Public Guardian and Trustee prevails in Court as Judge Orders Power of Attorney to Repay Over $247K for Mismanagement of Mother’s Finance

Public Guardian and Trustee prevails in Court as Judge Orders Power of Attorney to Repay Over $247K for Mismanagement of Mother’s Finance

Case: Public Guardian and Trustee v. Snelgrove et al., 2024 ONSC 6892 (CanLII)

The Public Guardian and Trustee (PGT) filed an application seeking reimbursement of $256,073.50 from Jason Snelgrove for misappropriating funds from his mother, Loreen Snelgrove, from January 1, 2019, to March 12, 2024. Loreen, a 76-year-old woman suffering from dementia, was unable to manage her own finances, and Jason had been appointed as her attorney under a Power of Attorney for property in May 2017. Despite being given the opportunity to provide evidence of his financial management, Jason failed to provide a full accounting of the money spent, claiming he was unaware of the need to keep records. As a result, the court ordered Jason to repay the PGT the amount of $247,284.22 on behalf of Loreen.

THE FACTS

Jason was appointed as the attorney for property for his mother, Loreen, under a Power of Attorney, which gave him the responsibility to manage her financial affairs due to her cognitive impairment. As an attorney, Jason was obligated to act in Loreen’s best interests, maintain proper records, and provide a full accounting of her financial transactions. However, Jason failed to fulfill these duties by not paying Loreen’s long-term care fees and allowing her bank account to fall into overdraft. Furthermore, he withdrew funds from her account without providing receipts or documentation to prove that the expenditures benefited Loreen.

An investigation by the Public Guardian and Trustee (PGT) revealed numerous questionable transactions, including 34 cheques from Loreen’s account between January 2022 and December 2023. These included large sums of cash and payments made directly to Jason, such as a cheque for $1,600 marked “Jason’s trip” and $1,000 for “Christmas Money for kids.” Jason failed to explain these withdrawals, and he admitted to not keeping proper receipts or records, though he claimed ignorance of his responsibilities as an attorney for property. He also argued that due to his financial struggles, including working at minimum wage and facing criminal charges, he could not afford to repay the funds he took from Loreen’s account. Additionally, he contended that as a joint account holder with Loreen, he had the right to withdraw money as needed, but the court rejected this argument, emphasizing that a fiduciary relationship overruled any personal claims on the funds.

The court found that Jason had indeed breached his fiduciary duties and owed Loreen $247,284.22 for unaccounted expenses. While the court accepted some of the expenses, such as a monthly $1,500 payment for 22 months, a foreign exchange withdrawal for medical fees, and withdrawals for long-term care, the majority of his expenditures lacked proper documentation. Despite Jason’s financial difficulties, the court ruled that he was still responsible for repaying the funds and awarded $5,000 in costs to the PGT for its successful application.

FIDUCIARY DUTY

The key lesson from this case is the importance of fiduciary responsibility, especially when managing someone else’s financial affairs. As an attorney for property, Jason had a legal and ethical obligation to act in the best interests of his mother, Loreen, by maintaining clear records, providing proper accounting, and ensuring that funds were used solely for her benefit. Failing to do so, particularly by not keeping receipts and providing insufficient evidence of spending, can result in significant legal and financial consequences. The case underscores the need for transparency, accountability, and a diligent approach when handling another person’s finances, especially when they are vulnerable.

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