Podcast Summary: Combatting Elder Financial Abuse

Podcast: ACTEC Trust & Estate Talk
Episode Date: December 10, 2024
Host: Travis Hayes (ACTEC Fellow)
Guests:

• Julia Meister (ACTEC Fellow, Cincinnati, OH)
• Charles Golbert (Public Guardian, Cook County, IL)

Episode Overview

This episode tackles the widespread and growing problem of elder financial abuse, an underreported crime affecting millions of seniors and vulnerable adults each year. Travis Hayes introduces the topic, referencing national statistics, and hosts Julia Meister in an in-depth conversation with Charles Golbert. Charles shares both the scale of the issue and the actions his office takes (notably, a financial recovery litigation program), while offering real-life case studies and insights into legal collaboration, attorney misconduct, and preventative strategies.

Key Discussion Points & Insights

1. The Scope & Reality of Elder Financial Abuse

• Financial Impact: Seniors lose approximately $36.5 billion per year to financial abuse (00:36).
• Underreporting Problem: The vast majority (87.5%) of cases go unreported, per the 2023 AARP study (00:36).
• Local Observation: Charles Golbert’s experience as Public Guardian for Cook County closely parallels the national data (02:25).
  • About half of new cases involve some abuse or exploitation.
  • About 40% of all cases involve specific financial exploitation.

“The national statistics that Travis cited are definitely consistent with what our office is seeing.”
— Charles Golbert (02:25)

2. The Financial Recovery Program: Structure & Success

• Program Established: The Cook County Public Guardian’s office created an innovative financial recovery program (02:46).
• Team: Staffed by three senior lawyers focused exclusively on litigation to recover assets stolen before guardianship.
• Outcomes:
  • Over 15 years: 160+ cases litigated, more than $50 million recovered for clients (02:54).
  • Among the largest financial recovery efforts of its kind in the U.S.
• Awareness: Media coverage (local, national, and even international) helps increase public attention to these crimes.

“We’ve recovered more than $50 million. That’s five, zero, million dollars on behalf of the people under our guardianship.”
— Charles Golbert (02:54)

3. Case Study: Grace Watanabe

(Begin: 04:00)

• Background: Ms. Watanabe, a frugal and disciplined former civil servant, accumulated ~$1 million in savings. With dementia in her 90s, she became a victim of severe exploitation by nursing staff at her care facility, Symphony.
• Details of Abuse: Staff wrote checks to themselves totaling ~$750,000.
  • The theft continued undetected until the bank detected unusual activity, but only after most funds were gone.
• Legal Action & Community Support:
  • The Public Guardian’s office became her guardian, moved her to safety, and sued the individuals and the care facility.
  • The Japanese American community rallied, attending hearings and providing support—even after her death.
• Outcome: Ms. Watanabe passed away at 100, but funds were recovered for her chosen charities.

“...she developed dementia in her 90s. But when she got dementia, the staff there started to plunder her savings...and they stole about $750,000, almost all of her life savings.”
— Charles Golbert (04:16)

“Every single court case, even if it was just an agreed continuance, dozens of people from the Japanese American community showed up to show their support.”
— Charles Golbert (05:19)

4. Collaboration with Law Enforcement

(Begin: 07:00)

• Dual Approach: Full justice requires both civil recovery and criminal prosecution.
• Public Guardian’s Role: Provides thorough documentation and evidence to law enforcement.
• Law Enforcement Gaps: Often slow or reluctant to prosecute—even with complete evidence packages.
• Media Pressure: Public pressure (press conferences, publicity) sometimes pushes authorities to act.
  • Example: In Watanabe’s case, charges were filed only after a press conference.

“...sometimes law enforcement’s not as aggressive about these cases as we would like to see it be.”
— Charles Golbert (07:45)

5. Attorney Misconduct as a Vector of Abuse

(Begin: 08:17)

• Frequency: Nearly one-quarter of financial exploitation cases involved misconduct by lawyers; in some, the attorney was the direct perpetrator.
• Four Main Malpractice Patterns:
  1. Misidentifying the true client.
  2. Ignoring signs of diminished capacity or undue influence.
  3. Facilitating fiduciary theft.
  4. Failing to protect cognitively impaired clients in settlements.
• Reporting: In all qualifying cases, lawyers are reported to the state disciplinary authorities.

“The lawyer’s malfeasance enabled exploiters to use the lawyer’s documents...to steal from the individual.”
— Charles Golbert (09:10)

6. Case Studies: Lawyer-Related Exploitation

(Begin: 10:31)

a) “Jane” — The Isolated Devotee

• Situation: Elderly woman (94), advanced dementia, trusted priest, isolation.
• Fraud: Priest arranged for lawyer to draft trust, transferring her house and assets to himself—lawyer met only with priest, not Jane.
• Pattern: Lawyer had done similar documents for at least three other clients with dementia.
• Outcome: Documents invalidated, most money recovered, lawyer suspended.

b) “Gene” — The Paralyzed Victim

• Situation: Paralyzed man (75), coworker manipulates lawyer into drafting documents granting herself property and financial control.
• Fraud: Coworker uses power of attorney to steal $133,000 and tries to evict Gene.
• Community Role: Neighbors intervene, alerting authorities.
• Outcome: Home deed restored to Gene, partial funds recovered from lawyer’s malpractice insurance, lawyer disciplined.

Notable Quotes & Memorable Moments

• “It’s a crime that we need to understand and be on the watch for.”
  — Travis Hayes (00:36)

• “In fact, about half of all of our new intake cases have at least some issues of abuse or neglect or financial exploitation.”
  — Charles Golbert (02:32)

• “The lawyer never met with Jane in doing so, the lawyer only met with the priest...and we also reported the lawyer to the Illinois disciplinary authorities, and he was suspended.”
  — Charles Golbert (11:06, describing lawyer’s unethical facilitation of theft)

• “We try to use our financial recovery practice to call attention to and raise public awareness of this problem.”
  — Charles Golbert (03:38)

Timestamps for Key Segments

| Segment | Time | |--------------------------------------------|----------------| | The scope and cost of elder abuse | 00:36–01:28 | | Office of Public Guardian’s financial recovery program | 02:25–03:54 | | Case study: Grace Watanabe | 04:00–07:00 | | Working with law enforcement | 07:00–08:17 | | Attorney misconduct in elder exploitation | 08:17–10:24 | | Detailed lawyer-related case studies | 10:31–13:42 |

Overall Tone and Final Reflections

This episode maintains an urgent, pragmatic, and empathetic tone—highlighting both the enormity of elder financial abuse and the pivotal role of legal professionals in identification, prevention, and recovery. The discussion blends legal acumen with personal stories, underscoring the human impact and systemic gaps that enable exploitation, especially when attorneys are complicit. The message is clear: vigilance, proactive litigation, and collaboration with law enforcement and the community are essential tools in safeguarding vulnerable seniors.