Justin Tobin is an investment banker. She pays attention to details, especially when it comes to money. But she said she was still caught off guard.
“This can happen to anyone, so I should speak out about what happened to me,” she said. So she sat down with Action 9 attorney Jason Stoogenke to share her story in the hope that others can learn from her experience.
She told Stogenk that her mother decided years ago that if she needed someone to have a power of attorney (POA) over her benefit, it would be Tobin’s brother.
She said the time had come. So, a few years ago, her brother took control of her mother’s finances. Tobin then suspected that he was abusing this power.
“So I did raise concerns with my mother’s agent,” she said. “This person told me this was not my problem. I had no power of attorney and no qualifications.”
Tobin said her brother committed suicide last May and she has been the administrator of his estate. “In the process, I realized that my brother had actually used all of my mother’s money,” she said.
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Looking back now, she wishes she had done more to challenge her brother in his role as POA. “What I should have done was contact more people. I didn’t because I was scared. I had reported what happened to my brother and everyone else in my family thought it couldn’t be true,” she said. “In this case, there is no hope. Don’t get your hopes up and take action.”
She said she should think beyond her agent and do any of the following:
• Compliance officer of the brokerage firm
• AARP
• Consumer Financial Protection Bureau (CFPB)
• Financial Industry Regulatory Authority (FINRA)
• North Carolina Attorney General’s Office
• Securities and Exchange Commission (SEC)
As fate would have it, last month FINRA issued this request for suggestions to better protect seniors from financial exploitation. Tobin couldn’t believe his eyes and jumped at the chance to be a part of it.
For POA, Stoogenke and Tobin recommend the following:
1. If you choose someone for a POA other than your interests, choose someone based on their character and judgment, not age, gender, stress.
2. If you are concerned about someone abusing their power:
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Act quickly. Don’t think it will resolve itself.
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Don’t put all your eggs in one basket. Contact multiple regulatory agencies.
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Don’t feel bad if you don’t have the “complete” case, all the evidence, yet. Trust your gut.
If you’re concerned that a relative has chosen the wrong grantor, talk to them and express your concerns logically, Stogenk says. But remember: ultimately, it’s their decision.
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