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Summary of irregular transactions
Jack also found some more checks written to Sue.
Some of these checks were signed by Mary, some
Items Amount
were signed by George, and some had been forged
in George’s name. Finally, Jack obtained vehicle Payments to credit card accounts that are not George’s $ 10,463
titles, insurance documents, and documents related Payments for condo financing, refinancing, and closing costs $ 4,802
to other assets. Jack also noted that the credit reports
ATM withdrawals showing Mary’s debit card number $ 4,818
listed George as being on the mortgage loan when
Purchases for travel, shopping, etc. from Mary’s debit card $ 3,410
George and Mary’s condo was purchased, but
number
the mortgage loan was later paid off, and George
Checks written to Sue $ 5,547
was not listed as an owner when the condo was
refinanced. Less deposit on Nov. 12, 2019, to reimburse account ($ 5,500)
Jack prepared a conservative dollar summary of Total proposed for settlement $23,540
his findings, backed up by the details of the irregular
transactions, and gave it to George’s divorce attorney
(see the table, “Summary of Irregular Transactions”).
George’s attorney prepared a letter to Mary’s George? Was Mary a victim of Sue’s financial
divorce attorney summarizing the forensic findings. exploitation as well? As is often the situation when
The attorney’s letter included Jack’s summary of financial exploitation involves more than one person,
irregular transactions and supporting transaction- it is hard to separate Sue’s and Mary’s individual
detail worksheets prepared by Jack from his forensic actions to gain access to and use George’s money.
investigation. The forensic evidence indicates that Sue was acting
in her own financial interest as well as helping Mary
THE OUTCOME use George’s money for Mary’s benefit. Although
The pressure involved with divorce proceedings, some evidence suggested Sue was the mastermind
finances, and evidence of irregular transactions, behind the fraud, Mary was a willing participant by
along with George’s deteriorating mental state and using George’s funds to preserve her own money.
care needs, increased tensions between the two par- Either way, George was unaware of the financial
ties and their families. The divorce attorneys helped exploitation perpetrated by Sue and Mary. In the
temper these emotions and focus the case on the end, Mary had to pay the settlement, not Sue. So, in
relevant facts and legal issues. During the divorce that sense, Mary was a financial victim of Sue.
negotiation, Mary’s attorney initially offered $8,000
or to divide the assets and income according to state ELDERLY FRAUD ABUSE RESOURCES AND
law. Ultimately, the parties came to an amicable PROTECTION FROM FINANCIAL EXPLOITATION
agreement that economically benefited them both As this story indicates, CPAs should encourage their
and, again, settled the case based on the relevant clients with elderly family members to put policies
facts and legal issues. Per the settlement as stated and procedures in place as “internal controls” to help
in the final divorce agreement, Mary paid George prevent and detect irregular transactions. One way
$20,000. Each party kept their own assets and to protect the elderly from financial exploitation is
income. Also, as part of the final divorce agreement, to have someone acting in the elderly person’s behalf
both parties agreed to indemnify and hold harmless as a power of attorney. Of course, it is vital that the
Mary’s daughter, Sue. individuals with a power of attorney be trustworthy
Although in relative terms, the sum of money persons — unlike Sue as illustrated in this case
was not very large, the fraud had an emotional — who will carry out the elderly person’s affairs
impact on both the victim and his family. The fraud without exploiting the situation.
also seriously jeopardized the finances needed for Another action is for the elderly individual to
initial and ongoing costs of a long-term-care facility. have a living trust and, if necessary, a will. Again, the
In the end, George’s income was barely enough to appointed trustee should be someone of integrity.
cover his care facility expenses. From Jack’s point of view, he wished he would have
Note that the final divorce agreement includes obtained a power of attorney for George much
both parties’ agreeing to indemnify and hold earlier and had a living trust in place several years
harmless Mary’s daughter. This clause in the divorce before George started losing his memory.
agreement leads to multiple questions. Were Sue Additionally, the power of attorney or trustee can
and Mary co-conspirators in financially exploiting find and organize financial documents, insurance

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