Recourse Against a Rogue Agent: How to Spot, Stop, and Manage Bad Acts of a Legal Agent in North Carolina

Recourse Against a Rogue Agent:

How to Spot, Stop, and Manage Bad Acts of a Legal Agent in North Carolina

Attorney Jane Dearwester

As estate planning attorneys, we regularly advise our clients to have a General Durable Power of Attorney (GDPOA) in place for a variety of reasons. Some of the benefits of having a GDPOA are:

Avoiding costly and contentious guardianship proceedings
Being able to choose someone you trust to manage your financial and legal affairs
Allowing for immediate management of affairs
Providing peace of mind

However, we also handle contested cases where an agent has gone rogue, and has either stolen assets of the principal or exploited the principal and their assets by using the powers enumerated in the GDPOA document for their own benefit, and to the detriment of the principal.

Principal Comes First

As the principal of a GDPOA, your wishes and your best interest are paramount and should guide your designated agent’s acts on your behalf. North Carolina General Statutes Chapter 32C governs power of attorney, and the statute was updated extensively in 2018. After you appoint a legal agent to act on your behalf, you should continue to monitor your accounts, real estate portfolio, and other assets to make sure there are no mysterious or unauthorized transactions.

If you suspect that your agent or the agent for a family member is going rogue, the principal can immediately revoke the GDPOA and strip all power from the agent to act on behalf of the principal. If the original GDPOA was recorded, the revocation of the GDPOA must also be recorded and formally served upon the agent pursuant to N.C.G.S. §32C-1-116 to hold an agent accountable for their bad acts.

Under this statute, a family member or third party can petition the Clerk of Court for various types of relief. For example, a person can seek relief from the Court asking for the agent to provide an accounting of all acts performed on behalf of the principal or may petition for the agent to be removed if they are acting outside the scope of the GDPOA or not in the best interest of the principal. The statute allows for an interested person to question any act made by the agent on behalf of the principal, or to have Court oversight on acts committed that may be outside the authority of the agent.

What Happens to Rogue Agents?

Acts of a rogue agent may also be subject to criminal prosecution. Pursuant to N.C.G.S. §14-112.2, exploitation of an elderly or disabled person in North Carolina is a felony, depending on the value of the assets taken. In order to initiate a criminal prosecution, you must file a police report for theft of the assets and give all appropriate documentation to law enforcement personnel.

If an agent is found by the Clerk of Superior Court to have acted outside his/her authority or not in alignment with the best interest of the principal, the Court can

(1) enjoin the agent from further acting to the detriment of the principal;

(2) direct the agent to pay money or restore property to the principal;

(3) order the agent to provide an accounting;

(4) appoint a special fiduciary to take possession of property in dispute or subject to exploitation;

(5) suspend or remove an agent;

(6) void the act of an agent; or

(7) any other act that is deemed necessary to protect the principal from further exploitation and/or loss due to acts of the agent. See N.C.G.S. §32C-1-117.

Powers of Attorney are Vital

Having a trusted agent in place under a GDPOA is advisable for everyone, but principals and loved ones must stay vigilant to make sure that an agent’s power does not go unchecked. While there is no way to predict if or when an agent may go rogue, there are laws in place in North Carolina to protect principals – especially those who are elderly and/or disabled – from financial exploitation from someone in their inner circle.

McIntyre Elder Law Can Help

A General Durable Power of Attorney is an important safeguard for managing your affairs, but it must be used with care and oversight. If an agent misuses their authority, North Carolina law provides strong remedies to stop financial exploitation, recover assets, and hold the agent accountable. Staying proactive—through regular monitoring, legal guidance, and swift action when misconduct is suspected—ensures your wishes and well-being remain fully protected.

Contact Us Today

📍 Offices in Shelby, Charlotte, and Hendersonville
📞 Call us at 1-888-999-6600
🌍 Visit our website: www.mcelderlaw.com

Don’t wait until it’s too late—take control of your future today!