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Now doesn't remember it. The woman is still going to cash it knowing that my neighbor has been diagnosed with it. Can she do this?


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This sounds like elder fraud, a crime. Call Adult Protective Services and the police. Suggest to the neighbor's relatives or, if she has none, the local probate court (yourself or through a social worker or an attorney such as a member of the local probate bar or a member of the National Academy of Elder Law Attorneys, www.naela.org) that your neighbor may need a conservator or "guardian of the estate" to take charge of her finances.
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Yup elder protective services asap
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If you are her POA, put a stop on the check. Also call the person to let them know not to cash it. Then if they cash it, contact the APS and let them take it from there.
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I noticed you are a neighbor, so not likely the POA. Do you know if she has someone who helps her with finances. That person could be her POA and can take care of the bank business. Do you know what the $10K was for or if there was a promissory note written?
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Understanding that you are a neighbor, and not a relative, can you contact this person's closest relative, and let them know what's happened?

How did you come to find out that this has happened?

If you are very close to this neighbor who wrote the check, are you comfortable enough to confront this person who took her money/check, and tell them that it wasn't right, to expect this vulnerable senior, to give/lend them that kind of money, or Any money, in this situation?

They obviously knew, that the vulnerable person, did not understand what she was doing at the time!

That person asking for and taking that money from her is a crook, and needs to be stopped, but you should not put yourself in harms way, therefore you need back up, like a family member, the police, or APS, to help guide you on how to protect her.

Being that she is just a neighbor, be careful not to become too immersed into her finances, but it is good that you are looking out for her!
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The more I read into this question, the less clear I am. Maybe the friend didn't ask for it and the person said to take it. She promised to pay her back in a few months and has all good intentions. We really need much more information and the woman needs to have her POA involved if there is one.

I was thinking of the different ways we could look at this, depending on the slant of the writing.
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Yankeetalker, I am also curious as how you found out about this?   It is not unusual for a person who has dementia to make up stories.   Or as Jessie above had mentioned, to give away her money or loan it to friends.

Best to find your neighbor's close family and give them a call.   It's time that your neighbor has caregivers or moved in with a family member or to senior living.
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