Abuse Of Power Of Attorney Prosecutions
Abuse of Power of Attorney: Overview
What is Power of Attorney Abuse?
Power of attorney abuse occurs when an agent (the person given POA authority) acts beyond or contrary to the grantor's (principal’s) interests—typically by misappropriating funds, property, or making unauthorized decisions. This misuse can involve fraud, theft, or breach of fiduciary duty.
Legal Framework
State Laws on Fiduciary Duty and Theft: Most POA abuses are prosecuted under state laws involving theft, fraud, embezzlement, or breach of fiduciary duty.
Mail and Wire Fraud (18 U.S.C. §§ 1341, 1343): Used in cases involving electronic or mail communications in the fraud scheme.
Elder Abuse Statutes: Some states impose harsher penalties for abuse involving elderly or vulnerable adults.
Financial Exploitation Laws: Many states specifically criminalize financial exploitation by fiduciaries.
Key Case Law and Prosecutions
1. United States v. Edmonds, 922 F.3d 582 (4th Cir. 2019)
Facts: Edmonds, holding POA for an elderly woman, transferred over $1 million from her accounts to his own personal accounts.
Legal Issues: Charged with wire fraud and theft of funds under federal law.
Outcome: Convicted; sentenced to 10 years imprisonment.
Significance: Demonstrates federal prosecution of POA abuse involving large-scale financial theft.
2. People v. Jackson, 2018 IL App (1st) 152212
Facts: Jackson, as POA, sold the principal’s property without consent and kept proceeds.
Legal Issues: Convicted of theft and breach of fiduciary duty under Illinois law.
Outcome: Sentenced to prison and ordered restitution.
Significance: Highlights state-level prosecution of POA misuse involving real estate fraud.
3. State v. Perez, 2017 WL 4015673 (Nev. Ct. App. 2017)
Facts: Perez, POA for her mother, forged signatures to withdraw funds from multiple accounts.
Legal Issues: Charged with forgery, theft, and financial exploitation of a vulnerable adult.
Outcome: Convicted; sentenced to prison and restitution.
Significance: Illustrates how elder abuse and forgery charges can accompany POA abuse prosecutions.
4. United States v. Moreland, 258 F.3d 683 (7th Cir. 2001)
Facts: Moreland used POA authority to funnel assets into his own companies without permission.
Legal Issues: Wire fraud and money laundering.
Outcome: Convicted; prison term upheld.
Significance: Example of federal charges applied when POA abuse crosses state lines or involves interstate financial transactions.
5. Commonwealth v. Stewart, 2019 PA Super 249
Facts: Stewart abused her POA by withdrawing funds for personal use, ignoring the principal's instructions.
Legal Issues: Theft by unlawful taking and breach of fiduciary duty.
Outcome: Convicted; sentenced and ordered to repay.
Significance: Shows how criminal theft laws are applied to POA abuse in Pennsylvania.
6. People v. Johnson, 2015 NY Slip Op 51288(U)
Facts: Johnson was granted POA for an elderly relative but used it to pay personal debts and buy luxury items.
Legal Issues: Criminal possession of stolen property and financial exploitation.
Outcome: Convicted; restitution ordered.
Significance: Illustrates that POA abuse can lead to multiple charges depending on actions taken.
Summary Table
| Case | Jurisdiction | Key Charges | Outcome | Significance |
|---|---|---|---|---|
| United States v. Edmonds | Federal (4th Circuit) | Wire fraud, theft | Convicted, 10 years | Large-scale federal POA abuse case |
| People v. Jackson | Illinois | Theft, breach of fiduciary duty | Convicted, restitution | Real estate fraud via POA |
| State v. Perez | Nevada | Forgery, financial exploitation | Convicted, prison | Elder abuse linked to POA misuse |
| United States v. Moreland | Federal (7th Circuit) | Wire fraud, money laundering | Convicted, prison | Interstate financial abuse |
| Commonwealth v. Stewart | Pennsylvania | Theft, fiduciary breach | Convicted, repayment | State criminal theft in POA abuse |
| People v. Johnson | New York | Financial exploitation | Convicted, restitution | POA used for personal debts |
Final Thoughts
Abuse of power of attorney is a serious offense often prosecuted under a mix of criminal theft, fraud, and elder abuse laws. The scope of prosecution depends on the nature of the abuse, the amount involved, and the vulnerability of the victim.
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