PEOPLE : Protecting the Elderly : Cases of financial abuse against senior citizens are rising dramatically. But there are ways to fight back.

Which reported crime against the elderly is the fastest-growing?

It’s not physical abuse, or such neglect as the “grandpa dumping” that shocked the nation this summer. Rather financial abuse, in which senior citizens are bilked out of anything from a few hundred dollars to their home, car and life savings, has gained a new and grim stature.

The allegations against Laguna Hills lawyer James D. Gunderson have further alerted the public to a problem that those in the elder-abuse field see too often. In court documents filed by relatives and heirs of some of Gunderson’s 7,000 Leisure World retirement community clients, he is accused of making himself the recipient of millions of dollars in cash and real property.

“I refer to this as the crime of the ‘90s,” said Detective Chayo Reyes of the Los Angeles Police Department’s Crimes Against Elderly Person’s Estate unit, part of the Bunco/Forgery Division. Since the inception of his unit in 1987, Reyes says he figures conservatively that it had recouped about $15 million from elder abuse cases originating within bunco and outside agencies. “Since 1990, there has been a dramatic increase in the reported cases. Part of it, I believe, is that there are more people aware of this sort of crime, and they know to report it.”

Reyes says that generally the victims, over 65, have a diminished mental capacity, live alone and either don’t have family members or aren’t often visited by family. Trouble begins when someone, whether a relative or stranger, befriends the elder, establishes trust and then gains access to the elder’s money and uses it for activities other than those that further the elder’s well-being.

“Many times it’s easy to do,” Reyes said, “because of the living conditions and the mental condition of the victim.”

The unscrupulous will try to get legal control of an estate through a power of attorney, a quit claim deed, a will or a living trust--in other words, through the same legal instruments that are used to help protect one’s legal assets.

“Once they have legal control, they act as if they have a license to steal,” he said.

Reyes and his partner, Detective Dave Harned, receive about 15 calls a day, some from bank officials who have noticed a change in an elderly client’s withdrawal patterns. The unit has 40 cases pending.

What kind of safeguards are there against financial abuse?

Ultimately, there is no better protection than a strong network of people who have an elder’s best interests in mind. Since most financial transfers are private, abuse rarely comes to the attention of such agencies as the police department, the county public guardian or county adult protective services without a tip from someone who knows the victim and suspects abuse.

Glendale-based lawyer Valerie J. Merritt says the best place to begin is with communication among family members.

“The first thing for protecting yourself is to think long and hard about the process while you still have your wits about you,” said Merritt, chairwoman of the Executive Committee, Estate Planning and Probate Section of the California State Bar.

“It’s increasingly true that children don’t live near their parents. Children need to think about just talking with their parents. Ask them, ‘Have you thought about a will? What if you have a stroke, or are disabled during your lifetime?’ ”

Merritt agreed that “it’s a difficult subject to bring up,” and it’s precisely that lack of communication that can cause problems later on.

Encino lawyer Marc Hankin specializes in the emerging field of elder law. Along with state Sen. Henry Mello (D-Watsonville) and former Sen. Ed Davis, he is co-author of the state Elder Abuse and Dependent Adult Civil Protection Act, which Gov. Pete Wilson signed into law last year. Leah Granof, spokeswoman for the Southern California Council of Elder Lawyers, says that so far, no cases have been prosecuted under the law.

“On the one hand, I can set up trusts for those who are healthy. But on the other hand, they could go over to another lawyer after the Alzheimer’s has set in, and he could do anything,” Hankin said. “I could also set up an irrevocable trust, but then you wouldn’t have unfettered access to your assets, either.”

Hankin recommends establishing a close relationship with a certified public accountant. The accountant can then monitor the client’s finances and schedule one or two visits a year for review. During that time, he can also see how the client is faring mentally. Hankin suggests an authorization, in which confidentiality is waived, that allows the accountant to alert the client’s family if he thinks that he sees a diminished capacity. He says the same sort of authorization should be given the family doctor.

Hankin has created a “Tax Preparer’s Checklist for Eldercare Issues.” The object is to get certified public accountants or other financial planners thinking in a pro-active way. For example, one question asks whether the accountant has a list and photographs of the client’s jewelry, valuable collections, art and other valuables.

“If the CPA’s elderly client gets Alzheimer’s disease or a stroke or some other dementing disease, and is swindled, the CPA’s list may be the only record of the assets swindled away, so that they can be recovered in a lawsuit for elder abuse,” Hankin says in the document.

“This should all be done ahead of time, while you are still healthy,” Hankin said.

Reyes agrees: “Senior citizens should set up a living trust now, while they are mentally clear, to prevent anything from happening later.”

Where to Go Information: Individuals who would like to obtain a copy of Marc Hankin’s “Tax Preparer’s Checklist for Eldercare Issues” may do so by sending $1 for copying expenses and a self-addressed, 13- by 10-inch envelope with 75 cents in postage attached to: Marc Hankin Grayson, Givner, Booke, Silver & Wolfe First Interstate Bank Building 16633 Ventura Blvd. 6th Floor Encino, CA 91436-1862 Allow at least two weeks for processing.

Signs of Trouble

How can you spot financial abuse? The nonprofit Elder Abuse Prevention Program in Denver lists these five possible indications:

* Unusual activity in bank accounts. For example, withdrawals from automated teller machines when the person cannot walk or get to the bank.

* A power of attorney given when the person is unable to comprehend the financial situation and, in reality, is unable to give valid power of attorney.

* Numerous unpaid bills, overdue rent, when someone is supposed to be paying the bills.

* Recent acquaintances expressing gushy, undying affection for a wealthy older person.

* A friend or housekeeper trying to isolate the older adult from friends or family.