There is No Slowdown In Financial Exploitation of the Elderly
2010 marked another year of troubling fraud, insider trading and Ponzi schemes that rocked our financial markets. There was yet another troubling sign of increased abuse of elder investors by their financial advisors.
One area of abuse that we saw come up during the year was financial advisors borrowing money from elderly customers. Elderly investors are generally very trusting and easily persuaded to give money to predator advisors thinking they are helping them out. Such agreements are in violation of industry rules as well as rules of the employing firm of the advisor. More often than not the money “borrowed” was never paid back. There is reason to anticipate that this activity will continue, with the aging of the Baby Boomers.
Other areas of elder abuse or elder exploitation have been in situations where the investors have been mentally or physically impaired and were suffering from Alzheimer’s and dementia; where financial advisors were given a Power of Attorney and access to bank accounts, credit cards or ATM’s; where the advisors obtained discretionary authority to trade the account; or placing investors in complex risky investments for which they are not suited or in annuities with high fees and long surrender periods.
If you or your loved ones have been subjected to elder exploitation, please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.