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LANSING – Washtenaw County Democrats today unveiled the Elder Financial Protection Act, a plan that aims to shed light on the reprehensible act of elder abuse by cracking down on criminals who financially exploit seniors for their own gain.

"Elder abuse is a crime that is more prevalent than most people are aware of. This increase is due to the number of seniors we have turning to other people to care for them or help manage their finances," said State Representative Pam Byrnes (D-Lyndon Township). "We must take action now to crack down on the perpetrators of this disgraceful crime."

Elder abuse ranges from abandonment and neglect to financial exploitation to emotional, physical or sexual abuse. Caregiver neglect comprised 20 percent of substantiated reports, according to a report from the National Center on Elder Abuse. Financial exploitation was the culprit in 15 percent of elder abuse cases.

House Democrats' Elder Financial Protection Act would:

•        Make it mandatory for employees of financial institutions to report suspected elder abuse.
•        Require financial institutions to provide joint accountholders with a written summary of their rights.
•        Prohibit those convicted of elder abuse from inheriting from a victim's estate, and create an Elder Death Review Team to investigate suspicious deaths.
•        Allow a third party to file a criminal complaint on behalf of a victim of elder abuse.
•        Define financial exploitation as it relates to the Michigan Social Welfare Act.
•        Define the rights of those who are incapacitated.
•        Require a person who is granted power of attorney on behalf of a senior to sign a contract that details the person's obligations and fiduciary duties to act in the senior's best interest.

Michigan's Adult Protective Services investigated more than 9,300 cases of adult mistreatment in 2001, according to the National Center on Elder Abuse (NCEA). Adults age 60 and older accounted for 69 percent of the victims – an estimated 6,479 seniors. The investigations found that 70 percent of all victims suffered neglect and 15 percent were abused.

A 2004 survey of all 50 states conducted by the NCEA found that women are more likely than men to suffer from elder abuse or neglect, with two out of three elder abuse victims being women. The survey also found that two in five victims were age 80 or older. The same report found that 17 percent of elder abuse cases involved members of the victim's family.

"Our parents and grandparents deserve to be protected from the predators who seek to exploit them as they age and become more vulnerable to mistreatment and exploitation," said State Representative Alma Wheeler Smith (D-Salem). "Our legislation will help keep our loved ones safe."

In one case reported in the NCEA's 2004 survey[1], a 93-year-old woman's granddaughter moved into her house with her boyfriend, under the guise of offering caregiver assistance in exchange for free housing. The younger woman convinced her grandmother to add her name to the checking account. A bank teller at the older woman's bank noticed irregular account activity and reported it to Adult Protective Services. An investigation showed that the younger woman had become physically abusive toward her grandmother, pushing her down a flight of stairs. Authorities also learned that she had tried to get her grandmother to sign over the deed to the house.