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Nov 22, 2021 by |

Orange County Financial Elder Abuse Attorneys: SEC Charges Broker With Financial Elder Abuse Of 26 Elderly Clients

ATTORNEY NEWSLETTER

Broker Allegedly Defrauded Seniors Out Of $2.4 Million

Allegedly Offered “Safe” Investments Which Were Fake

Also Allegedly Made Unauthorized Trades

The U.S. Securities and Exchange Commission (SEC) polices financial markets to protect the public from fraud.  The SEC’s Enforcement Division includes a Retail Strategy Task Force that in part focuses on fraud against older investors and prosecutes advisors and brokers for financial elder abuse among other crimes.  Securities violations like misrepresentations in the sale of stock or selling unregistered securities to ineligible investors are also acts of financial elder abuse when the investor is a senior.  See, e.g., Penal Code § 369 and Cal. Welf. & Inst. Code § 15610.30 (definition of financial elder abuse). If you or a loved one is a victim financial elder abuse in Orange County or elsewhere in California at the hands of a financial advisor, insurance agent, stock broker, or any other individuals or businesses, call us today at (415)441-8669.  Our toll-free number is 1-888-50EVANS (888-503-8267).

Broker Charged With Financial Elder Abuse of 26 Elderly Clients

The SEC recently announced charges[1] against a former registered broker and investment adviser for defrauding 26 of his mostly elderly retail brokerage customers and investment advisory clients out of approximately $2.4 million.  According to the SEC’s complaint, the defendant convinced his brokerage customers and advisory clients to invest in what he described as a “safe” investment that would earn a guaranteed minimum yield of 4% per year. As alleged in the complaint, the purported investment did not exist at all, and the broker allegedly stole approximately $1.4 million for his personal use.  According to the SEC the same individual allegedly stole an additional $1 million by making unauthorized sales and withdrawals from his elderly customers’ variable annuities. To cover up his fraud, he allegedly created fake account statements and paid approximately $170,000 in Ponzi-like payments.  The SEC’s complaint charged the broker with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and financial elder abuse crimes. The broker reportedly entered into a pleas agreement which is awaiting court approval.

Protect Yourself From Financial Elder Abuse

Before you ever transact business with a broker check out his license and background on BrokerCheck – Find a broker, investment or financial advisor (finra.org).  The SEC’s Office of Investor Education and Advocacy also encourages senior investors to learn more at the senior investor education webpages on Investor.gov and report any suspicious investment-related activity or schemes using the SEC’s online tips, complaints, and referrals (TCR) system. If you or a loved one has been the victim of financial elder abuse or theft by a financial advisor, we can investigate your case and pursue all remedies available under California law, including an award of your attorneys’ fees and expenses under Cal. Welf. & Inst. Code § 15657.5.

Contact Us

Ingrid M. Evans represents  victims of financial elder abuse by financial advisors, insurance agents, stock brokers, retirement planners, investment promoters, caregivers, trustees, or other person here in Orange County or elsewhere in California.  You can reach her at (415) 441-8669, or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Our toll-free number is 1-888-50EVANS (888-503-8267).

[1] Evans Law Firm, Inc. is not involved in the case in any way.

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