Legal Financial Exploitation

Legal Issues in Financial Exploitation - Highlights PDF

Frequently Asked Questions (FAQ)

  1. Is financial exploitation a crime?
  2. What protection does the law provide?
  3. What can I do if I have experienced financial abuse or economic crime?
  4. What can I do if someone I know is experiencing financial abuse or economic crime?
  5. How do I report financial exploitation?
  6. Why is it important to get legal advice?

1. Is financial exploitation a crime?

Some but not all abusive actions are defined as crimes. The Criminal Code of Canada describes the different offences that someone can be charged with if they are accused of abusive actions towards older adults. Offences cover physical and sexual abuse, chronic psychological abuse, neglect, loss of rights (under the Canadian Charter of Rights and Freedoms), theft, breach of trust and breach of power of attorney, extortion, false pretenses, fraud and intimidation.

To find out if you have been a victim of a crime, call your local police agency.
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2. What protection does the law provide?

In addition to the Criminal Code of Canada, there may be provincial statutes that protect you, such as the Nova Scotia Powers of Attorney Act. The courts can impose penalties on people who break the law.

Because not all behaviour considered abusive falls under the Criminal Code, a range of resources and supports are necessary to be able to respond to cases of abuse. And while the definitions presented here are commonly accepted, definitions contained within legislation may vary. This may be important in determining what legal responses are available, and it emphasizes the need for a range of resources and supports.

Suing in Civil Court is also an option in some cases. You can sue the person who has abused you in the civil courts for compensation. If you have had property or money stolen, it might be appropriate to sue the abuser for damages for the amount of the loss or for restitution of the money or property (paying back what they took).

In some cases, mediation between the senior and the offender may be an alternative to a court process. Whether this might be appropriate depends on the circumstances. A lawyer can advise you.

The value of good legal information and advice cannot be understated! It is a valuable investment. It is important to get reliable legal information and advice before starting a legal process. In addition, it is crucial to have efficient legal representation should you decide to follow any of the legal options mentioned above. It is important to consult a lawyer who is experienced in your specific area of concern. There are lawyers who have experience in criminal and civil matters, and some who focus on issues of Elder Law, such as wills, estates and powers of attorney.
See How to Get Legal Information and Advice and Hiring a Lawyer in PDF*.
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3. What can I do if I am being financially abused?

(Some of the information in this section is taken from the National Clearinghouse on Family Violence 1998 publication Financial Abuse of Older Adults, and the Canadian Network for the Prevention of Elder Abuse [CNPEA] website.)

What you should know:
If you are being financially abused by a family member or close friend, there are several things you need to know:

  • You are not to blame.
  • You do not deserve to be abused.
  • You have a right to live without fear.
  • You have a right to your own money and property.
  • You have the right to a safe, healthy relationship and to have your own life.
  • You cannot control the abuser's behaviour.
  • Abuse often gets worse over time.

If you are not ready, or do not want to do anything right now, that is your choice—it is okay. But the following section “What you can do” provides information that could be helpful if you do decide to take action at a later date. Information gives personal choice and personal power.

What you can do:
There are specific actions you can take to stop financial abuse and prevent it from happening again:

  • You can talk to someone you trust – a friend, relative, clergy or health practitioner, or anyone else you trust. You can also call the police, a senior’s resource centre, crisis line, or legal information agency. Call the Department of Seniors for information on programs and services in your area: (902) 424-0065 or 1-800-670-0065 (toll free in Nova Scotia).
  • You can revoke a power of attorney if it is being misused. This is a simple process, requiring a letter drafted by yourself or your lawyer. You will need to send a copy of the letter to your attorney, bank, credit card company and other places where you do business.
  • You can close any joint bank accounts that you have with the person who is financially abusing you.
  • You may be able to get a peace bond or restraining order to prevent the abuser from contacting you if you are in fear of the abuser. You have to go to court to get a peace bond.
  • You can report the abuse to the police, who will investigate to determine if the abuse is a crime, and will make recommendations about how to proceed. You may contact the police about whether the abuse amounts to a criminal offence. If it does, the police may lay charges and the matter would go to court. You may also be able to sue in civil court for the return of money or property. You should speak with a lawyer about your particular situation or call the Legal Information Society’s Legal Information Line to learn about what options might be available to you. Call 455-3135 (Halifax Regional Municipality) or1-800-665-9779 (toll free in NS).
  • A complete investigation can take considerable time, and there is no guarantee that you will recover any of your lost funds. Nevertheless, it is still important to report economic crime.

See How to Get Legal Information and Advice and Hiring a Lawyer in PDF*.

For information on programs and services in your community, call the Department of Seniors at 1-800-670-0065, or 424-0065 (within HRM).
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4. What can I do if someone I know is being financially abused?

In all cases of financial abuse, the first consideration should be for the well-being and rights of the senior. If an older person’s safety is in jeopardy, call the police. In other cases, it is important to consider the following:

It is very important to tell the older person that:

  • They are not to blame.
  • They do not deserve to be abused.
  • They have a right to live without fear.
  • They have a right to their own money and property.
  • They have the right to a safe, healthy relationship and to have their own life.
  • They cannot control the abuser's behaviour.
  • Abuse often gets worse over time.

The older person has the right to self-determination. If they are not ready, or do not want to do anything right now, that is their choice—it is okay. But you can provide information about what they need to know or what they can do if they decide to take action at a later date. Information gives personal choice and personal power. Also, by being a good listener and respecting the older person’s wishes, you may ease the concerns of the older person.

In cases where financial abuse occurs at the same time as other forms of abuse and the person is determined to be an “adult in need of protection”, Adult Protection Services is able to intervene. The Nova Scotia Adult Protection Act defines an adult in need of protection as someone over the age of 16 who is abused or neglected and who cannot physically or mentally protect or care for herself or himself. If you have information, whether it is confidential or not, indicating that an adult is in need of protection, you have a duty to report it. To report a known or suspected case of an adult in need of protection, call 1-800-225-7225. The Adult Protection Act does not cover situations where there is financial abuse only.

For information on programs and services in your community, call the Department of Seniors at 1-800-670-0065, or 424-0065 (within HRM).
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5. How do I report financial exploitation?

The first step is to call the police. They will carry out an investigation and determine whether the activity is a crime as defined by the Criminal Code of Canada. If it is, the offender can be charged in criminal court and if found guilty of a crime, they will be subject to penalty. Penalties may include a fine, probation, restitution (paying back what they took), a discharge or imprisonment.

If an investigation determines the financial exploitation does not fall under the Criminal Code, you may still be able to sue for damages in civil court. You should consult a lawyer for advice. (Question 14 discusses the value of legal information and advice in more detail.)

Not all abuse is a crime. Sometimes, cases can be resolved without going to court. A police investigation can act as a deterrent to the abuser and in some cases may be enough to stop the abusive behaviour. In other cases, a letter from the victim’s lawyer can also act as a deterrent.
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6. Why is it important to get legal advice?

Getting legal advice is a worthwhile investment. Many people are reluctant to contact lawyers for help because they think it will cost too much, or they simply don’t know how to find one. Sound legal advice, particularly from a lawyer who deals with the growing field of Elder Law, can have many benefits. This may include reduced stress, a less complicated and speedier resolution to problems, and having someone who understands and has experience in similar cases. In addition, getting legal advice may help you avoid costly mistakes that can occur when trying to deal with things on your own.

There are several ways to find a lawyer. You can search the yellow pages of the telephone book, or ask family and friends for referrals.

You can also call the Legal Information Society of Nova Scotia’s Lawyer Referral Service at 1-800-665-9779 (toll free) or 455-3135. The service is available Monday to Friday between the hours of 10:00 am and 3:00 pm and Tuesday and Wednesday evenings from 5 pm to 7 pm (September to May only).

The Nova Scotia Barristers' Society has a listing of law firms on its website.

See How to Get Legal Information and Advice and Hiring a Lawyer in PDF*.

If you have been the victim of consumer fraud, you should also report the incident to the police. See Question 6 in "About Financial Exploitation" for more information about the importance of reporting financial abuse.
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