FAQs On Investment Advisor Fraud On Elderly Clients

ATTORNEY NEWSLETTER

Are seniors targeted for fraud by dishonest investment advisors?

Yes.  Seniors are often targets of various kinds of investment fraud or securities.  It is especially dangerous if a senior gives his or her financial advisor a power of attorney.  Never, ever give a power of attorney to an advisor, caregiver, or other employee.

Which laws does this kind of fraud violate?

Several.  Investment fraud schemes violate securities laws and, when the victims are seniors, also constitute financial elder abuse and may involve other crimes, including federal and State prohibitions of securities fraud.  See Penal Code § 368 and Cal. Welf. & Inst. Code § 15610.30 (definition of financial elder abuse).  Any taking of a senior’s property, or theft, as in the recent case discussed below, is financial elder abuse.

California broadly defines what constitutes financial elder abuse:

(a) “Financial abuse” of an elder or dependent adult occurs when a person or entity does any of the following:

(1) Takes, secretes, appropriates, obtains, or retains real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.

(2) Assists in taking, secreting, appropriating, obtaining, or retaining real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.

(3) Takes, secretes, appropriates, obtains, or retains, or assists in taking, secreting, appropriating, obtaining, or retaining, real or personal property of an elder or dependent adult by undue influence, as defined in Section 15610.70.

Cal. Welf. & Inst. Code § 15610.30.

Evans Law Firm, Inc. can represent you if you lose money as a result of investment fraud or securities fraud or financial elder abuse in the San Francisco Bay Area or anywhere else  in California.  If you have, call our lawyers today at (415)441-8669.  Our toll-free number is 1-888-50EVANS (888-503-8267).

Is there a case example?[1]

Yes.  In one recently reported case, a financial advisor was sentenced to seven years in state prison for stealing more than $300,000 from an elderly client who had entrusted him with helping to manage her financial affairs.  According to documents filed in the case and evidence at trial, defendant worked as a registered financial advisor who contracted with the victim to manage her assets after she received an inheritance from her late brother. The advisor, however, never obtained his employer’s authorization to provide financial advisory services to the victim and failed to register the victim as a client, as required by the Financial Industry Regulatory Authority.

In June 2017, the advisor obtained a durable financial power of attorney from the then-90-year-old victim. Evidence presented at trial showed that, rather than managing the victim’s assets and ensuring her long-term financial stability, the advisor stole more than $300,000 from the victim through a series of ATM withdrawals, bank transfers, and other transactions. He depleted the victim’s accounts in less than two years, failed to meet her financial obligations, neglected her care, and later diverted her Social Security benefits for his own personal use.

Contact Us

If you or a loved one has been the victim of investment fraud or securities fraud or financial elder abuse in California, contact Ingrid M. Evans at Evans Law Firm, Inc. at (415) 441-8669, or by email at <a href=”mailto:[email protected]”>[email protected]</a>. Our toll-free number is 1-888-50EVANS (888-503-8267).

[1] Evans Law Firm, Inc. was not involved in the case in any way. The State Attorney General announced the sentencing recently.