Financial Exploitation in Nursing Homes

Not all forms of elder abuse are physical, but no matter the form it takes the abuse of our country’s senior citizens should not be taken lightly. Financial exploitation of seniors is a common occurrence, and because many retirees do not have the ability to defend themselves from this kind of threat it carries with it the possibility of significant financial losses and a wide array of related problems.

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Nursing home residents are often vulnerable to various types of abuse and neglect. Some are particularly at risk of financial exploitation, in which a perpetrator steals from or fraudulently manipulates an elderly individual into transferring their assets.

Knowing the warning signs for financial exploitation can help you and your family take action to protect your loved one from theft and fraud.

What Is Financial Exploitation of a Nursing Home Resident?

Illinois law defines financial exploitation of an elderly person as one of two crimes knowingly committed against a person aged 60 or older by someone they trust:

Deceiving or intimidating the victim into giving the perpetrator control over their property.
Using the victim’s assets for personal benefit.

Nursing home residents are often older and suffer from physical or mental disabilities, such as dementia or alzheimer’s disease, making them especially vulnerable to financial exploitation and scams.

What Does Financial Exploitation Look Like in a Nursing Home?

Financial exploitation in nursing homes can be as simple as stealing belongings and as complicated as fraudulently manipulating a resident into changing their will. Anyone with access to a resident can commit financial exploitation, including nursing home employees, caregivers, other residents, friends, relatives, and even agents under power of attorney.

Suspicious financial activity doesn’t prove exploitation on its own, but the surrounding circumstances can point to further evidence. Some common examples of financial exploitation in nursing homes include:

Stealing cash, jewelry, or other valuable personal belongings
Making unauthorized purchases using a resident’s debit or credit cards
Withdrawing or transferring funds from a resident’s bank accounts
Forging a resident’s name on checks or other financial documents
Manipulating residents to make “investments” they don’t fully understand
Pressuring a resident to provide funds or purchase expensive gifts
Persuading a resident to make changes to their estate, including their will, power of attorney, or other important documents
Misusing power of attorney or similar positions of trust for personal benefit

Warning Signs Families Should Watch For

What You Notice	Why It May Deserve a Closer Look
Unexplained withdrawals or transfers	Someone else may have accessed the account
Missing cash or valuables	Someone may have stolen your loved one’s belongings
Sudden changes of behavior toward finances, such as refusing to discuss money or uncharacteristic confusion	Someone may be manipulating or intimidating your loved one to gain access to their finances
Unpaid bills despite sufficient funds	Someone may have set up your loved one’s accounts to transfer funds to them instead of directly toward bills
Unfamiliar purchases on your loved one’s accounts	Someone may have used your loved one’s cards or accounts for personal expenses
Changes in your loved one’s signature on financial documents	Someone may be impersonating your loved one to access their assets
Claims of “winning the lottery” or enthusiasm about a new “investment”	Your loved one may have fallen victim to a scam or predatory financial scheme
Sudden sales or ownership transfers of real estate or other valuable assets	Someone may be attempting to steal property from your family
An unfamiliar individual is becoming suspiciously close with your loved one, or tries to stop family members from discussing finances with them	They may be attempting to convince your loved one to add them as a beneficiary or make other drastic changes to their estate
Your loved one always seems to be low on money, despite a family member or friend supposedly managing their finances	Your loved one’s financial manager may be stealing funds from their accounts

What Should I Do if I Suspect Financial Exploitation?

You don’t need proof that your loved one is being financially exploited to take action and report reasonable suspicions. Some steps you can take to protect your loved one include:

Document everything. Take notes describing in detail what raised your concerns about possible financial exploitation, including anything you noticed during in-person visits. Make a record of any missing property, and review your loved one’s account statements to identify any suspicious charges or transactions.
Collect and preserve evidence. Gather any relevant financial records, including:
- Bank statements
- Physical copies of checks, receipts, or bills
- Transaction histories
- Power of attorney and estate planning documents
- Activity records from your loved one’s nursing home facility account
- Photographs of any missing belongings
- Written communications related to suspicious activity
Notify financial institutions. Send messages disclosing your suspicions to your loved one’s banks and other involved parties.
Bring your concerns to the facility. Contact the nursing home’s management team and provide evidence of potential exploitation, including who to watch for and what to investigate.
Report the situation to the authorities. The Illinois Department on Aging’s Adult Protective Services (APS) Program investigates claims of financial exploitation of nursing home residents. Other reporting options are also available and can help point you in the right direction.

What Are the Consequences for Financial Exploitation Under Illinois Law?

Under 720 ILCS 5/17-56, financial exploitation is a felony considered more severe based on the value of the property involved and how advanced the victim’s age is. Perpetrators can be sentenced to anywhere from one to 15 years in prison if convicted, depending on the severity of the felony.

Whether or not a perpetrator has been criminally charged with financial exploitation, the law allows the victim or their estate to pursue a civil lawsuit for three times the amount of their financial losses, plus attorney’s fees. A lawyer can also petition the courts to freeze a portion of the perpetrator’s assets equal to the victim’s losses while criminal proceedings unfold.

The nursing home may potentially share liability for failing to prevent financial exploitation of its residents, especially if an employee was involved. An experienced attorney can help you understand the specifics of your legal situation.

When Should I Consider Speaking With a Nursing Home Abuse Attorney?

If you suspect your loved one is being financially exploited in the nursing home, the trusted legal team at Levin & Perconti can help you gather evidence, build a case, and hold those responsible accountable. Our nursing home abuse lawyers have over 400 years of combined experience getting justice for clients like you, and we’re ready to help protect your family.

Legally Reviewed by

Steven M. Levin

Founder and Senior Partner

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Since 1976, Steve Levin has been dedicated to helping people injured by others’ negligence. He is one of the first attorneys in the U.S. to prosecute nursing homes for abuse and negligence. He’s also helped write new legislation that governs the operation of nursing homes, including the Illinois Nursing Home Care Act. Moreover, Levin & Perconti has obtained the top three jury verdicts in nursing home negligence cases in Illinois.