New Jersey enacted a statute in 1998 that enables banks to release certain information to law enforcement concerning their customers’ accounts when they suspect that the customer may be the victim of illegal schemes such as scams, fraud or elder abuse. It was deemed important to provide immunity from liability for such a release, in cases where the information was relevant to actual or suspected illegal activities with accounts owned by senior citizens and vulnerable adults. The underlying concern had been the risk of liability for violation of the customer’s privacy rights. Click here to read the preamble and the first three sections of the Act, N.J.S.A. 17:16T-1 to 4.NJSA 17.16T-1
NJSA 117.16T-2 NJSA 17.16T-3 Release to law enforcement agencies or county adult protective services NJSA 17.16T-4 Liability of financial institutions officers agents or employees
A new Appellate Division published (precedential) decision called Lucca-v-Wells Fargo addressed the question of whether the statute just described above gives the bank has an affirmative duty to report a series of transactions by an elderly customer to the authorities for investigation. The case involved an 82 year old customer who wired a total of $330,000 to unknown persons who had persuaded her to repeatedly send them money. She did not know their identities. 23 transfers were involved, and although the bank’s personnel had suspicions about what was going on, the bank did not report the situation to either adult protective services or law enforcement. There was no finding of bad faith on the part of the bank. However, the court held that the statute did not impose an affirmative duty to report. The statute was held to have a specific focus — immunity from liability. In the absence of mandatory reporting obligations, the bank could not be held liable for the failure to report. Although some states do have mandatory reporting of suspected fraud, abuse and neglect of the elderly and vulnerable adults, New Jersey’s reporting is voluntary. MandatoryReportingProvisionsChart.authcheckdam
For a fascinating story about vigorous prosecution in a case of elder abuse, and ideas and innovations in law enforcement efforts to deal with these hidden abuses, read the spring 2014 issue of Experience Magazine, published by the ABA (American Bar Association) Senior Lawyer Division, click here: called “The Case for Specialized prosecutors.”
Call us for legal advice and representation and strategies to protect vulnerable adults whom you are concerned about …………..732-382-6070