Ontario Court Removes Power of Attorney, Appoints Public Guardian and Trustee After Brother Misappropriates Over $169,000 from Elderly Man

Ontario Court Appoints Public Guardian and Trustee as Permanent Property Guardian for Elderly Man After Brother’s Financial Misconduct

Case: Public Guardian and Trustee v. Hara, 2025 ONSC 145 (CanLII),

The Public Guardian and Trustee (PGT) applied to be appointed as the permanent guardian of property for 91-year-old Fumio Hara, who has severe dementia and resides in long-term care.

Fumio’s Power of Attorney (PoA) named his brothers, Gerald and Katsushi Hara, but Katsushi had not acted since 2022 due to distance and health issues, leaving Gerald in sole control.

Gerald misappropriated significant funds from Fumio’s accounts, including over $169,000 in unexplained withdrawals and the depletion of a $112,706.81 retirement fund.

Unauthorized expenses included $4,436.78 at a strip club, other personal charges, and a failure to pay Fumio’s long-term care fees, which resulted in arrears.

Gerald took out a $106,000 mortgage on Fumio’s condo and attempted to sell it, but the PGT intervened and secured the remaining $523,238.87 from the sale.

Gerald admitted to taking the money, claiming he was entitled as a future estate beneficiary, but provided no legal justification.

The court found strong evidence of misconduct, removed Gerald as PoA, and appointed the PGT as Fumio’s permanent property guardian due to the absence of any willing family members.

Gerald was ordered to pay the PGT’s legal costs of $11,682.51 on a substantial indemnity basis.

The court’s endorsement does not explicitly state that the Public Guardian and Trustee (PGT) is suing Gerald Hara to recover the misappropriated funds. However, the PGT has secured $523,238.87 from the sale of Fumio’s condo, which will be used for his care.

Given the substantial amounts Gerald took—over $169,000 in withdrawals, the depletion of Fumio’s retirement fund, and unauthorized credit card expenditures—the PGT may take further legal action to recover those funds. The next steps could involve a separate civil lawsuit or an application to compel Gerald to account for and return the money.

If the PGT intends to pursue recovery, it may:

• Demand an accounting and repayment from Gerald.
• Initiate legal proceedings for breach of fiduciary duty and unjust enrichment.
• Refer the matter for potential criminal investigation.