How to Recognize Elder Financial Abuse
Ex-LPL Financial Broker Bradley Goodbred Is In Trouble For Alleged $1.3M Elder Financial Abuse
How Senior Investors Can Pursue Damages Over Their Investment Losses
The US Securities and Exchange Commission (SEC) recently filed charges against former LPL Financial broker Bradley Allen Goodbred. The ex-Chicago financial advisor, who was barred from the Financial Industry Regulatory Authority (FINRA) in 2021 for not cooperating in the self-regulatory organization’s (SR0’s) probe, is accused of stealing $1.3M from an older client with dementia.
Earlier this year, LPL settled for $1.2M a FINRA lawsuit filed by a customer alleging that Goodbred induced her to invest in fraudulent, unregistered securities. He also purportedly had her appoint him as her power of attorney.
The Commission contends that Goodbred solicited one of his clients, now in his late nineties, for money to supposedly invest in real estate investment trusts (REITs). To facilitate some of this, the older investor had to sell securities in her account and send the proceeds to the ex-LPL broker at his alleged recommendation. Unfortunately, rather than use this senior investor’s money by making REIT investments, Goodbred allegedly misappropriated nearly $1.3M of her money and only repaid around $450K.
While regulatory proceedings are one way that a rogue financial advisor can be held accountable, if you or someone you love was a victim of elder financial abuse, your best bet for maximizing your recovery is to go pursue damages from the broker and/or their broker-dealer in Financial Industry Regulatory Authority (FINRA) arbitration.
Shepherd Smith Edwards and Kantas (investorlawyers.com) represent older investors and their families in pursuing damages from the brokerage firms whose financial advisors engaged in broker misconduct, negligence, or fraud. Unfortunately, Goodbred is not the only ex-LPL Financial broker to face allegations of elder financial abuse in recent years.
Why Are So Many Older Investors Vulnerable to Financial Abuse By Unethical Brokers?
Age-Related Health Issues
There are older investors who may suffer from age-related issues, including dementia, diminished cognitive thinking, mental impairment, or physical conditions. Any of this can impact the investor’s ability to make sound decisions about their finances. This can make it easier for bad brokers to take advantage of them.
Senior investors may have accumulated wealth or savings over the years, which means they have a nest egg that rogue brokers might try to exploit. Churning, in which a financial advisor excessively trades in a customer’s account to earn more commissions, is one tactic often used.
An elderly retiree who has been the victim of broker fraud might be too embarrassed or ashamed to admit that they were taken advantage of, which can make pursuing financial recovery even harder. Emotional isolation is also a reason that a senior investor might not want to report that they were the victim of a crime.
Sadly, elder financial exploitation is one of the most common forms of abuse involving older people. At least one in five Americans over the age of 65 is the victim of financial fraud every year.
Sometimes the perpetrator may even be a trusted family or friend. However, when it is a financial advisor who commits elder investor fraud, a breach of a fiduciary is violated and the broker and their broker-dealer of record may be held liable for damages.
Our Elder Financial Abuse Law Firm Represent Older Seniors and Retirees
Many of our clients are retirees and older investors who were unsuitably recommended investments that were too risky or illiquid for them given their financial goals, health issues, portfolios, and risk tolerance level.
In many instances, the financial advisor did not intend to steal money from their customer. However, their unsuitable investment recommendations, misrepresentations, omissions, or concentration of customers’ funds in risky investments played a part in causing serious investor losses.
Broker-dealers should be held liable when one of their financial advisors causes a customer to suffer losses. FINRA arbitration is the forum where investors can try to resolve their disputes with these types of firms.
To speak with one of our seasoned elder investment fraud attorneys, call Shepherd Smith Edwards and Kantas at (800) 259-9010 today.