Securities regulators state that professionals should help seniors avoid being scammed
When it comes to investment scams, seniors are easy targets. According to a recent report from the North American Securities Administrators Association (NASAA), seniors were targeted in one-quarter of the enforcement actions in 2014, in cases where states track victims by age.
“Seniors remain a top target of investment fraud and protecting seniors from investment fraud and abuse is a key priority of NASAA and its members,” said William Beatty, NASAA President and Washington Securities Director. Beatty also noted that since 2008 when NASAA began tracking data collected by state securities agencies, one-third of all enforcement actions involved senior victims.
The most common products involved in these elderly fraud cases are unregistered securities such as promissory notes, private offerings or investment contracts. Many of these investment schemes which claim not to be directly tied to Wall Streets.
A recent article in Investment News reports that many of these cases include affinity fraud, where individuals pose as members of a group, such as a retiree or ethnic organization, to solicit money from unsuspecting victims.
The article cites an example of these scams in the case of an elderly widow in Texas. Her neighbor convinced her to invest her fortune in an oil and gas exploration investment that he was selling. He said that the investment would generate a lot of money that she could leave to her church. The neighbor, who is now in prison, instead spent the money renovating his house and swimming pool.
What can be done to help reduce senior fraud? Investment News encourages advisers to take special care of their senior clients, making sure that they know how to read financial statements so they can better monitor the progress of their investments. They also suggest that advisers review all of a client’s holdings and assets and alert someone if something seems suspect, such as investments that won’t pay out for a long time or something wildly speculative.
While most financial advisers will look out for the best interests of their elderly clients, there are unfortunately those who will capitalize on seniors’ lack of knowledge and vulnerability and mishandle their investments. Investors should always be careful of advisors who seek to “borrow” money from clients, solicit questionable investments or otherwise have too much access to a client’s money, bank or brokerage accounts.
If you are concerned about broker misconduct or senior fraud when it comes to you or your elderly friends or loved ones, Silver Law Group may be able to help. Investors who may be entitled to loss recovery do not always know their legal rights, but the attorneys at Silver Law Group are skilled and experienced in securities arbitration, and dedicated to helping people navigate their options.
At Silver Law Group, you can expect a complimentary consultation and a case handled on a contingent-fee basis, in which you will only pay legal fees if Silver Law Group wins your case. To schedule your free consultation and begin your journey toward loss recovery, contact Silver Law Group today.