Financial Elder Abuse -Taking Advantage of Elderly Investors
The economic recession has put a spotlight on a growing trend of financial elder abuse. Often discovered in broker fraud investigations, the notable increase in cases is probably a combined result of greed and the bad economy. The Financial Industry Regulatory Authority (FINRA), formerly the National Association of Securities Dealers (NASD), is an independent regulator for securities firms whose chief role is to protect investors. According to FINRA, the number of new arbitration cases filed for investor securities fraud increased by over 70% in 2009.
FINRA protects individuals when they believe their financial broker has recommended unsuitable or risky investments. The U.S. Securities and Exchange Commission (SEC) works together with FINRA offering education and information on brokers and firms - viewing the protection of senior investors a top priority.
For example, in 2009 FINRA awarded $1.6 million to a 95 year old investor who lost all his assets including his cash reserves, insurance money and home equity. The FINRA also protects large classes of investors, recently fining Merrill Lynch $500,000 and requiring reimbursement of over $2 million to customers overcharged for particular investments.
FINRA has the authority to bar brokers found guilty of fraud. A broker who induced an elderly client to invest in a high-risk, speculative investment was permanently barred from dealing in securities by the FINRA in 2009. The 90 year old gentleman died before his daughter discovered the fraud, but she was able to secure a settlement.
Before you invest, check out the background of the broker and their firm. With the SEC, FINRA offers a Broker Check Tool that allows you to research the professional backgrounds of firms and brokers.
Our firm is committed to helping elderly clients who have been victims of financial elder abuse recover lost assets due to fraud or mishandling of funds by financial brokers. We are equipped to fully prosecute allegations of financial elder abuse and broker fraud which often involve time-consuming investigation and arbitration. If you have any questions about financial fraud, please give us a call - we are ready to answer any questions you may have about elder financial abuse.
