When a loved one loses mental capacity, managing their financial affairs becomes a matter of both legal formality and deep personal trust. This is the purpose of a deputy – someone appointed by the Court of Protection to act on behalf of a person who can no longer make decisions for themselves.
But what happens when that trust is broken?
At Wolferstans, our Court of Protection team was recently instructed to step in following serious concerns about a former deputy’s handling of a vulnerable person’s finances. Thanks to swift legal action and the structured safeguards of the deputyship system, we were able to recover the full sum of misappropriated funds and ensure that the client’s affairs are now being managed securely and professionally.
A Breach of Duty
Our client (“P”) is an elderly woman living with dementia. Initially, her son had been appointed as her deputy, a role that gave him authority to access and manage her funds. However, another family member had developed serious concerns about his conduct in the role and reported their misgivings to the Office of the Public Guardian (OPG), prompting a formal investigation.
When the OPG contacted P’s care home, it learned that the deputy had recently informed them that he was no longer able pay her care fees, which in our experience, is often one of the earliest indicators of potential financial abuse. Further enquiries duly revealed that around £21,000 had been withdrawn or misapplied from P’s accounts.
When asked to provide financial documentation which would explain this discrepancy, the deputy admitted to having taken the money. Furthermore, the OPG also became aware during its investigation that the deputy had been detained under mental health legislation, which added complexity to the ongoing safeguarding concerns.
Legal Action and Recovery
The OPG applied for the appointment of a ‘professional panel deputy’ to take over the management of P’s affairs. This is generally an experienced and regulated individual with specialist knowledge of managing such complex matters, and in this instance, it was Sam Buckthought of Wolferstans, supported by Abbie Taylor, who was appointed as deputy for P’s property and finances.
Sam’s immediate priority was to stabilise the situation and ensure that P’s financial needs were being met. Alongside managing her day-to-day affairs, Abbie undertook a recovery process to reclaim the funds that had been misappropriated.
Thanks to prompt legal action and close engagement with the former deputy’s representatives, the full £21,000 was recovered and paid directly to the local authority, reducing P’s outstanding care fee debt.
Sentencing and Consequences
The former deputy was charged with fraud by abuse of position, which is a serious offence under the Fraud Act 2006. He pleaded guilty and was subsequently sentenced to 18 months’ imprisonment.
This sentencing reflects the gravity with which the courts view the abuse of power in deputyship roles. While outcomes can vary depending on the scale of the fraud and any mitigating circumstances (such as mental health considerations), custodial sentences in the range of 12 to 36 months are not uncommon for offences involving a breach of trust and deliberate financial harm.
What Can be Learned from this Case?
Cases like this highlight the importance of vigilance and transparency when someone is managing another person’s finances:
- Deputyship is a legal responsibility, not just a family role. Deputies must act in the best interests of the person they represent, keeping accurate records and always prioritising their welfare.
- Warning signs often surface in practical issues. Unexplained non-payment of care fees, reluctance to provide financial records, or sudden changes in spending can all point to deeper problems.
- The Office of the Public Guardian acts on concerns. Anyone, from family, friends, carers or professionals, can raise concerns with the OPG, which has statutory powers to investigate and intervene.
- Professional deputies bring peace of mind. When circumstances are complex or there is a risk of mismanagement, the Court of Protection can appoint experienced panel deputies to ensure proper safeguards are in place.
How Wolferstans Can Help
Our Court of Protection team specialises in managing and safeguarding the affairs of vulnerable clients. Whether you’re worried about a loved one’s current deputy or simply need advice on how to structure long-term financial decision-making, we can guide you with clarity and compassion.
If you’re concerned about financial abuse or need advice about deputyship, contact our specialist team today on 01752 292201 for a confidential conversation.