Elder Financial Fraud
- What Is Elder Financial Fraud?
- How Might My Financial Advisor Engage in Elder Financial Fraud?
- Can I Enter Into a Loan Agreement With My Financial Advisor?
- How Can You Prevent Elder Financial Fraud?
- What Are My Resources if I Think Elder Financial Fraud Has Occurred or Is Afoot?
Elder financial fraud arises when elderly investors are targeted or exploited financially, due to their age, and potentially due to health problems that are more common at their age (i.e., Alzheimer’s disease).
Your financial advisor can engage in elder financial fraud by engaging in misconduct that led to your damages, including but not limited to churning, unauthorized trading, forgery, and recommending investments that are not in your best interests.
The answer is most likely no unless a narrow exception applies. FINRA Rule 3240 forbids your financial advisor from entering into a loan agreement unless an exception provided under subsection (2) applies. Thus, you should be concerned if your financial advisor requests to borrow funds from or lend funds to you.
You can add a “Trusted Contact Person” to your brokerage account. This person can be a family member or an attorney for example. In doing so, you are allowing your brokerage firm to contact your Trusted Contact Person in certain instances, for example, if the firm believes there may be fraudulent activity in your account(s). Adding a Trusted Contact Person to your account(s) can add an additional layer of protection to your assets.
You can call FINRA’s Securities Helpline for Seniors, 844-574-3577. You should also consult with a New York Elder Financial Fraud Law Firm, like Malecki Law, for guidance.