Top Warning Signs of Senior Investor Fraud that You Need to Be Aware of

Many Older Investors Remain Vulnerable to Securities Fraud 

As a retiree or a senior investor living in the San Francisco Bay Area, there are red flags to look out for that may indicate that you’ve become the victim of senior investor fraud. 

Unfortunately, older investors remain a favorite target of fraudsters eager to take advantage of an elderly customer’s inexperience or health issues while availing themselves of the latter’s retirement funds and other savings. 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our San Francisco securities fraud lawyers work with older investors and their families throughout the Bay Area to help them recover such losses from the brokerage firms that allowed the fraud or negligence to occur and/or their brokers that committed these fraudulent acts. Contact SSEK Law Firm today at (415) 287-0877. 

Top Warning Signs of Senior Investor Fraud 

Below is a list of the most common warning signs that elderly investors should look out for when dealing with a financial advisor or brokerage firm. Many investors in the San Francisco Bay Area suffer investment losses due to fraudulent activity being carried out in their accounts and portfolios. 

• Unusual investment activity in an older investor’s brokerage account.
• Unexpected, unauthorized, or sudden money transfers, withdrawals, or checks cashed.
• A reluctance by a broker or the designated fiduciary to discuss the senior customer’s accounts or financial activities with the customer. 
• Excessive trading in the senior investor’s account. Known as churning, this type of fraud helps brokers make more commissions.
• Investing a retiree’s portfolio in unsuitable and/or highly risky investments, such as private placements, structured notes, and exchange-traded notes. Many older investors tend to be conservative investors and cannot afford to take on much risk. Many senior investors and retirees make it clear that they prefer not to take on any risk at all because this can lead to huge losses. 
• Checks that were written directly by the senior investor to the broker.

When Brokerage Firm Negligence Enables Investment Fraud 

Sometimes, it’s the broker or investment adviser who seeks to exploit an older investor’s inexperience, isolation, or in some cases, cognitive or physical impairments while defrauding them of their retirement savings. In other instances, it’s a relative, caregiver, or friend who has been entrusted with handling the older investor’s finances that decides to take financial advantage. 

Either way, if a brokerage firm failed to properly supervise their registered representative or did not investigate any questionable activities taking place in an elderly customer’s account, allowing the fraud to happen, there may be grounds for filing a securities fraud claim against the firm through Financial Industry Regulatory Authority (FINRA) arbitration.

San Francisco Senior Investor Fraud Lawyers 

For 30 years, our San Francisco Bay Area investment fraud attorneys have represented older investors and their families in their fight to recover their losses. We know how devastating this can be for older investors, especially during this latter phase of life. 

An elderly investor fraud case is not the type of claim that you want to pursue without experienced, legal help. SSEK Law Firm has helped recover many millions of dollars for thousands of clients. We have lawyers on our team who have years of experience with elder investor fraud claims, specifically. Contact us for your free, no-obligation consultation with one of our San Francisco securities fraud lawyers.