Older adults often targets for financial exploitation
Older adults are often the targets of financial scams – usually through the phone or internet – but, officials say, they should also exercise caution when determining who will handle their affairs.
Over the summer in Fayette County, a woman was charged with more than 1,600 felony counts for allegedly stealing in excess of $690,000 from an elderly dementia patient over several years.
Police said the alleged victim gave Lisa Costolo, 58, of North Union Township, power of attorney in 2015. The alleged theft came to light when Costolo got behind on payments to the facility in which the alleged victim resided.
For sure, Costolo’s case is a unique one, said Sarah Gustine, the protective unit services unit supervisor for the Southwestern Pennsylvania Area Agency of Aging. Among reported instances of fraud and abuse, power of attorney cases are “pretty slim.”
No matter the situation, said Gustine, if someone believes they’re a victim of fraud, the agency will assist with resources and referrals for legal help. And, if the situation warrants it, they will escalate the case to law enforcement.
Scottdale-based attorney Kevin Henderson prepares wills, trusts and powers of attorney at his practice.
According to Henderson, prior to any client designating a power of attorney, there are discussions about whether the arrangement is in their best interest.
“What we always go over: The person they are nominating to be the agent, is it the best person for the job they want to do? Is there a backup person if that person can’t do it? Do you really need it at all?” Henderson said.
In most cases, it is typically the client’s children or another relative who would take on the responsibilities.
“If it’s a person outside of the family, that usually raises a couple of red flags for us,” Henderson said.
Even if an arrangement appears questionable, clients ultimately make their own decisions about whether to sign the paperwork so long as they are mentally competent.
Very rarely has Henderson ever refused someone seeking to turn over power of attorney.
“There are occasions where I’ve declined to proceed. Not many, but one or two cases over 20 years where I declined to do it over those concerns,” Henderson said.
Washington County District Attorney Jason Walsh said it’s important to make sure you trust the person you are signing legal rights away to.
Fayette County District Attorney Mike Aubele said at the time of Costolo’s arrest, the alleged victim did not have family to assist her. Uniontown Healthcare and Rehabilitation Center, where she was staying, were not alerted to the potential fraud until February 2020. The woman died July 27, 2021.
Aubele described the alleged victim as being unable to manage her own affairs toward the end of her life, and believed her parents were alive and helping with money. It highlights the difficulty prosecuting these cases of financial exploitation.
“It all depends on what the condition is that leads to the power of attorney. Some people still have control of their faculties, and can review statements. If they can do that, they should be aware of that at all times. If not, then it is difficult to police until after the fact,” Walsh said.
Costolo is currently scheduled to appear for a preliminary hearing at 1:30 p.m. Oct. 15.
When it comes to scams, Gustine says “romance scams” cause the most monetary loss to older adults. Typically using the internet, scammers will use a false persona to form a relationship with the victim.
“It depends on the person’s situation. If they don’t have family around, they tend to get in those situations,” Gustine said.
To help combat this type of fraud, Walsh makes regular trips to senior centers in Washington County to make sure people are aware of the latest scams and what red flags to look out for. The focus is on prevention, as Walsh points out these scammers are usually operating overseas, making them very difficult to prosecute.
People are encouraged to never purchase gift cards or otherwise give money to people over the phone. Sometimes scammers will pose as a family member, in which case Walsh says to hang up and contact that relative directly. Information that is publicly available on social media profiles can also be used against victims.
“People don’t realize they put so much of their personal information out there,” Walsh said. “People who troll the internet all day, they can accumulate that information.”