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.
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