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#138857 - 12/11/03 06:52 PM Financial Abuse of Mentally Challenged
complyguy Offline
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complyguy
Joined: May 2001
Posts: 494
PA
Does PA have any kind of safe harbor for banks reporting likely financial abuse of mentally challenged customers?

Our situation is this: Adult male mentally challenged customer has been withdrawing hundreds of dollars each day at the request of his "girlfriend," who is a known heroin user and suspected prostitute. The customer's father has pleaded with us to restrict the account, but the account is in the customer's name alone.

It's sickening to watch this happen, but I don't see that we have any grounds to do anything unless there is some kind of safe harbor reporting for our customer the way there is in some states for elder financial abuse.

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#138858 - 12/15/03 09:45 PM Re: Financial Abuse of Mentally Challenged
complyguy Offline
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complyguy
Joined: May 2001
Posts: 494
PA
Jac? Maria? Anyone?

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#138859 - 12/15/03 09:50 PM Re: Financial Abuse of Mentally Challenged
JacF Offline

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Joined: Nov 2001
Posts: 6,719
PA
I can't say I've ever run across anything to that effect. If I find something, I'll let you know.

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#138860 - 12/15/03 10:53 PM Re: Financial Abuse of Mentally Challenged
William Offline
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William
Joined: Oct 2000
Posts: 470
In a location
As far as I know, no for PA. But yes, in MD.
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#138861 - 12/18/03 06:46 PM Re: Financial Abuse of Mentally Challenged
complyguy Offline
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complyguy
Joined: May 2001
Posts: 494
PA
Thanks, guys!

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#138862 - 01/08/04 02:46 PM Re: Financial Abuse of Mentally Challenged
complyguy Offline
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complyguy
Joined: May 2001
Posts: 494
PA
Just to update. Despite our repeated counselling with the mentally challenged customer, the money is now all gone. It was so frustrating to watch it happen, but to be legally blocked from preventing it.

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#138863 - 01/14/04 09:02 PM Re: Financial Abuse of Mentally Challenged
Last Mango Offline
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Joined: Mar 2001
Posts: 293
Too Far From the Beach
FYI - Last year our counsel sent us a notice about a case in PA where the court blamed the bank for a fraud involving a customer and "close" non-customer. I do not recall the specifics, other than it involved check disbursements and a court in the Philly area. The court said that the bank should have been reasonably suspicious about transactions to investigate further.

I investigated a fraud once of an officer who had "adopted" (not really) a mentally challenged person. This officer wound up forging his signature on the account, withdrawing money and kiting. It is very sad that people take advantage of others this way.

Oh yeah, I found it. The officer got 21 mos in the fed pen.
Last edited by Tin Man; 01/14/04 09:03 PM.
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#138864 - 01/15/04 03:51 PM Re: Financial Abuse of Mentally Challenged
DeeQ Offline
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DeeQ
Joined: Dec 2002
Posts: 40,766
Turnpike Exit 10
Sorry Comply Guy, I don't really look in the PA forums. I just stumbled across your question.
NJ has a social services division in which you can call and ask them to pay a "social call" to the targeted victim. Usually, an in depth discussion with the elder or handicapped person and with the caregiver will take place. Based on that informal interview, social services will either get authorization to investigate or not. Then the fun begins...

I don't really know much about PA, but I am sure that there must be protections in place. Did you check with the ADA?
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#138865 - 01/16/04 01:52 PM Re: Financial Abuse of Mentally Challenged
DebNP Offline
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DebNP
Joined: Oct 2001
Posts: 179
Eastern PA and NJ
The case Tin Man is referring to is here on BankersOnLine in the Court Cases - Fraud Section. (Jan. 2003 - United States vs. Thomas). (sorry my link function doesn't seem to be working this morning). The case involved an elderly care giver where the judge criticized the bank for not doing enough to alert the caregivers relatives to the situation. It was a US Court of Appeals in Eastern District PA.

I also seem to remember reading about pending legislation regarding elderly (mentally challenged, handicapped, and others with difficulties) that would make it a higher crime in PA to take advantage of these individuals. I think this might have been in the PBA newsletter, but I can't seem to find it now. I don't know if there is anything on their website. As far as I know it was not finalized yet.

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