Tag Archives: abuse of the elderly

Study by Regulators Confirms That Elderly Are Most Vulnerable to Financial Abuse/Fraud

August 2017

The North American Securities Administrators Association (NASAA) recently released a study showing that financial fraud on the elderly has increased, despite increased awareness and regulatory attempts to protect senior citizens.

Key findings in the study, which can be accessed here, are:

  • Most cases are undetected until it is too late.
  • Awareness is increasing, but fraud is not decreasing.
  • The industry is not doing enough proactively to protect its senior citizen customers.

In a prior survey of more than 60 brokerage firms, it was found that over half (54%) of the firms did not have a formal policy defining senior citizens and less than half (41%) had developed a form for customers to identify an emergency or trusted contact person.

Findings confirm that those ages 70 and older are the most vulnerable to financial fraud.

If you have questions about how your account has been handled or suspect that the account of a senior citizen relative or friend has been abused, call for a no charge consultation with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to learn about your options.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Hank Werner-Former Legend Securities Broker-Discloses Investigation for Churning Account of Blind & Disabled Widow

August  2016-New York

The FINRA records of Hank M. Werner ,  a  currently unlicensed stock broker who was most recently employed by Legend Securities Inc.  , discloses a pending FINRA investigation in which he was charged with excessive trading and commissions which cost a 77 year old widow, who is blind,  $184,000 over a three year period.

In addition Werner’s FINRA record discloses a prior final customer dispute, 2 terminations from employment and six outstanding judgment/liens.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In recently filed FINRA regulatory case 2015048048801, FINRA makes the following allegations:

  • Werner enriched himself at the expense of an elderly, blind and physically disabled customer by engaging in a manipulative, deceptive and fraudulent scheme pursuant to which he churned three accounts of the widow.
  • The victim, blind since birth, had recently lost her husband of 40 years, who was also blind.
  • Werner place over 700 trades in the accounts, generating nearly $250,000 in commissions resulting in losses of $184,000.

In FINRA case 98-0692, a customer of one of Werner’s prior employers, American Investment Services, (firm expelled by FINRA in 2/2003) , alleged damages of $412,636 for unsuitable investments, churning, misrepresentation and fraud. That case was settled for $190,000.

Werner was discharged for cause by two prior firms.

Werner discloses six outstanding tax liens, including amounts to the Internal Revenue Service totaling over $500,000.

 

Werner was employed by Legend Securities from 12/2012-3/2016. Prior to that he was employed by Liberty Partners Financial Services.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

AARP Teams With National Credit Union Administration to Promote Financial Education

Alexandria, VA- The AARP (formerly American Association of Retired Persons) and The National Credit Union Administration  (NCUA) have entered into a Memorandum of Understanding to conduct a series of educational initiatives designed to educate consumers in financial matters, including financial exploitation of the elderly. 
“AARP looks forward to our work with NCUA promoting important financial education so that families and individuals can face all of their real possibilities with confidence,” said AARP Executive Vice President Nancy LeaMond. “By working with organizations like NCUA, we can help ensure that consumers of all ages have the tools they need to manage their money and achieve short and long term financial resilience.”
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.  Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

NASAA to Focus on Investor Abuse Involving Seniors

Washington, DC

The North American Securities Administrators Association (NASAA) recently announced formation of a committee  to protect senior investors from financial exploitation.  According to NASAA, 34% of enforcement actions  taken by state securities regulators since 2008 have involved senior citizens.

NASAA cited four recent cases as examples:

  • In August 2014, the British Columbia Securities  Commission found that an unregistered advisor advised 500 or so, mostly senior investors, to sell their stocks, bonds and mutual funds and purchase high risk investments, He used  weekly radio infomercials, and investment seminars to draw his victims in. He also advised that the investors borrow against their homes to invest. He earned nearly $6 million in fees and commissions while the elderly investors lost over $40 million.
  • In Maryland, a broker was ordered to return over $1 million that he had convinced an 83 year old widow with Alzheimer’s to withdraw from her bank accounts and invest into high risk annuities.
  • In July 2014, a Minnesota advisor was caught operating a $2 million ponzi scheme involving senior investors. Instead of investing the money entrusted to him he spent it on yacht memberships, exotic dancers, dinners and travel.
  • In Montana in June 2014, a advisor bilked over $5 million from 140 mostly senior victims causing at least one victim to suffer a heart attack after learning of the loss. Most lost their life savings and were forced to return to the workforce in their 70’s.

Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.  Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900