Unscrupulous Investment Advisors are Continuing to Target Senior Investors
Investment fraud schemes are a serious concern for senior investors. Unfortunately, many unscrupulous brokers and advisors seek to prey on the elderly, knowing that they are likely to have sizable portfolios and assuming that they are less capable of protecting themselves financially. We recently discussed a study which suggested that senior investment fraud is on the rise. Here are three more recent examples of investment fraud schemes targeting senior investors:
1. Florida Fraud Artists Facing Charges in Alleged $5.4 Million Senior Investment Scam
The Securities and Exchange Commission (SEC) recently filed charges against two individuals in Florida who are accused of soliciting $5.4 million in fraudulent investments from a group of investors comprised mostly of senior citizens. According to the SEC, these individuals offered supposed investments in two entertainment-related businesses, VIP Television Inc. and VIP TV LLC, and a new product called the “Spongebuddy.” However, upon receiving the investors’ funds, the two individuals spent more than $2.6 million on themselves and their family members personally, including purchases of personal vehicles. They also paid “undisclosed sales commissions” to a third individual who was responsible for soliciting potential investors through cold calls.
2. Chicago Investment Advisor Facing Charges for Alleged $5.2 Million Senior Investment Fraud
In Chicago, an investment advisor is facing SEC charges after allegedly soliciting $5.2 million in fraudulent investments from senior investors over a period of approximately six years. According to the SEC, the investment advisor, “furnished forged checks and other phony documents to financial institutions, and lied to clients about the use and safety of their investments. . . . [M]ost of the funds [the advisor] misappropriated belonged to elderly clients, including his mother-in-law and father-in-law and an individual in a nursing home.” Rather than investing these elderly individuals’ funds, the advisor allegedly created false account statements while using advisors’ funds to buy luxury vehicles and pay other personal expenses.
3. Tennessee Investment Advisor Charged in Alleged Four-Year, $1.85 Million Senior Fraud Scheme
In a third case, an investment advisor is facing civil and criminal charges in Tennessee after allegedly defrauding retired seniors out of $1.85 million. According to the SEC, the advisor persuaded the senior advisors to transfer their portfolios to new accounts after leaving his former employer so that he could gain personal access to their portfolios. Specifically, the advisor is being accused of:
- Forging senior investors’ signatures in order to misappropriate their funds;
- Misrepresenting that he was placing senior investors’ funds into conservative investments;
- Using senior investors’ funds for personal investments and expenses;
- Using some investors’ funds to repay other investors; and,
- Misappropriating funds from a retiree who was financially-dependent on her retirement savings.
Are You Concerned about Senior Financial or Investment Fraud?
If you are concerned that you or a loved one may be a victim of an investment scan targeting senior citizens, we urge you to contact us promptly for more information. To speak with an experienced financial fraud lawyer in confidence, please call (646) 663-5628 or inquire online today.