Elder Financial Fraud - Transcript

Elder financial fraud is a deeply troubling and increasingly common form of investment fraud that targets senior citizens. Perpetrators exploit the trust, isolation, or cognitive vulnerabilities of older adults to manipulate them into making poor financial decisions, mismanage, and/or outright steal their assets. At Malecki Law, we are dedicated to protecting seniors and their families from financial exploitation and seeking justice for those who have been wronged.

Elder financial fraud occurs when someone takes advantage of an older individual to gain access to their money, property, or other assets. This type of fraud often involves trusted individuals, such as family members, caregivers, or financial advisers, who use their position to deceive or coerce the victim. In some cases, perpetrators are complete strangers who target seniors through scams or fraudulent investment schemes.

Elder financial fraud can take many forms, including:

• Unauthorized Transactions: Brokers or advisers may make unauthorized trades or withdrawals from an elderly person’s account.
• Misrepresentation of Investments: Seniors may be misled into purchasing unsuitable or fraudulent investments, such as high-risk products disguised as safe options.
• Affinity Fraud: Exploiting shared cultural, religious, or social ties to build trust and manipulate seniors.
• Excessive Fees or Churning: Overtrading in an account to generate commissions without regard to the senior’s financial goals and best interest.
• Scams and Phishing: Fraudsters may use phone calls, emails, or other methods to trick seniors into divulging personal information or transferring money.

These schemes often have devastating consequences, draining retirement savings and leaving victims financially vulnerable during their later years. If you, or a family member may have been the victim of elder financial fraud, you should promptly contact financial fraud experts, like the securities attorneys at Malecki Law in New York to review your case.

Seniors are often targeted for financial fraud due to a combination of factors, including:

1. Access to Assets: Many seniors have accumulated significant savings over their lifetimes, making them attractive targets for fraudsters.
2. Trusting Nature: Older individuals may be more likely to trust authority figures or familiar individuals, which scammers exploit.
3. Cognitive Decline: Age-related cognitive impairments can make seniors more susceptible to manipulation and less likely to recognize fraudulent behavior.
4. Social Isolation: Seniors who are isolated from family or community support may lack a trusted person to help them identify and avoid scams.

Proactively avoiding the risks of elder financial fraud can significantly reduce the likelihood of victimization, like setting up safeguards such as executing a power of attorney.

Education is also key. Seniors and their families should be made aware of common fraud tactics and encouraged to report any suspicious activity promptly. The earlier fraud is detected, the greater the likelihood of recovering losses.

Elder financial fraud is a priority for state regulators, FINRA, and the SEC. These organizations recognize the broader societal implications of financial fraud on seniors. When older adults lose their savings, they may become dependent on government programs like Social Security, which are already under strain. Regulators like FINRA have implemented rules and policies designed to protect seniors, including requirements for brokers to act in their clients’ best interest, mechanisms for reporting and investigating claims, and uncovering evidence of misconduct.

At Malecki Law, we understand the delicate nature of addressing elder financial fraud. Our experienced securities attorneys are skilled in navigating the complex regulatory environment to help seniors and their families recover losses and hold perpetrators accountable. We thoroughly investigate claims, and recommend that our clients designate a trusted contact person, to ensure clear communication with their financial adviser.. For example, duplicate brokerage statements sent to both the senior and a trusted family member can provide an additional layer of oversight.

If you or a loved one has been affected by elder financial fraud, contact Malecki Law at (212) 943-1233 or reach out online to schedule a consultation. Protecting the financial security of seniors is one of our top priorities, and we are committed to fighting for justice on your behalf.

Transcript:

Elder financial fraud is truly a very tricky area of the law and it needs to be handled extremely delicately and using all of the tools in the toolbox.

Else senior issues and elder financial fraud is a hot button issue in every state regulator’s office at FINRA and at the SEC because look, the United States needs seniors to have their money okay. They can’t afford, the governments can’t afford people to lose their money in the stock market because they become essentially dependent on social security which we all know is precarious.

Elders sometimes need help in dealing with the issues in their life and many people don’t understand that in a highly regulated environment like the securities industry you have to make sure that powers of attorney are properly executed, that people are willing to take action on what a family member is saying and doing that the family member can be part of the conversation.

My own mom I have her send her brokerage statements duplicates to my house and to her house.

It’s important that things are set up before there’s a fraud so that somebody can be looking at it and avoiding it, but if there is a fraud you need to hire a securities attorney who really knows this area of practice and all of the rules that will benefit the senior in getting back their money and maybe more.