Unethical behavior by brokers has lead to an increase in the number of financial elder abuse incidents occurring in the United States. In a case that illustrates the growing problem, a 91 year old senior citizen recently discovered that the financial advisor she trusted mismanaged her assets and put a portion of her money into non-liquid investments. Santa Clara County elder abuse lawyers say that they are seeing more cases of securities and stock broker fraud that are financial elder abuse.
In this case, the 91 year old senior citizen was referred to a financial advisor by a family member and the financial planner chose her investments for her. About one year later she noticed that, despite the fact that the stock market was surging upward, she had zero gains in her investment portfolio. At that point, she decided to switch financial advisors. After that she discovered the financial elder abuse that had taken place at her expense. Her financial advisor had taken a portion of her money and put it into a real estate investment trust that could not be liquidated without substantial penalties. Her funds could not be withdrawn for another twelve years without penalty. The senior citizen says that the financial advisor never explained the investment to her and never told her that she would not be able to access the funds if she needed them without paying a penalty. The financial advisor claims that he told her all about the investment and that she agreed to everything. The penalty fees, plus the financial advisors commission would negate a large portion of her gains. Santa Clara County elder abuse lawyers say that this type of financial elder abuse is common and that senior citizens should be careful when choosing a financial advisor.
The Financial Industry Regulatory Authority and state regulators are cracking down on nontraditional and illiquid investments, such as the one that the financial advisor sold to the 91 year old senior citizen. State regulators have settled similar cases against well-known firms who have agreed to pay millions of dollars in restitution to victims and fines. Regulators reported that in the real estate investment trust cases, many clients did not know what they were investing in. Santa Clara County elder abuse lawyers say that there are many cases where financial advisors take advantage senior citizens for the sake of a commission. Brokers are selling these products with a large front end commission, despite the fact that non liquid investments are dubious investments for elderly customers. Securities and stock broker fraud against senior citizens is financial elder abuse.
Attorneys at Evans Law Firm, Inc. will continue to thoroughly investigate and prosecute securities and stock broker fraud, and financial elder abuse cases. 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 by a life insurance company, bank or individual then, contact the Evans Law Firm at 415-441-8669 for a free and confidential consultation, or email us at email@example.com