Senate Bill 327: Civil Actions – Financial Exploitation of Vulnerable Adults (also known as the Maryland SAFE Act) was introduced on October 30, 2020.[1]  The bill was introduced in direct response to the explosion of cases of financial exploitation of vulnerable adults and is supported by the Maryland State Bar Association’s Vulnerable Adult Exploitation Task Force.[2]

Recent research conducted by the National Adult Protective Services Association suggests that one out of nine seniors have reported being abused, neglected or exploited in the last 12 months, and that of the reported incidences, the rate of financial exploitation is extremely high.[3]  It is also estimated that 90% of the abusers of these vulnerable adults are family members or trusted loved one.[4]

Vulnerable adults are defined as adults who are unable to perform one or more daily living activities without assistance, or who have diminished executive functioning due to age or physical, mental or emotional disability.[5]  Financial exploitation means taking the assets, funds, or property of the vulnerable adult with the intent to deprive through deception, coercion, isolation, persuasion, larceny, embezzlement, or intimidation.[6]

True Link Financial, a company that helps seniors protect themselves against fraud, exploitation, and financial abuse estimates that financial abuse of the elderly costs older Americans more than $36 billion a year and that number does not take into account the emotional and physical toll the abuse costs the victims.[7]  They report the financial abuse of the vulnerable adults consists of $17 billion lost due to financial exploitation, $12.5 billion lost due to criminal fraud (scams and identity theft) and $6.5 billion lost to caregiver abuse (theft enabled by a trusting relationship).[8]

The SAFE Act seeks to assist the victims of financial exploitation by creating a civil cause of action for them that serves both to deter individuals from taking advantage of vulnerable adults and to create a path for them to seek justice through recovery of their property and assets.[9]  Actions brought under the Act will survive the death of the victim and can be brought by other parties who are acting on behalf of the victim.[10]  Remedies available under the Act include a trebling of compensatory damages and the award of attorney fees and expenses.[11]

Financial exploitation of vulnerable adults is a “once-silent” issue that is now getting the attention it deserves.[12]  The hope is that bills such as S.B 327, and other bills being introduced throughout the country, will continue to shed light on this important issue and to provide victims with the ability and support needed to access the justice they deserve.

Renee Boyd is a third-year student at the University of Baltimore, School of Law and a Staff Editor for Law Forum.  Renee received a Bachelor of Science degree from Towson University and a Master of Business Administration degree from Loyola University.  She works full-time in the Orphans’ Court of Baltimore County where she oversees the Mediation program and provides legal support to the three probate court judges.  Renee will graduate in May 2021 and hopes to work in the area of Trusts and Estate law.

[1] S.B. 327, 441st Gen. Assemb. Reg. Sess. (Md. 2020)[hereinafter “S.B. 327”].

[2] Adam Spence, Esq., Address at the Meeting of the Members of the Senate Judicial Proceedings (Jan. 27, 2021).

[3] National Adult Protective Services Association, Elder Financial Exploitation, NAPSA https://www.napsa-now.org/get-informed/exploitation-resources/

[4] Id.

[5] S.B. 327.

[6] Id.

[7] True Link Financial, The True Link Report on Elder Financial Abuse, True Link (Jan. 2015), https://www.truelinkfinancial.com/white_papers/elder-financial-abuse-report/.

[8] Id.

[9] S.B. 327.

[10] Id.

[11] Id.

[12] True Link Financial, supra note 7.