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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Understandably increasing focus, concern on elder fraud

A recent study in a respected national journal posits that about one of every 18 "cognitively intact" seniors in America falls victim to some type of financial ruse.

Those scams are many and varied, of course. They range from classic Ponzi schemes to an array of investment pitches geared toward alleged can't-miss opportunities with no downsides.

The journal's fraud-linked estimate begs this obvious question: If close to 5% of mentally sharp older adults regularly fall victim to an investment scam, how many other seniors with some evidenced mental decline are being conned by fraudsters?

Certainly the number is alarmingly high. And that is why federal regulators have instituted anti-fraud safeguards aimed at protecting a notably vulnerable demographic. A recent national article notes the implementation of new rules authored by the Financial Industry Regulatory Authority. These are two key provisions:

  • Brokers' ability to temporarily halt an account withdrawal if they suspect third-party manipulation
  • Mandatory requirement for broker advisers to obtain a "trusted person" contact to communicate with "if fraud or mental decline is suspected"

Those are positive developments, of course, which should help to deter fraud and money loss in many instances. Responsible and client-empathetic brokers across California and the rest of the country will welcome their application.

It bears noting, though, that a relatively high percentage of investment fraud owes to bad-faith behavior committed by inside consultants like brokers and other investment advisers themselves.

Indeed, our blog routinely references stories where that is the case. Compromised seniors are often unable to ward off fraud schemes orchestrated by such individuals because of the trust imposed in them.

Individuals having concerns regarding investment fraud targeting an elder loved one or acquaintance can reach out for guidance and strong legal representation to a proven securities law attorney who advocates exclusively on behalf of investors.

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