Avoiding Elder Financial Abuse

A recent San Francisco Chronicle article tells the story of Geraldine Clark, a wealthy nonagenarian who was defrauded by her caregivers for more than $4 million.

Geraldine Clark had always been frugal. She lived in a rent-controlled San Francisco apartment and through savings and wise investments, amassed approximately $5 million by her 80's; the interest and dividends should have been more than enough to cover her monthly expenses, including round-the clock caregivers. So why did her family receive a call in October 2022 that there was under $200 left in their aunt's investment accounts?

When Clark and her partner William Clement needed care, they opted to use a referral agency, which places caregivers for direct employment with the client, rather than a licensed, bonded, and insured home care agency. This choice was in line with their frugal lifestyles, as directly employing caregivers can cost 25-40% less than what a licensed agency charges. However, the rate of $30/hour that Clark negotiated ballooned to more than $400/hour as the caregivers used their position of trust to siphon all the money from her accounts by writing checks to themselves, leaving her to die penniless in a state-run nursing home in 2023.

Despite the clear evidence of fraud and elder financial abuse, the San Francisco District Attorney has declined to take the case. Clark's surviving relatives are still attempting to work with the police, albeit unsuccessfully so far.

How can working with a licensed, insured, and bonded home care agency help protect you and your family from a similar fate to Geraldine Clark's?

Oversight

By including multiple entities and levels of oversight in your or your loved one's care, you make it more difficult to hide important information that can affect both your loved one's wellbeing and decision-making power. Clark's caregivers hid the fact that she had been diagnosed with dementia in 2016 from her family. Knowing about the dementia diagnosis would have allowed the family to gain financial power of attorney, giving them more insight into and oversight of Clark's financial affairs. Licensed Home Care Agencies like Pallas Care can be "eyes on the ground" that are constantly in communication with their caregiving employees, clients, family members, and extended care circle including medical professionals, which likely would have alerted the family to the diagnosis much earlier.

Background checks

Clark's lead caregiver, the alleged mastermind behind the theft, had been prosecuted for two previous instances of similar fraud in Pennsylvania. Home care agencies are required to run full background checks on all their employees, which would have uncovered the caregiver's criminal record before she was hired.

Bonded & Insured

Licensed Home Care Agencies in California are required to carry at least $3 million in General and Professional Liability insurance, and a $10,000 bond against employee theft. It's unlikely that Clark's heirs will be able to recover any of the stolen funds; however, having an insurance policy like the ones Pallas Care carries would likely have paid them for a significant portion of their losses.

Mandated Reporters

In California, caregivers are mandated reporters for fraud and abuse, including financial abuse, and must sign a statement that they will immediately report even suspected instances to both their supervisors and Adult Protective Services. Failure to report can lead to criminal penalties, giving a strong incentive to potential whistleblowers who notice anything out of the ordinary. It can also make it easier to prosecute wrongdoers and bystanders after the fact if anything untoward does occur.

While it's tempting to save money by hiring caregivers directly, working with an agency is a wiser choice. Built-in deterrents and insurance policies help protect your and your loved ones' personal and financial safety. Trying to save a few dollars in the short term can lead to a far greater cost in the long run.

Read the SF Chronicle Story at https://www.sfchronicle.com/crime/article/caregiver-investigation-san-francisco-19778105.php