Establishes the crime of exploitation of an elderly person, vulnerable elderly person or incompetent or physically disabled person

Title of bill

An act to amend the penal law and the social services law, in relation to preventing financial exploitation of the elderly

Purpose

Establishes exploitation of the vulnerable elderly or incompetent or physically disabled as a form of larceny.

Summary of provisions

Section 1 amends section 260.31 of the penal law by changing the definition of "Caregiver".

Section 2 amends section 155.05 of the penal law by changing the definition of larceny to include financial exploitation of the vulnerable elderly or incompetent or physically disabled person.

Section 3 amends section 155.15 of the penal law by creating a defense for financial exploitation of the vulnerable elderly or incompetent or physically disabled.

Section 4 amends section 473 of the social services law to require local officials to report to the appropriate district attorney's office when there is reasonable belief that a crime is being perpetrated against a person for whom protective services are being provided.

Section 5 is the effective date.

Justification

Financial exploitation of the vulnerable elderly is a pervasive and often unseen form of abuse. According to former Maine Attorney General Steven Rowe, financial exploitation is a factor in 40% of all elder abuse cases. This is a trend that is only bound to increase, given that 70% of the nation's household net worth is owned by seniors, and our society is rapidly aging.

The National Center on Elder Abuse defines elder financial exploitation as "the illegal or improper use of an elder's funds, property or assets." Such instances of exploitation take form in the way of credit card fraud, real estate scams, identify theft and burglary. They are also notoriously difficult to combat. Even when reported to local authorities, antiquated criminal statutes make it difficult to prosecute these offenses.

Considering the widespread and shocking prevalence of financial exploitation against seniors, it remains a mystery why New York has no law to enable law enforcement to stop this abuse.

In passing this bill, New York would be joining at least 29 other states responding to the need for increased protection for elders against financial abuse. This bill would give district attorneys and police the tools they need to prosecute instances of financial exploitation.

Among its other provisions, this bill also requires adult protective services officials to report all instances of suspected exploitation to their district attorney's office. Timely identification of exploitation and capable enforcement of the law will go far in preventing financial abuses against the vulnerable elderly. In addition, this proposal would transform convenience accounts into a viable financial planning tool for the vulnerable elderly. Currently, these accounts have no safeguards protecting them from unintended and unwarranted use by persons in a position of trust.

Legislative history

2013-14: S.102/A.4316 Referred to Codes/Referred to Codes 2011-12: S.6712/A.10456 Passed Senate/Referred to Codes

Fiscal implications

None.

Effective date

This act shall take effect on the first of November next succeeding the date on which it shall have become a law.