Before proceeding, please review the  legal disclaimer.

Power of Attorney Abuse in Texas: Legal Penalties & How to Take Action.

A power of attorney (POA) grants someone the legal authority to act on another person’s behalf in financial, medical, or legal matters. However, when this authority is misused, it can lead to serious legal consequences. If someone abuses a power of attorney in Texas, they may face civil lawsuits, financial penalties, and even criminal charges.

Understanding Power of Attorney Abuse

Power of attorney abuse occurs when the agent (the person granted authority) misuses their power for personal gain, neglects their duties, or acts against the best interests of the principal (the person who granted the POA).

Common Forms of Power of Attorney Abuse:

• Stealing or misusing funds from the principal’s accounts
• Unauthorized property transfers or asset sales
• Changing the principal’s estate plan without consent
• Making fraudulent medical decisions
• Refusing to act in the principal’s best interest
• Forging signatures or misrepresenting the principal’s intentions
• Gifting assets to themselves or family members without authorization

Civil Penalties for Power of Attorney Abuse

If an agent abuses a POA, they may be held civilly liable for damages. Legal consequences can include:

1. Financial Restitution

The court may order the agent to repay any misappropriated funds or return stolen assets.

2. Breach of Fiduciary Duty Lawsuits

Agents have a legal duty to act in good faith and in the principal’s best interest. If they violate this duty, they can be sued by the principal or their family.

3. Court-Ordered Removal

If abuse is proven, a court can revoke the power of attorney and appoint a new representative.

4. Punitive Damages

In cases of severe misconduct, courts may impose additional financial penalties to punish the wrongdoer and deter future abuse.

Criminal Penalties for Power of Attorney Abuse in Texas

In Texas, power of attorney abuse can lead to criminal charges, depending on the severity of the offense. Potential charges include:

1. Theft (Texas Penal Code § 31.03)

If an agent steals money or property, they may face theft charges, which vary based on the amount stolen:

• Less than $2,500 – Misdemeanor (up to 1 year in jail)
• $2,500 to $30,000 – State jail felony (6 months – 2 years in prison)
• $30,000 or more – Felony with harsher penalties

2. Financial Exploitation of the Elderly (Texas Human Resources Code § 48.051)

If the principal is a senior citizen (65+) or a disabled adult, abusing a POA for financial gain can result in felony charges.

3. Forgery (Texas Penal Code § 32.21)

Altering legal documents, such as changing wills or property titles without consent, is a felony and carries severe penalties.

4. Fraud (Texas Penal Code § 32.45)

Misrepresenting information or making fraudulent financial transactions under a POA can lead to fraud charges, resulting in fines and imprisonment.

Case Studies: Power of Attorney Abuse in Texas

Case 1: Elderly Exploitation Through POA

A Houston man was convicted after using a POA to transfer his elderly mother’s home into his name without her knowledge. The court found him guilty of financial exploitation, and he was sentenced to five years in prison and ordered to return the property.

Case 2: POA Abuse in Estate Management

A woman acting as her father’s POA sold his rental properties and used the proceeds for personal expenses. The court ruled that she had breached her fiduciary duty and ordered her to pay back $500,000 to the estate beneficiaries.

How to Report Power of Attorney Abuse in Texas

If you suspect POA abuse, take the following steps:

1. Gather Evidence

Document suspicious transactions, missing funds, or unauthorized decisions made by the agent.

2. Contact an Estate Attorney

A probate or elder law attorney can help assess the situation and take legal action if necessary.

3. File a Complaint

You can report financial exploitation or abuse to:

• Texas Adult Protective Services (APS) for elder abuse
• The Texas Attorney General’s Office for financial fraud
• Local law enforcement if criminal activity is suspected
• The Texas Department of Family and Protective Services for vulnerable adult abuse

4. Request Court Intervention

If necessary, a court can revoke the POA, recover stolen assets, and prosecute the abuser.

Defenses Against Power of Attorney Abuse Charges

While many POA abuse cases involve intentional misconduct, some agents are wrongfully accused. Common legal defenses include:

• Lack of intent – The agent did not knowingly misuse funds.
• Principal’s consent – The principal agreed to the financial transactions.
• Clerical errors – Mistakes in paperwork or accounting led to misunderstandings.
• Lack of evidence – Insufficient proof of wrongdoing.

In cases where POA actions are questioned, seeking legal representation is crucial to defending against criminal or civil liability.

Preventing Power of Attorney Abuse

To minimize the risk of POA abuse, consider the following safeguards:

• Choose a trustworthy agent with a strong record of financial responsibility.
• Include oversight mechanisms (e.g., requiring two agents to sign off on major decisions).
• Regularly review financial statements to monitor transactions.
• Consult with an estate attorney to draft clear limitations on POA authority.
• Require periodic reporting of financial transactions to a third party.

Conclusion

Power of attorney abuse is a serious offense in Texas, with both civil and criminal consequences. Victims of POA abuse can pursue legal restitution, financial recovery, and even criminal prosecution against the wrongdoer. If you suspect POA abuse or need legal guidance, The Lange Firm can help protect your rights and assets.

Understanding your legal rights is crucial in preventing POA misuse. If you or a loved one needs assistance with power of attorney matters, contact an experienced attorney today.