Raising Cane
By Rob Perez
Sunday, September 30, 2001
THEY LOSE their homes. They lose their money. They lose face. Many of Hawaii's senior citizens are being ripped off -- sometimes in what appear to be legal ways. The wealth they've accumulated over decades is siphoned away, spent by thieves on drugs, gambling, fancy cars, delinquent bills. Greedy opportunists
leave elderly destituteThe victims are being exploited financially in what has become one of the fastest-growing problems involving Hawaii's elderly.
Sadly, the perpetrators usually are part of the family. An adult son or daughter, an adult grandchild, a caregiver.
These heartless souls exploit the trust of their elder victims, who often are isolated from other family and friends and vulnerable to undue influence. In some cases the victims' mental capacities are too diminished for them to realize they are being victimized.
The stories of financial abuse are mind boggling. How, one wonders, can people stoop to such levels?
>> An elderly Manoa woman hires a caregiver, who moves into the woman's home. Soon the caregiver's boyfriend takes up residence there, too. Before long the home is transferred into the caregiver's name. The young couple host big parties at the house and take the woman's jewelry. Eventually they force the elderly woman to move out.
>> The adult daughter of a 70-something retired engineer takes over management of her father's finances. The daughter, owner of an Oahu real estate business, has her father's $350,000 home transferred into her name. She also invests much of his savings into an ill-fated scheme that eventually saddles him with $40,000 in back taxes and fines. His daughter evicts him from the house, and he ends up having to live with friends, his life savings depleted.
>> An adult daughter persuades her 80-something parent to give her power of attorney. Once she gets it, she transfers the parent's Oahu home into her name, sells the house and "literally leaves the parent on the street," said Randal Lee, the city's senior deputy prosecuting attorney.
Such cases are not out of the ordinary here, according to advocates for the elderly.
In fact, elder abuse cases of all kinds -- physical, emotional, financial -- have become serious problems in Hawaii, with the latter probably the most common, advocates say.
If the state's economy continues to sour in the wake of the Sept. 11 terrorist attacks, the problem of elder abuse is expected to worsen.
Rather than resorting to risky, dangerous crimes, people needing money will increasingly target elder relatives and find ways to quietly siphon off their assets, presumably with much less risk. The practice already is happening with alarming frequency.
"The money no longer is in bank robberies," said James Pietsch, a University of Hawaii associate law professor and head of the UH Elder Law Program. "It's in the elderly."
No one knows for sure how widespread the financial exploitation problem is in Hawaii. The several dozen cases that the state's Adult Protective Services investigates each year deal only with dependent adults, or those with a mental or physical impairment. But many elderly residents who don't have such impairments fall victim to financial exploitation.
What's more, the problem is vastly underreported, according to advocates for the elderly.
A victim who is aware of the abuse often is reluctant to pursue criminal or civil charges or even report the problem to authorities. Embarrassment and shame play a part. Fear can be a factor, too.
Pietsch recalled the case of an elderly woman who feared she would be killed if she complained to police about her drug-abusing relative, who had taken over her house.
"She was terrified for her life," Pietsch said.
Even if authorities are notified, proving a criminal offense can be difficult. Often the elder parent has signed documents giving the family member authority to act on behalf of the parent. With that authority, the family member can have the parent's assets transferred to him or her, and the transactions appear to be perfectly legal.
TO PURSUE a criminal case, authorities have to prove the initial documents were signed under duress or coercion -- a tough legal threshold, according to Marilyn Seely, director of the Executive Office on Aging.
Such an approach can raise difficult legal issues. After all, there is no law preventing someone from making foolish decisions about one's wealth.
"Yes, it may be exploitation," said Pietsch, the law professor. "But is it criminal? That's real hard to figure out."
There's also the family factor.
"A lot of the elderly don't want to get their children in trouble," said David Tanaka, supervisor of Adult Protective Services.
Partly because of such obstacles, prosecution of financial abuse cases involving family members is extremely rare in Hawaii.
The state Attorney General's Office has prosecuted only one in recent years. And the city prosecutor's office has not had any, although Lee said two are under investigation, including the one involving the daughter whose parent ended up homeless.
In the state case, William L. Hill pleaded guilty to stealing roughly $25,000 of his father's Social Security and pension funds. The money was earmarked for the father's nursing home care.
Hill was sentenced in April to five years' probation and ordered to pay restitution.
Even if the state economy doesn't sputter, the problem of financial abuse is expected to grow as Hawaii's elderly population continues to rise and more adult children are entrusted with the care of their parents.
Many of those parents own homes with little or no debt and have investment portfolios, presenting tempting targets for an adult son or daughter needing to finance a drug habit or pay mounting bills.
Some advocates say the state doesn't put enough of a priority on protecting the elderly.
Lee said Hawaii laws aren't tough enough to deter theft cases. He believes anyone convicted of crimes against the elderly should face mandatory prison terms.
Under current law, however, someone who steals even millions of dollars could be placed on probation and not have to serve any jail time.
That's not nearly harsh enough for those who target Hawaii's oldest residents, especially when the victims end up destitute and on the street.
Preventing abuse
Here are tips for the elderly:>> Avoid isolation. Surround yourself with trusted family, friends and advisors.
>> Track your assets, and be mindful of changes you didn't initiate.
>> Safeguard your credit cards, checkbooks and bank cards.
>> Use direct deposits for Social Security, pension and other income.
>> Be careful when using joint accounts.
>> Develop a plan for managing your assets if you become unable to manage them yourself.
>> Contact authorities if you suspect a problem. Don't be ashamed if you become a victim.
Source: UH Elder Law Program
Star-Bulletin columnist Rob Perez writes on issues
and events affecting Hawaii. Fax 529-4750, or write to
Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210,
Honolulu 96813. He can also be reached
by e-mail at: rperez@starbulletin.com.
