Justia Lawyer Rating
Super Lawyers - Rising Stars Kirk G. Smith
Super Lawyers Samuel B. Edwards
Super Lawyers William S. Shephard
Texas Bar Today Top 10 Blog Post
Avvo Rating. Samuel Edwards. Top Attorney
Lawyers Of Distinction 2018

Elder Financial Abuse by Brokers and Investment Advisers

Older investors, age 65 and older, remain one of the most vulnerable populations at risk of becoming the victims of financial fraud. Sometimes, the perpetrator is a family member, a friend, or another trusted adult, such as a caregiver or a guardian. In other instances, the fraudster may be a broker or a financial adviser. This is someone who has a fiduciary duty to act in the elder investor's best interests and whose job it is to properly oversee and invest the customer's IRA, brokerage account, or other savings, while keeping their money safe.

Shepherd Smith Edwards and Kantas (SSEK Law Firm) represents older investors, including retirees and other seniors, and their families against the brokers and investment advisers who either purposely defrauded them or were negligent in managing their money. Over the years, our elder financial abuse attorneys have helped thousands of senior investors to recoup their losses and other damages.

Most Older Investors Are Conservative Investors Who Cannot Afford a Lot of Financial Risk

One of the reasons that seniors are a popular target of investment fraud is that many of them have money, accumulated and saved after many years of hard work. These are the funds that are supposed to support them after they retire, which is why older people are conservative investors who cannot take on much risk.

For a bad broker managing a senior investor's money, this means there are funds to misappropriate. This is not only illegal, but it is outright theft. Stockbroker fraud becomes even easier to commit when the victim is in poor health, frail, or suffering from some form of diminished mental capacity, such as dementia or Alzheimer's. Unfortunately, there are financial professionals who will seek to take advantage of this type of situation.

Here are a few ways in which a broker may commit senior investment fraud:
  • Overconcentration. This involves investing an older investor's portfolio too much in one type of investment, rather than diversifying. This can increase the risk of loss should that financial product plunge in value.
  • Investing a conservative senior's funds in risky investments, such as private placements, nontraded real estate investment trusts (nontraded REITs), exchange-traded funds (ETFs), business development companies (BDCs), structured products, oil and gas investments, collateralized loan obligations (CLOs), or collateralized debt obligations (CDOs).
  • Churning. Excessive trading in an elderly customer's account for the purposes of generating commissions.
  • Unauthorized trading in a senior investor's brokerage account without their knowing/official consent or without the firm's permission.
  • Making unauthorized withdrawals and transfers from the older customer's account.
  • Unsuitable investments. Using a senior investor's money to purchase financial products or funds that are not appropriate for their risk tolerance level or goals but will generate high commissions for the financial representative.
  • Exploiting an older investor's funds in other ways, including borrowing money from that customer, making themselves the benefactor of their will, or stealing their money.
  • Negligence. This doesn't necessarily involve the intent to commit elder investment fraud or other willful misconduct. Rather, the broker acted carelessly, cluelessly, or failed to act at all, causing the older investor to suffer financial harm.
Senior Investor Fraud is Elder Abuse

For an older investor to suffer significant financial losses at this late stage in life, the consequences can be devastating. It may impact their ability to support themselves or pay for crucial medical care. Brokerage firms and their registered representatives know all of this.

Yet, year after year, tens of thousands of seniors continue to lose a lifetime of savings because a broker or financial adviser mishandled or misappropriated their money. When this happens, it's not just the financial professional that should be held liable for elder investor fraud. The broker-dealer that did not protect them and failed to properly supervise their registered representative also should be held accountable for damages.

A Broker Fraud Firm Fighting for Older Investors and Their Families

For 30 years, SSEK Law Firm has helped seniors and retirees recover their losses caused by the negligent and fraudulent actions of brokers and their firms. We represent older investors and their families nationwide and have recovered many millions of dollars on our clients' behalf. Contact our senior investor fraud attorneys today.

Client Reviews
★★★★★
"I am going to miss conversations with you, Sam Edwards. You’ve been a wonderful lawyer and a friend. I loved learning legal jargon from you. But, even more, it is your self respect and commitment to your position that I admire and your persistent patience-your equanimity. With great appreciation, thank you!" M.B.
★★★★★
"My experience with Ryan Cook has been very positive. Through every step of the litigation he explained what to expect to happen. When I spoke with him later he reviewed the process. He was very patient and I never felt rushed. I have already told friends how wonderful he is." L.R.
★★★★★
"I want you to know that I very much appreciate your expertise, hard work and guidance that led to a satisfactory resolution with Raymond James. From our first meeting, I felt "heard" and that my situation and story were respected. Every subsequent interaction I had with any of you - in person, via email or by phone - only corroborated that feeling. What great work you do on behalf of people like me who have been wronged, yet don't know how to navigate the appeals/mediation/arbitration process as you do. I will be forever grateful." M. L.
Contact Us
  1. 1 Free Consultation
  2. 2 No Recovery, No Fee
  3. 3 Over 100 Years Experience

Fill out the contact form or call us at (800) 259-9010 to schedule your free consultation.