An ex-broker for Wells Fargo and Morgan Stanley has been indicted for fraud. The ex-broker is accused of defrauding an elderly client out of $1.8 million dollars because he forged checks on her accounts. He was a San Francisco based advisor. California securities stockbroker fraud lawyers warn that elderly clients are sometimes taken advantage of by unscrupulous financial advisors.
In this case, the ex-broker is accused of writing checks on an account that he set up for an elderly client, a widow who was 77 years-old at the time. The former broker has pleaded not guilty to the charges, which include money laundering and fraud. Lawyers for the defendant claim that the allegations against their client are false and will be proven so at trial. Wells Fargo and Morgan Stanley are not accused of defrauding an elderly client in this case, or of any other wrong doing associated with this case. Wells Fargo is working with prosecutors, according to a company spokesman. Morgan Stanley claims that most of the wrong doing occurred after the defendant left his position with them and that they are cooperating with federal prosecutors in this case.
The defendant in this case set up a brokerage account and home equity line of credit for the elderly client in 2007 while employed at Morgan Stanley. In 2008, he left the firm and is accused of continuing to forge checks on the accounts through 2011. The forged checks were made payable to the defendants family members, credit card companies, and other entities, according to court documents. The defendant is accused of writing two checks that totaled almost $1.4 million to his girlfriend. The girlfriend then allegedly transferred the money to the defendant. California securities stockbroker fraud lawyers say that defrauding of elderly clients happens on a regular basis.
In March of 2013, the defendant was banned from the securities industry by the Financial Industry Regulatory Authority as a result of an action related to the alleged defrauding of the elderly client. He agreed to settle the case and pay $650,000 in restitution to the elderly victim, but will not admit or deny the conclusions drawn by the Financial Industry Regulatory Authority.
Evans Law Firm, Inc. handles elder abuse, financial elder abuse, physical elder abuse, annuity fraud, consumer fraud class actions, insurance and banking fraud cases. If you think that you have witnessed or are the victim of elder abuse, or financial fraud then contact Evans Law Firm, Inc. at 415-441-8669 for a free and confidential consultation, or email us at firstname.lastname@example.org