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Jun 23, 2022 by |

San Francisco Bay Area Financial Elder Abuse Attorneys: SEC Charges Broker With Defrauding Elderly Clients Of More Than $1 Million


Allegedly Defrauded Investors Were Ages 78-94

Promised 13% Return On A Promissory Note

Fraud Allegedly Continued For Five Years

Sales of unsuitable investments to seniors may constitute financial elder abuse.  Largescale pyramid or Ponzi schemes may also target seniors. Statistics show that the older we get the more vulnerable we are to financial fraud, Whatever the form of financial abuse, Evans Law Firm, Inc. represents victims and their families in the San Francisco Bay Area and throughout California.  We pursue all remedies available to the injured senior or his or her family including double damages and payment of attorneys’ fees and costs for having to bring suit to get their money back.  Cal. Probate Code § 859 (double damages); Cal. Welf. & Inst. Code § 15657.5 (mandatory attorneys’ fees and expenses in financial elder abuse cases). Sales of unsuitable investments or other fraudulent investments may also constitute violations of federal law. See Securities Act of 1933, 15 U.S.C. §§ 77a et seq., and Rule 10b-5 under the Securities and Exchange Act of 1934, codified at 17 C.F.R. § 240.10b-5. If you or a loved one is a victim of financial elder abuse by a broker, advisor or other party in the San Francisco Bay Area or elsewhere in California, call our lawyers today at (415)441-8669.  Our toll-free number is 1-888-50EVANS (888-503-8267).

SEC Charges Former Broker With Stealing From Elderly Investors

The U.S. Securities and Exchange Commission (SEC) has recently announced charges against a broker for theft from four elderly clients.[1]  The SEC’s complaint alleges that the former broker solicited $1.2 million dollars from four investors, ages 78 to 94, by claiming that he would invest their funds in two private companies and in a promissory note with a guaranteed 13% annual return. According to the complaint, the promissory note was fake, and the private companies – which did not carry out any real business activities – were created by the broker to facilitate his fraud. As alleged, the broker stole most of the investors’ money, and used a portion of the funds to repay investors in a Ponzi-like fashion.  The SEC’s complaint charges the broker with violations of the antifraud provisions of the federal securities laws. He has agreed to settle with the SEC and be enjoined from future violations of the charged provisions. The settlement is subject to court approval; disgorgement, prejudgment interest and a civil penalty will be determined by the court at a later date.

Protecting Loved Ones From Financial Elder Abuse

The advisor in the reported case was able to get away with his alleged fraud because no one was watching to see where the invested money really went or looking at the elderly customers’ account.  If you are a family member of an older loved one the best way to protect them from the kind of fraud described in the reported case is to stay involved in their lives and financial affairs and constantly monitor all bank and investment accounts.  Trace where any annuity, Social Security or pension benefits are being paid and make sure they are going to your loved one’s account and not being diverted elsewhere.  Keep hard copies of all bank and investment firm records.  You may need them as banks only keep records for seven years.  Closely examine all bills that are being paid directly from any account to make sure they are your loved one’s bills and not the bills of someone else who has given the account information to their own creditors for bill payments. Accompany any older loved one to any business meetings so that they are not sold an unsuitable investment or insurance product or coaxed into signing blank forms or checks under the pressure of a broker or agent. 

Contact Us

Ingrid M. Evans represents victims of financial elder abuse by accountants, bookkeepers, financial advisors, insurance agents, brokers, retirement planners, investment promoters, caregivers, trustees, or other person in the San Francisco Bay Area or elsewhere in California contact at (415) 441-8669, or by email at <a href=””></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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