Executor embezzles $3.7 million from dementia patient, exposing a growing elder-fraud crisis
When a 66-year-old trustee systematically drained $3.7 million from his 92-year-old dementia patient’s accounts, it laid bare the devastating human toll behind soaring elder-fraud statistics. Now, cooperatives like Appalachian Community Federal Credit Union are responding with age-friendly alerts, legal safe harbors, red-flag training, and World Elder Abuse Awareness Day initiatives to turn data into decisive protection.
After befriending a 92-year-old woman who suffered from senile dementia—and, after being named her executor and trustee, a 66-year-old man systematically drained $3.7 million from her accounts through withdrawals, checks, and credit-card charges.
The man then squandered the funds on lavish vacations, gourmet dining, high-end shopping, theater tickets, alcohol—and even extensive plastic surgery—leaving the woman’s estate and heirs virtually penniless.
That’s all, according to the district attorney, who condemned the crime as a “take advantage of an elderly woman suffering from senile dementia,” noting that the betrayal not only robbed the woman of her lifetime savings but also violated the fiduciary duty he was entrusted to uphold.
Unfortunately, this type of crime is common. In 2024, older Americans lost $12.5 billion to scams and fraud—a 25 percent increase over 2023’s $10 billion—while victims aged 60 and older filed 147,127 complaints with the FBI’s Internet Crime Complaint Center, reporting $4.9 billion in losses (a 43 percent jump).
What elder financial exploitation is—and why it matters
The Department of Justice defines elder financial exploitation as the improper use of an age-60-or-older adult's funds, property, or resources by another individual, including, but not limited to, fraud, false pretenses, embezzlement, conspiracy, forgery, falsifying records, coercion, property transfers, or denying them access to their wealth.
The figures above underscore not only the scale of financial harm but also the urgency for proactive defenses.
The most common types
In conjunction with World Elder Abuse Awareness Day on June 15, Appalachian Community Federal Credit Union posted a news item stressing how tellers and member-services staff become the first line of defense in daily interactions.
Appalachian Community FCU also shared a list of the most common elderly financial abuse:
- Property theft
- Misuse of income or assets
- Forged checks
- Fraudulent use of Power of Attorney privileges
- Lotteries and phony contests
- Phony solicitation from charities
- Investment fraud
- Medical scams
- Contractor scams
- Grandparent/grandchild imposter emergency scams
- Sweetheart or romance scams
Common schemes and red flags
There are warning signs that credit unions can be mindful of. It might be something as eye-catching as sudden large withdrawals or abrupt shifts in an investment strategy. It could be something as subtle as a new signer on an established account. These often occur through common schemes:
Family or caregivers: Misuse of joint accounts or powers of attorney remains prevalent.
Strangers: Romance scams, tech-support imposters, and “grandparent emergency” pitches drive urgent wire-transfer requests.
Financial professionals: High-pressure investment solicitations and unauthorized transfers occur often enough that many states now permit temporary “report-and-hold” freezes when exploitation is suspected.
Credit unions as front-line defenders
At Achieva Credit Union’s Clearwater branch in early 2025, an 89-year-old member arrived to withdraw $9,500 after receiving a call from someone claiming to be her grandson’s attorney. Teller Jennifer Sgro recognized the unusually large, urgent request, engaged the member in conversation, and then quietly called the grandson—who was safe and unaware of any legal trouble—and the member’s daughter.
Sgro subsequently notified local law enforcement and placed the transaction on hold, effectively blocking the scammer and preserving the member’s life savings. This swift, informed response underscores how empowered frontline staff—armed with red-flag training and trusted-contact procedures—can turn routine withdrawals into critical fraud interventions.
Credit unions can consider how to establish their own red-flag alerts and rapid interventions:
Trusted contacts. Encourage members to designate a trusted third party—often a family member—whom staff may alert before questionable transactions proceed. Collect the trusted contact’s information at account opening.
Legal safe harbor. The Senior Safe Act and FINRA/SEC guidelines shield good-faith staff who pause or report suspicious transactions from liability.
Mandatory training. Institutions leverage up-to-date modules—from CFPB’s Office for Older Americans to NASAA/FINRA toolkits—to refresh red-flag recognition annually.
Embed fraud alerts. Place fraud alerts within e-statements, mobile-app banners, and lobby signage.
Formalize “report-and-hold” procedures. Aligned procedures with state safe-harbor statutes to freeze suspect disbursements up to 15 days.
Host World Elder Abuse Awareness Day events. For example, EECU Credit Union (Fort Worth, Tex.) is planning an on-campus “Purple Pep Rally & Walk” on June 13, 2025, to demonstrate an in-person community campaign—complete with purple tees, informational booths, and survivor testimonials—to raise local awareness of elder-exploitation schemes.
With more than $12.5 billion in verified 2024 losses and nearly 150,000 elder-victim complaints, the imperative for credit unions is clear. By embedding age-friendly features and equipping staff with current red-flag training, credit unions can protect their members’ savings and strengthen trust at every branch.