FraudJournal Blog

October 10, 2011

Calling All Detectives…Elder Exploitation Really is a Crime


First, I want it on the record that this posting is about one or two individuals who felt elder exploitation was not a crime, but rather a family matter. Whether or not they thought about their response in detail it still makes one wonder just the same; what are you thinking?

I have been assisting from time to time on a particular elder financial exploitation case, where the children are exploiting their mother. And here is the kicker. We are having trouble getting the detective to accept the case because this is a family matter and law enforcement are about catching and putting the bad guys in jail; not resolving family matters. This individual was sure elder exploitation was a crime to prosecute. The prosecuting attorney who is willing to take the case, can only wait until a detective processes the case and forwards the case for prosecution. And now once again, another elder exploitation case is pending. Pending a detective to accept the case and apply the necessary due diligence to present the case to the prosecuting attorney.

Now in defense of law enforcement, their fraud case backlog is huge. And I really do mean its a big problem. The people needed to process the cases, with the right skill sets, are few and far between. Funding is next to nothing, all cases are prioritized for the level of community threat, and frankly, elder exploitation is not sexy. Unless there appears to be a possible hastened death situation, their priority is child abuse, murder, rape and the war-on-drugs.

Having said this, let me explain some items that you might not know. First, before any case can get to court, it must first receive a case number from the police department that has jurisdiction in the case. This how it gets tracked, noted, filed and if necessary transferred to the proper jurisdictions. No case number, no detective to process, no litigation.  But I digress, the issue is that the detective felt there isn’t  new laws that make it a crime to exploit an elderly person. It was a family matter to be litigated privately. This individual was also surprised to find out that in WA, there recent changes to state law which gives law enforcement and attorneys the ability to better prosecute for elder exploitation and abuse. This means even if there is not, law enforcement are now able to check in on a vulnerable adult and if necessary, take steps to insure their safety from potential harm whether financial or physical.

The recent set of economic setbacks to all local, county and state agencies has greatly reduced the number of qualified staff able to work the high case load. I understand why the fraud case loads are continuing to back up and that they are as frustrated as the rest of us that there is not enough time in a day to process these cases. I and my fellow fraud fighters understand that public servants need to keep the rapists, murderers and drugs off the streets, but I am concerned that I continue to hear from my colleagues this type of response from veteran detectives/law enforcement officers. Really? This is really how you feel?

I am willing to consider that these few individuals were not thinking clearly; that maybe that cup of coffee was not fully loaded with enough caffeine to engage critical thinking. But this response tends to come from older and more experienced law enforcement personnel, and this concerns me. Why? Because they the men and women that the younger professionals are watching and learning from as they strive for excellence to become viable law enforcement professionals.

As the “Boomer” generation continues to age, their level of vulnerability is going to grow exponentially. This means that they are prey for healthcare fraud, ID theft and of course, abuse and exploitation from friends and family.And they are going to need all of our help.

So my challenge to all of you who continue in the fight against fraud and abuse… please help our law enforcement officers & detectives to believe that elder abuse and exploitation is really a crime worth punishing. That the next vulnerable adult they investigate may be the relative of a friend or neighbor; that they just  might save someone from loosing their home and quite possibly their life.

Thank you for listening.

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March 26, 2011

Potential for Elder Fraud on the Horizon


Hello Everyone. I know its been awhile. Today I would like to share concerns from various conversations with others in the elder care community. This group includes tax preparers, CPA’s, business litigators, caregivers, senior care facilities (both assisted living residential and commercial), and health care workers, and fraud investigators. Why?

Well, as most of you have heard that the number our seniors that have aging parents now needing to place them into assisted care and skilled nursing homes and facilities are increasing. Most locations have been able to accommodate the ebb and flow of family and friends seeking help for their aging parents, spouses, partners and family members. Recently I was visiting an assisted living facility and the executive director commented that he no longer has rooms for the growing number of requests he receives on a daily basis. In fact, he now has had to create a waiting list without any way of assuring the families of a time frame when their loved one can be cared for by skilled staff and in a safe environment.

Which brings me to the next point. Due to the huge and I mean that quite literally, huge upcoming increase in senior/elder care needs, locating affordable and qualified care will be in high demand. This creates a large pool of vulnerable adults open to be preyed upon by the fraudsters in the health care field. This includes medical billing, quality care and safe environments where abuse is not tolerated or able to take place, qualified and vetted personnel (as in proper background checks and monitored activity), not to mention reasonable costs for the care received.

One women in a caregiver support group was aghast when she found out that a facility wanted to charge her a very large administration fee, first and last months space/care fee, a cleaning deposit, and a slush fund for small care needs. This amounted to over $10,000 up front for the first month of care. Most families can barely cover the costs of taking time off to care for a loved one let alone the initial upfront costs to begin care. This was a residential home that was set up to care for six elderly residents, and was part of an LLC that included six other homes just like it. There are many of these homes that work very hard to take very good care of their residents. But this home was not well maintained and the individuals that ran the home allowed family members to come and go and hang around as if it was a normal family home, served only their ethnic foods and was not keeping up the care on the home. This was very disconcerting to the woman and she did remove her mother from the home and chosen to take care of her herself. Which is what many are choosing to do because the costs end up meeting the same as the income they were trying to earn in the first place.

Now, having said this, I know for a fact that a qualified care facility with little turn-over and properly maintained premises is not cheap. Paying the staff what they deserve for the hard work, and think about it, it is hard work otherwise we would not have the need for these types of residential and commercial care locations, are key to running a safe and clean environment. Familiarity or routine is key to helping the elderly feel safe and willing to participate in the care they need. One director told me it takes close to $2000 per new employee to get them properly trained at the level he felt was key to providing the care expected for the fees charged and to remain in compliance with state laws and regulations.

Which brings the next point. There are no standards for care and costs regarding taking care of our elderly citizens aside from the currently established medical and government codes and regulations on running a business or medical practice. That puts the burden on the family to research, vet out and locate places they can both afford and feel their loved ones are safe. This also means they are relying on the homes and facilities to do their ‘due-diligence’ regarding their personnel and policy and procedures.

So here is my final point – the biggest potential for fraud is that the needs will over run the availability of qualified personnel to care and monitor our vulnerable adults. Recent economic conditions create a situation ripe for fraudsters to prey on the elderly either directly or through their caregivers as everyone gets stretched beyond their limits. So here are some ideas that I would like the fraud community to spark conversations on to build a grassroots approach to keeping our loved ones safe and out of harms way.

First, educate as many of those around you on what elder abuse looks like and who and where to report it. Each local city/county has an organization to connect you to the resources available. Second, if you know of someone you think is being targeted or IS unsafe, please reach out to the local law enforcement and ask for them to check in and verify all is well. They have access to governmental agencies for support. Third, ask questions if you need answers regarding the cognitive skill level of our seniors. Early signs may be there and steps need to be taken so they do not become pray to neighbors, family, and other commercial entities looking for easy targets. This includes those of you working in banks and stores.

Now for financial exploitation – this is going to be a very serious situation in the next years ahead. The generation of seniors that are now reaching increased levels of dementia were raised during a time when they understood they needed prepare for retirement. This means most of them have squirreled away some sort of funding to cover their final years. These savings have become an easy target for family, neighbors, and I am sorry to say fellow members of religious organizations to zero in on for support. Befriending the elderly can be easy because they believe in giving people the benefit of the doubt, which means most of them if they are lonely, and they usually are, end up trapped before they know and then have no means to reach out in time to protect themselves from the leeches they have welcomed into their homes and life. Not to mention, if they are in a state of dementia they will not remember what they recently did or agreed to at the time they were parted from their financial future.

Here are some sites to research and get your selves prepared to protect our seniors from harm:

http://helpguide.org/mental/elder_abuse_physical_emotional_sexual_neglect.htm

http://ctwatchdog.com/category/finance/elder-care

http://www.ncea.aoa.gov/ncearoot/Main_Site/index.aspx

http://www.apa.org/pi/aging/resources/guides/elder-abuse.aspx

http://www.calbankers.com/post/preventing-elder-financial-exploitation-how-banks-can-help

http://www.elderangels.com/

http://www.elderangels.com/

 

November 8, 2010

Fraud Victims – When Do They Get Their Day In Court?


I have recently received several responses from victims of fraud asking what it takes to get their cases heard in court. Their plea for help is painful to hear and all of us that investigate and work fraud cases understand that this is not  a small problem, that it is part of a bigger picture. So how do we answer these cries for justice when the there are so many obstacles to overcome?  Let’s talk about the obstacles in getting cases to court.

THE MANY FACES OF FRAUD

Fraud comes in as many forms and is committed by as types of perpetrators as you can imagine. Unless the perpetrators are strung-out drug addicts, they look just like you and me. They are our neighbors, friends, family members and business partners as well as con-artists out looking for a ‘mark’ or victim. They are rarely like the characters pictured in CSI, NCIS and other crime shows. And the timing from start of a case to asking the questions, getting the information and forensic reports back, getting the proper warrants and subpoena’s to get the fraudsters booked takes place is in not hours or days, but months of hard work and focus. Many investigators go out of their way to help fraud victims, but these are not the stories we hear about. This is especially true in elder abuse and exploitation cases, and crimes against children.

WHY DO THEY SAY THEY CAN’T HELP ME?

First, the levels of creativity and focus by fraudsters is undeniably surprising. Most of us that are in the trenches regularly mumble to ourselves that if fraudsters could focus their attention and creative problem solving skills towards the problems of humanity, we may just solve some serious world problems. But they don’t and have all day and lots of connections to find latest, greatest and often complex methods to get ahead of the rest of us. This means the battle to catch and try them involves constant learning, adapting current skill sets and gaining access to new technology. Ask any government office which version of software or hardware they are using and they hang their head and sigh.

The economy has not helped this situation at all. Most law enforcement departments are being hit with increased demands to process fraud cases, but are trying work them without an increase in manpower. I have heard some detectives have an ongoing case load of 15 cases on their desk at one time, and it’s growing. I recently spoke at a conference for law enforcement training about forensic accounting to give them the necessary steps to get ahead of the curve and understand the information they have to process in order to properly document and forward their cases to prosecution. It’s a start, but it’s costly and what ever money that is left over in the budgets is being funneled to keep the lights turned on.

That does not mean they are totally in the dark either. Most government agencies, offices and law enforcement personnel have begun to team up to go after fraudsters. The days of jurisdiction issues is coming to a close. Technology is allowing quick and efficient means of shared information. But it is starting in the areas of better funding and this means not all law agencies are going to be at the same level of technology and manpower. This also means it is going to take more than a village to catch a thief; it’s going to take counties, states and a nation to effect change. And don’t forget you the public. When the public cries out for justice; there is nothing more powerful than a grassroots movement to tell both politician and government that they are not happy with the situation on hand.

BUT I DID EVERYTHING TO HELP THEM AS ASKED!!!

In fraud cases, the victims are required to prove they are victims. This is because there are no physical signs that are tangible proof that a crime has occurred. A rape, murder or sexual assault has tangible evidence that can be processed and documented. But in financial crimes, evidence needs to be documented and verified by professionals. Officers of the law including detectives have not been trained (up until recent years) to work financial crimes. This is added training on top of their required training to physically and mentally deal with their original daily tasks. This is why they ask for victims to provide as complete and documented a case as possible. They are required to verify all that you provide before they can move it forward.

Recently, law enforcement agencies are starting to establish a ‘fraud department’. Most often this new department is manned by a detective or officer that is interested in financial crimes. This also means that funds now must be shared with a new department and all personnel must be educated on the protocol for financial crimes. This is not an easy task and can take a while to get all the necessary technology, training and directives in place. But I am seeing changes and the successes are getting noticed. Hopefully this will show the way for other agencies to begin changes necessary to take cases and move them up the system for prosecution.

YOUR DAY IN COURT

I wish I could say all victims will get their day in court. The courts are inundated by cases. Prosecutors are also overwhelmed. And anytime you involve professional experts, the process can get lengthened based on the complexity and level of detail the expert needs to present to educate judge and jury of the facts. Most jurors do not have any background on fraud or accounting for that matter, and the details need to be exact, simple to understand, and relevant; meaning no rambling on about debits and credits.

It is also expensive to take a case to court. The costs can be more overwhelming than the loss in some cases, and sometimes it destroys the victim more than the fraudster. But that doesn’t mean that prosecutor’s don’t want to take the cases or that detectives don’t want to process the cases. The bottom line lately, is just that. Time and costs are continuing to be obstacles. But again, steps are being taken to make change. In larger areas of population, both law enforcement and government agencies are collaborating on education and establishing standards of protocol to handle fraud cases. This is KEY to bring the necessary change and produce results. Nothing can happen without all agencies and personnel being on the same page to fight crime and provide its citizens the personal rights of safety and freedom from abuse.

YOUR COMMUNITY NEEDS YOU

Having said that, it is also up to the public to report crimes and to hold their own accountable. Often, fraudsters are able to move about society freely because they have been protected by those close by them, or because victims have not reported their crimes. As scary as it sounds, if you don’t file a report, it doesn’t get on the books and into the system. Often law enforcement will check with each other and if they find out they are familiar with that name or their system pulls up that name (even if they were not convicted), the officers have a suspect with a possible fraud pattern. It adds bite to their efforts to stop the thief.  And, there is nothing worse to hear than other victims come forward after the fact, when the fraudster could have been stopped years ago. In order to truly stop criminal fraud, there has to be a grass-roots effort. This includes to understand where the line of ethics and moral standards begins. This includes setting examples at home and work that casual theft, aggressive behavior, and entitlement are not acceptable in our society.

IN CONCLUSION

I realize this is a lengthy post. But I felt it necessary to let those that follow my blog and are victims of fraud, that we do hear the cries of frustration, anger and resentment. That we know there are cases not being handled as quickly, and sometimes, at all. And that what they hear are more than excuses; that there are real obstacles that are being hurdled as we speak, and that change is coming. We are all part of this problem and it will take all of us to resolve it. The public needs to send a message that entitlement is not a right or excuse to take another’s property or livelihood. That is comes with penalties. That as a whole, we the public, in this nation will not tolerate such behavior and empower those dedicated to detect, deter  and defend against perpetrators of fraud, the funding, manpower, and tools needed to protect and take care of our fellow citizens.

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