Theft or Fraud?

I don't know if this in an appropriate forum for this question, but I'm at a loss as to where to turn.

Received a call today from 73 year old uncle (life-long bachelor) informing that he hadn't had electricity in 11 days, that he hadn't eaten in a week, and that he would lose his house tomorrow morning if past-due loan is not paid. First thought was: How did this happen? He received a probate settlement of more than $350,000 barely two years ago, in addition to the house which was paid for, and was worth than everyone in the rest of the family combined.

He fell in with a 44 year old woman, who, basically, has taken everything he had. He would give her money to pay his bills, and she would simply keep it; therefore, most of his bills are now in default. In one month alone, he wrote her checks totaling nearly $250,000, allegedly for the purchase and improvement of a home, but his name is not on any of the documentation. She's run up two credit cards in his name, and he took a loan on his home to give her more money. There is more, but it's just more of the same. And, of course, now that he is in such dire straights, she "doesn't have the money" to help him out, not even to allow him to stay with her temporarily.

It should be noted that he, for want of a better word, 'willingly' gave her the money. However, it should also be noted that he is by far not the smartest nor most responsible of human beings, bordering on ignorance and incompetency. He still doesn't see that she is just using him, and says she has promised to repay the debt when she gets her "lawsuit settlement". (He is COMPLETELY in the dark when it comes to this woman.)

My question is three-fold. 1) Is there any way to stop this woman without his assistance, up to and including trying to have him declared incompetent? 2) Is there any legal way to confront her (without his help) if he is declared incompetent? and 3) If he changes his mind about 'going after' her, is she actually liable for any criminal activity??

My gut tells me that it's a case of "so sorry you old fool", but I'm hoping coersion on her part may make her somehow liable.

He lives in Kentucky, if that makes any difference.

Thanks for your time and assistance.