Michigan Investment Loss Attorneys
Michigan is home to many great cities and destinations: Detroit, Ann Arbor, Novi, Traverse City, and Bloomfield Hills. Many of these locales have wealthier residents whom financial fraudsters and scammers regularly target. Elderly investors need to be particularly wary, as this population is known to be extra vulnerable to exploitation. The securities arbitration law firm of Malecki Law has helped numerous retirees and elderly investors recover their investment losses. For over 25 years, Malecki Law’s investment loss attorneys have provided legal representation to investors victimized by financial fraud. The firm’s founder, Jenice L. Malecki, Esq. has recovered tens of millions of dollars for senior investors and retirees, and is a passionate advocate for serving the underrepresented, in particular elderly victims of financial abuse. The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) have continued to focus on minimizing the possibility of financial abuse. Additionally, state regulators like Michigan’s Department of Licensing and Regulatory Affairs (LARA) and Corporations, Securities, and Commercial Licensing Bureau (CSCL), try to assist FINRA and the SEC in preventing financial abuse and have come up with their own state “blue sky” laws.
The Michigan Uniform Securities Act (MUSA) regulates the securities industry in Michigan. For example, MUSA states that securities sold in Michigan must be registered with the state, federal government, or exempt from registration altogether. MUSA also governs broker-dealers. Section 451.2401(1) states that a person shall not transact business in the state as a broker-dealer unless that person is registered as a broker-dealer or exempt from the state registration requirements.
On World Elder Abuse Awareness Day, LARA and CSCL asked Michiganders to watch for warning signs of elder abuse, publishing a news release with the following questions that should be asked:
- Has an elder moved away from existing relationships and toward new associations with other “friends” or strangers?
- Has a new person entered the elder’s life and shown an excessive interest in the elder’s finances or accounts?
- Are you unable to speak directly with the elder despite repeated attempts at contact?
- Does the elder display unexplained excitement over a financial windfall or prize check and reluctance to discuss details?
As the news release points out, and what our securities fraud lawyers have learned through firsthand experience, what makes the elderly increasingly vulnerable as they get older is that they may become more isolated as they leave the workforce and engage less with family members. The pandemic surely exacerbated their isolation as it did for most everyone else.
Losing money in fraudulent investments can be overwhelming to senior citizens and retirees because they often have left the workforce and have no ability to earn that money back. In this day and age of trading stocks from your mobile phone, it is seniors who more typically rely on the advice of a financial professional, thus making them more targeted for abuse. These financial advisory relationships are built on trust and have evolved over time, making it extra difficult to spot a fraudulent adviser. One underutilized tool that most investors can use to protect themselves is FINRA’s BrokerCheck database. This database is an online search tool that displays information about the adviser’s background. BrokerCheck can alert you to red flags, such as any prior customer complaints or regulatory discipline against the adviser. You simply enter the name of the adviser and the firm he or she is registered with. The site then provides a report that is viewable to the public. A separate search can also be conducted against the firm itself, which can also be sued for its negligence in failing to supervise an investor’s account.
Malecki Law is an investment loss law firm that provides representation to investors nationally. The firm is headquartered in New York City and ensures proper representation in each state, whether actions are brought in state or federal court, as well as in arbitration. The majority of lawsuits to recover retail investment losses are typically brought within FINRA’s arbitration forum. Arbitration can provide a faster and more efficient way to recover losses than in court. Malecki Law’s investment loss attorneys can also help move the process along even faster by ensuring that seniors and other investors with disabilities apply for an expedited case status from the outset of filing a claim. Even generally, bringing an action in FINRA arbitration has the advantage of receiving restitution faster than the courts, as arbitration awards provide little ground for appeal. This is a good thing, especially in light of elderly investors having less time to lose because of medical and financial hardships that can become more burdensome as one gets older. If you or any elder investors you know were solicited with questionable investment schemes or if you have seen suspicious activities in your accounts, schedule a free initial consultation with Malecki Law, by calling (212) 943-1233, or emailing firstname.lastname@example.org.