Despite a push in recent years to enact new laws designed to protect the elderly investors, it is clear that broker fraud remains a prevalent form of elder abuse. Sadly, many elderly individuals suffer from ailments that make them particularly susceptible to undue influence, and with their entire life’s savings “there for the taking,” the elderly are increasingly becoming targets for brokers’ fraudulent schemes.
Last year, legislators in 33 states, the District of Columbia and Puerto Rico introduced legislation specifically intended to address financial fraud targeting elderly citizens. Members of the U.S. Senate also proposed a new elder financial abuse reporting law in late 2015, and in March of this year, the New York State Senate passed a law designed to help protect senior citizens from financial abuse.
At Zamansky LLC, we are actively monitoring the legislative developments that are providing new protections and remedies for elderly victims of financial abuse. If you believe that your investment broker may have taken advantage of you, we encourage you to contact us right away for a free consultation.
What is Elder Financial Fraud?
“Financial fraud” refers to any improper or illegal act that allows one person to obtain another person’s money. Stock broker fraud is an all-too-common form of financial fraud that is often perpetrated against the elderly. Stock broker fraud can take various forms, including:
- Performing trades without authorization
- Making unsuitable investments
- Over-concentrating an investor’s portfolio in a single type of investment
- Misrepresenting the risk or potential returns of an investment product
Unscrupulous brokers take these types of actions not because they are in their clients’ best interests, but because they generate larger commissions that the brokers themselves can take to the bank.
What Do the New Laws Do to Protect Senior Citizens Against Financial Fraud?
Recently-enacted laws and some bills that are currently pending with the state and federal legislatures are designed to help protect the elderly against broker fraud in a number of different ways.
For example, New York’s new elder financial abuse legislation authorizes banks to refuse to process transactions that they, social workers or law enforcement agencies reasonably believe to be linked to financial exploitation of a vulnerable adult. This includes investment fraud and financial abuse by stockbrokers. Taking a different approach, the Senior$afe Act of 2015 (proposed last October in the U.S. Senate) would encourage investment advisors and financial institutions to report instances of broker fraud. Other laws offer different forms of protection as well, but all with the same goal of protecting the elderly from becoming victims of their investment brokers’ misdeeds.
What Should I Do if I Suspect Elder Financial Fraud?
If you suspect that you or an elderly loved one may be a victim of investment broker fraud, the most important thing you can do is to speak with a lawyer as soon as possible. While the law protects you, you may need to act quickly in order to give yourself the best chance at securing a full financial recovery. At Zamansky LLC, we can take swift action to protect your rights, and we will fight vigorously to win the compensation you deserve.
Contact an Elder Financial Fraud Lawyer at Zamansky LLC Today
Zamansky LLC is a leading securities fraud law firm located in New York City that represents victims of financial fraud nationwide. If you have questions about elder financial fraud by investment brokers, we would be happy to speak with you. To schedule a free, confidential consultation, call (212) 742-1414 or contact us online today.