When Stockbroker Fraud Involves Elder Abuse

Senior citizens may rely more and more on professionals to help manage their affairs, but doing so may open them up to stockbroker fraud, which in such cases could also amount to elder abuse. Some unethical stockbrokers will commit stockbroker investment fraud against elderly clients, putting the clients not only at risk of losing their money, but also in a position where that money cannot be regained. A recent incident of stock fraud highlights the issue.

According to KOMO News (12/27/12), a former stockbroker has been sentenced to five years in jail for stealing more than $1 million from an elderly man who was also his client. Prosecutors alleged the stockbroker was an investment advisor for the client, and was later given power of attorney over the man. Among the money that was reportedly stolen were more than $650,000 from a Charles Schwab account, almost $600,000 in checks written from the client’s accounts and almost $250,000 in checks for estate services after the client died.

The stockbroker’s registration was revoked in 2009. So far, according to prosecutors, none of the stolen money has been returned.

Elderly investors are at risk of coming up against unethical stockbrokers who will steal their clients’ money for their own purposes. In some cases, they do so by manipulating the client into giving them power of attorney, gaining access to vital accounts and transferring money to themselves, spending it on luxurious items and trips.

Full Article and Source:
When Stockbroker Fraud Involves Elder Abuse


5 Responses to “When Stockbroker Fraud Involves Elder Abuse”

  1. Thelma Says:

    DO NOT give any power or control over your assets to such proessionals!

  2. Connie Says:

    I think people tend to trust their stockbrokers and most of them are fine, but as with everything, one bad apple….

  3. Anonymous Says:

    It's getting so we can't trust anybody anymore, not even our hairdresser!

  4. Attorney Online Says:

    This article is worth to be read, thanks! Would you like to write something to Attorney Blog on Attorney-Online.info ? There is also an attorney directory and every US lawyer can submit contacts there for free. I hope this will be useful for you or some your friends who provide legal services.

  5. Anonymous Says:

    I am a FINRA Arbitration Attorney and have engaged in numerous arbitration actions to recover lost investments for elderly and retired persons who were misled into investments that were inappropriate. I recommend closely reviewing the documentation related to an investment, and getting a second opinion regarding the safety of an investment. if you are currently in an investment that is realizing losses you did not expect, you are welcome to contact my office for an assessment of your rights. Regards,The Law office of Daniel Bakondi(415) 450-0424http://www.danielbakondi.com

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