Aging adults in California draft powers of attorney to protect themselves. They can give someone who they trust the access and authority necessary to manage their finances. Proper planning can protect someone from guardianship and from economic hardship caused by an inability to manage their own resources.
The attorney-in-fact or agent appointed in power of attorney documents has a fiduciary duty to the principal. The state requires that they act in the best interests of the person who granted them authority. Unfortunately, not everyone who has the authority to access and manage another person’s resources remains honest and upholds their duty.
Family members and other concerned individuals may discover that an agent embezzled or otherwise abuse their authority for personal gain. What are the potential penalties for abusing power of attorney in California?
Financial consequences from civil proceedings
The most common consequence for the misuse of power of attorney and breach of fiduciary duty is a lawsuit. The vulnerable individual or others acting on their behalf can initiate a lawsuit in accordance with California state law.
By providing the courts with evidence of the misuse of resources and the value of those resources, it is possible to hold one party accountable for misappropriating the assets and money of another. The courts can order the fiduciary who breached their duty to compensate the vulnerable individual for the full amount of the resources they squandered or stole.
Criminal charges and penalties
California state prosecutors can sometimes bring criminal charges against those accused of financial abuse targeting older individuals. The penalties can differ substantially depending on the situation.
The courts can impose a fine of up to $2,500 and a year in jail if the amount stolen or misappropriated is less than $950. For higher amounts, the penalties increase to up to $10,000 in fines and between two and four years in prison. It is possible to push for the prosecution of someone who breached their fiduciary duty and to take civil action against them as well.
Holding family members or caregivers entrusted with financial authority responsible for financial abuse of an older adult takes patience and evidence. Those who fight back against misconduct can potentially punish a person who has misused a position of authority for personal gain at the expense of a vulnerable individual who trust them.
