Power of Attorney Abuse and Elder Financial Exploitation During COVID-19 Lockdowns

by Michael Hackard

Publication Date September 11, 2026 in Elder Financial Abuse

When Isolation Becomes a Weapon

I’m Michael Hackard, founder of Hackard Law. Over five decades of practice, I have fought for seniors and their families in estate, trust, and elder financial abuse litigation across California  –  from Sacramento to the San Francisco Bay Area to Los Angeles. I have written four books on inheritance protection, and our firm has produced more than 1,000 educational videos that have reached over seven million viewers. What I am seeing right now, in the shadow of COVID-19 stay-at-home orders, is deeply alarming. The isolation that was meant to protect our most vulnerable seniors has, in too many households, created the perfect conditions for financial predators to move in. Power of attorney abuse is surging. Abusers who were once limited by a senior’s daily routines and social contacts now have unimpeded access. The door has been closed to the outside world  –  and in some homes, that door has been locked by the very person entrusted with a senior’s care and finances.

Hackard Law provides contingency fee representation for qualified elder financial abuse and estate litigation cases  –  no upfront costs to you. If you believe a loved one is being exploited, call us today at (916) 313-3030.

Quick Summary

COVID-19 lockdown orders have accelerated elder financial exploitation across California, with power of attorney abuse emerging as a primary vehicle for financial harm to seniors.

• Stay-at-home orders have isolated seniors from friends, family, and professionals who might otherwise detect abuse
• Abusers are exploiting powers of attorney to redirect assets, drain accounts, and alter estate plans
• California law provides strong civil remedies for victims, including double damages and attorney fee recovery
• Early legal intervention is critical  –  the longer abuse continues, the harder asset recovery becomes
• Heirs, beneficiaries, and elder abuse victims can take action even while isolation orders remain in effect

How COVID-19 Created an Opening for Financial Predators

Governor Gavin Newsom’s orders requiring residents 65 and older to isolate at home were a necessary public health measure. But isolation carries a cost that few anticipated. When seniors are cut off from their regular social networks  –  their doctors, neighbors, church communities, and extended family  –  the warning systems that normally catch early abuse go quiet.

Abusers understand this. A caregiver, family member, or new acquaintance who has physical proximity to a senior during lockdown holds enormous informal power. That power becomes dangerous when it is paired with a signed power of attorney document. A power of attorney grants the agent sweeping authority to manage finances, sign documents, and make decisions on the principal’s behalf. In the wrong hands, it is not a protective tool  –  it is a financial weapon.

The same pattern driving surges in domestic violence during lockdowns is playing out in elder financial exploitation. Isolation silences victims. It cuts off their access to help. And it gives abusers time to move assets before anyone notices. Understanding when a power of attorney becomes a weapon is the first step toward stopping it.

What Power of Attorney Abuse Looks Like

Not all power of attorney abuse is obvious. Some of it is gradual  –  a slow redirection of funds, a series of small transfers, changes to account beneficiaries that happen one at a time. By the time a family member notices, significant assets may already be gone.

Using the POA to transfer real estate to oneself or a third party, emptying bank accounts under the guise of paying for care, changing the senior’s estate plan under duress or dishonestly, and cutting off the senior’s contact with other family members who might take over are common patterns.

Case Pattern: A senior woman living alone during the lockdown signed a power of attorney naming her live-in caregiver as agent. Over several months, the caregiver transferred funds from the senior’s accounts to personal accounts, citing household expenses. When the woman’s daughter finally reached her mother by phone, the accounts were nearly empty. The pattern here  –  isolation, financial control, and manufactured dependency  –  is one Hackard Law litigates across California.

California’s Elder Abuse and Dependent Adult Civil Protection Act provides meaningful remedies for victims of this kind of abuse. Families who act quickly have the best chance of recovering assets and stopping ongoing harm. Our elder financial exploitation resource outlines the legal landscape in detail.

California’s Legal Remedies for POA Abuse

California law does not leave elder financial abuse victims without recourse. The state’s elder abuse statutes are among the strongest in the country, and they are designed to make exploitation costly for abusers.

Under California Welfare and Institutions Code Section 15610.30, financial abuse occurs when a person takes, secretes, appropriates, or retains the property of an elder for a wrongful use or with intent to defraud. A successful claim can result in double damages and attorney fee recovery  –  a powerful deterrent and a meaningful remedy for families who have suffered significant losses.

Beyond financial recovery, courts can void transactions made under a compromised power of attorney, remove an abusive agent, and appoint a conservator to protect the senior going forward. Early legal intervention is critical. Courts can sometimes recover transferred assets, but only if action is taken before they are dissipated or hidden.

Case Pattern: During the lockdown, the son of an elderly man with power of attorney sold his father’s rental property to a business associate for less than market value. It took months for the father, who was alone and reliant on his son for daily care, to find out about the sale. The breach of fiduciary duty and the insufficient consideration paid were the main points of contention in the litigation, which California courts have acknowledged as grounds for voiding the transaction.

How Families Can Recognize and Respond to Abuse

Families are often the first line of defense. Even during lockdowns, concerned relatives and friends can take steps to identify abuse and get help. The challenge is that abusers frequently work to control communication  –  screening calls, intercepting mail, and managing what information the senior receives or sends.

If you notice that a senior family member seems reluctant to speak freely, that their financial situation has changed without explanation, or that a particular person has assumed unusual control over their daily life, these are warning signs. Reviewing our guide to guarding against elder financial abuse can help families understand what to look for and when to act.

For decades, I have helped families who felt powerless in the face of exploitation. The financial cost rises with each month that the abuse goes unchecked. Whether it’s between siblings, parents and children, or a senior and the life they created, it often causes a rift too deep for any judgment to fully heal.

However, the law allows us to stop the damage, recover what we can, and hold abusers accountable. Beyond legal strategies, families can protect themselves from those who exploit their trust through discovery, forensic accounting, and the pursuit of justice.

Key Definitions

• Power of attorney: A legal document authorizing one person (the agent) to act on behalf of another (the principal) in financial or legal matters.
• Elder financial abuse: The taking, secreting, or misappropriation of an elder’s assets through fraud, undue influence, or breach of fiduciary duty under California law.
• Agent: The person designated by a power of attorney to act on the principal’s behalf; also called an attorney-in-fact.
• Fiduciary duty: The legal obligation of an agent to act solely in the best interest of the principal, not for personal gain.
• Durable power of attorney: A POA that remains effective even if the principal becomes incapacitated  –  the type most commonly abused.
• Undue influence: Excessive pressure that overcomes a person’s free will, often used to obtain signatures on financial or estate documents.
• Double damages: A civil remedy available under California elder abuse law that allows courts to award twice the actual financial losses proven at trial.
• Conservatorship: A court-supervised arrangement in which a person is appointed to manage the finances or personal affairs of an incapacitated adult.
• Asset recovery: The legal process of tracing and reclaiming property that was wrongfully transferred or stolen from a senior.
• Breach of fiduciary duty: A failure by an agent or trustee to act in the best interest of the person they are legally obligated to protect.

What to Do Next

• Watch for unusual financial changes, especially if a senior suddenly becomes close to someone who takes control or prevents private conversations.
• Get copies of any signed power of attorney documents. Review the dates and terms to understand exactly what authority was given.
• Try to avoid confronting a suspected abuser directly before consulting an attorney  –  early missteps can complicate litigation.
• Contact a financial institution if you believe unauthorized transactions have occurred; banks have elder abuse reporting obligations under California law.
• Look into California’s elder abuse statutes and understand that civil remedies  –  including double damages  –  may be available through our complete elder exploitation guide.
• Review our California inheritance theft guide if estate assets have already been redirected.
• Try to document everything: dates, transactions, communications, and any witnesses to the senior’s condition or statements.
• Learn what California beneficiaries need to know about their rights when a trust or estate is involved.
• Call Hackard Law at (916) 313-3030 to discuss your case with an attorney who handles elder financial abuse and estate litigation across California.
• Visit our contact page to reach us online and schedule a consultation.

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