New York Attorney Representing Aging Investors Nationwide
Many older members of the population worked for the majority of their lives and now have significant financial resources to invest in securities. Older people are frequent targets of brokers and financial advisors seeking to defraud investors and swindle them out of their money, however, and they can easily become victims of financial elder abuse. If you or a loved one sustained financial harm due to fraudulent or deceptive acts, you should speak with a trusted securities litigation attorney to discuss whether the actions constitute financial elder abuse and are grounds for seeking compensation. Our New York securities fraud lawyers can analyze your investment accounts to determine if you may have been a victim of fraudulent practices and assist you in seeking recourse for your losses. Weltz Law will represent older and elderly investors in state and federal securities litigation and arbitration in New York and throughout the nation, helping them recover losses caused by financial elder abuse.
What is Financial Elder Abuse?
Older people are especially vulnerable to predatory schemes and fraudulent investment strategies and are often victims of financial abuse. Broadly, the Older Americans Act of 2006 describes financial elder abuse as the fraudulent, unauthorized, or inappropriate actions of an individual to use the resources of an older person for financial gain or to deprive an older person of their assets. Thus, any malicious act undertaken by a financial services professional with the intent of misappropriating the monetary resources of an older individual may constitute financial elder abuse.
Common Signs of Financial Elder Abuse
Brokers seeking to defraud older investors more commonly offer certain investment schemes and opportunities. For example, older people are often targeted by brokers perpetrating Ponzi schemes and can be easily swayed by the promise of a high rate of return with little risk. Brokers seeking investments for oil and gas ventures are frequently engaged in fraudulent schemes as well, and they may prey on older individuals who are suffering from cognitive decline and lack the capacity to make complex financial decisions. Older investors often receive offers to invest in promissory notes, which are essentially loans given to a company for a set duration in exchange for a fixed return. These may be legitimate but are frequently fraudulent and can result in substantial losses.
In addition to attempting to lure older individuals into investing in fraudulent schemes, brokers and financial advisors may engage in deceptive practices that unjustly deprive the older person of his or her financial resources. For example, brokers may suggest investing in securities that offer a high rate of return but that are unsuitable, given the investor’s risk tolerance. Additionally, brokers may engage in account churning, also known as overtrading, which allows brokers to charge excessive fees for unnecessary trades that do not benefit the investor. If you have lost money due to what you believe may be financial elder abuse perpetrated by your broker or financial advisor, you should consult a knowledgeable securities litigation attorney to discuss your case.