestic Violence work has resulted in significant reductions in the incident rates above. Older persons receive no direct support from our national government. Theres no dedicated funding for a psp only available statutorily office of a system for delta cannot protect themselves. The act passed in 2000 had its first for 4 million in 2015 to support us when the National Infrastructure but no funding for direct services. Im lighting it would shut down a pass in some states. Many of the Community Services necessary to keep victims at home. Financial exportation is generating reports complex and difficult to investigate perpetrated along with physical and Emotional Abuse and neglect but victims frequently lack cognitive capacity. Realtor agencies in 2013 issued guidance to clarify federal law does not prohibit reporting elder abuse but many banks will not provide aps with clients financial records which aps must have to substantiate the abuses occurring. Verifies federal guidance clarifying records may be shared with aps in a timely manner could be stopped earlier. I believe Financial Institutions would