Registered Broker Admits Stealing From 73-Year-Old Client
Allegedly Convinced Client To Open Joint Account
Unauthorized Withdrawals Over Two-Year Period
Fraud against older investors by their financial advisors and brokers has become an all too frequent occurrence in recent years. Unscrupulous advisors use an older client’s memory problems, loss of cognition, or inattention to exploit older people by making unauthorized trades or just outright theft of funds. Older people tend to be more trusting and there are those who are ready to exploit that trust to their own advantage. Activity in a brokerage account may go unnoticed too. If a senior is unable to review his or her account statements, and no one else is reviewing them on their behalf, an advisor or broker may get away with such fraudulent activity for years. Evans Law Firm, Inc. represents victims of financial elder abuse here in San Francisco and through California at the hands of a financial advisor, insurance agent, caregiver, trustee, stock broker, person acting with a Power of Attorney for you, or any other individuals or businesses. If you or a loved one is a victim of financial elder abuse here in San Francisco or elsewhere in California, call our lawyers today at (415)441-8669.
Financial Advisor’s Admitted Theft
One recent civil and criminal case of exploitation of an older client illustrates what can happen if no one is monitoring an older person’s account. According to the U.S. Department of Justice (“DOJ”), starting in 2015, a registered broker provided investment services to a 73-year-old widowed client. The client had at least five investments accounts with the broker, according to the DOJ, and within three years of the start of the relationship the broker convinced the victim to open a joint bank account with him. Then, for the next two years, according to the DOJ, the broker transferred more than $668,000 from the victim’s investment accounts into the joint bank account and, without the victim’s knowledge or authorization, withdrew more than $621,000 in cash from the bank account for his personal use. The broker’s employer fired him fired him when the charges surfaced. A civil financial elder abuse and fraud complaint for $1 million against the broker and his employer settled. In the DOJ criminal prosecution the broker pled guilty to one count of wire fraud in federal court and is scheduled to be sentenced in August. He faces up to 20 years in prison.
Protect Yourself From Financial Elder Abuse
The U.S. Securities and Exchange Commission and the DOJ have focused on protection of senior investors from this kind of fraud over the last few years. If you are a family member of an older loved one the best way to protect them is to stay involved in their lives and financial affairs and monitor all bank and investment accounts on a monthly basis. Accompany them on any business meetings so that they are not sold an unsuitable investment or insurance product under the pressure of a broker or agent or based on false promises of big returns. Take a look at government resources that can help you protect them too. Investors can find additional information about how to protect their investments at Investor.gov. The SEC’s Office of Investor Education and Advocacy 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 suspect any financial elder abuse or theft by a financial advisor, the elder abuse, call elder counsel for help.
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 San Francisco or elsewhere in California contact at (415) 441-8669, or by email at <a href=”mailto:firstname.lastname@example.org”>email@example.com</a>. Ingrid will pursue all remedies available to injured seniors against all those responsible for the injury. Remedies include restitution (getting your money back), rescission (undoing invalid contracts), damages, and awards of attorneys’ fees and expenses for bringing your case in certain circumstances.
 Evans Law Firm, Inc. is not involved in the case in any way.