Many Victims Lose Retirement Savings
Other Victims Have Homes At Risk Of Foreclosure
Advisor’s Abusive Scheme Continued For Years
Financial elder abuse takes various forms and in many cases can be financially devastating for seniors; financial elder abuse also takes a toll on a senior’s health with victim’s of financial elder abuse dying sooner than those who are not financially abused according to studies. Financial elder abuse can be limited to isolated transactions exploiting particular elderly victims (much caregiver fraud falls in this category) or the financial abuse can be a largescale fraud striking numerous elderly victims. As instances of this largescale financial elder abuse, seniors may be targets of Ponzi schemes, where money collected from new investors is used to pay existing investors, and there really is no actual investment of funds. Such schemes violate securities laws and, when the victims are seniors, also constitute financial elder abuse and may involve other crimes. See Penal Code § 368 and Cal. Welf. & Inst. Code § 15610.30 (definition of financial elder abuse). Evans Law Firm, Inc. can represent you if you lose money in a Ponzi scheme or any other type of securities fraud or financial elder abuse here in Marin or elsewhere in California. If you have, call our lawyers today at (415)441-8669. Our toll-free number is 1-888-50EVANS (888-503-8267).
Recent Sentencing In Ponzi Scheme Case
An unlicensed “investment advisor” from was recently sentenced today in federal court to 75 months in prison for fraud in connection with his scheme to defraud investors. “It is heartbreaking to read the victim statements describing how their lives have been dramatically altered – no retirement, no funds to care for disabled children, in one instance a victim’s home placed at risk of foreclosure,” said U.S. Attorney Nick Brown. “From the mid-1990s until 2021, [defendant] led his victims – mostly friends and family members — to believe that he was successfully investing their funds for retirement. He sent fake statements showing significant gains. In truth, since at least 2013, the investment fund was insolvent and losing value, and Mr. Burgess took more than $1 million in fees for his own benefit.” As the financial picture worsened, defendant allegedly paid off earlier investors with money from new investors –a classic Ponzi scheme. Speaking in court today, one elderly victim said defendant is a “pathological liar.” Another wrote to the court “He is a con, nothing more than that in my eyes.” A 91-year-old victim wrote “He needs to be held accountable for the many lives he has shattered.”
Watch Out For “Red Flags” Of Ponzi Schemes
Here are some of the classic “red flags” of Ponzi schemes like the one involved in the reported case:
- High returns with little or no risk. Be especially suspicious of any “guaranteed” investment opportunity.
- Overly consistent/guaranteed returns. Investments tend to go up and down over time. Be skeptical about an investment that regularly generates positive returns regardless of overall market conditions.
- Unregistered investments. Ponzi schemes typically involve investments that are not registered with the SEC or with state regulators. Registration is important because it provides investors with access to information about the company’s management, products, services, and finances.
- Unlicensed sellers. Federal and state securities laws require investment professionals and firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.
- Issues with paperwork. Account statement errors may be a sign that funds are not being invested as promised.
- Difficulty receiving payments. Be suspicious if you don’t receive a payment or have difficulty cashing out. Ponzi scheme promoters sometimes try to prevent participants from cashing out by offering even higher returns for staying put.
If you or a loved one has been the victim of a Ponzi scheme or other form of financial elder abuse in Marin or elsewhere in California contact Ingrid M. Evans at Evans Law Firm, Inc. at (415) 441-8669, or by email at <a href=”mailto:firstname.lastname@example.org”>email@example.com</a>. Our toll-free number is 1-888-50EVANS (888-503-8267).
 Evans Law Firm, Inc. was not involved in the case in any way.