Was an Older Adult Manipulated, Deceived, or Pressured Into Losing Money?
Financial exploitation of an older adult can happen gradually and may not be discovered until substantial money, investments, or property have already been lost.
The wrongdoer may be a financial advisor, broker, caregiver, family member, acquaintance, salesperson, or someone else who gained the older person’s trust.
At Mazer Law Firm PC, we investigate cases involving the financial exploitation of older adults, including investment losses, unauthorized transactions, misuse of assets, deceptive financial recommendations, and abuse of a position of trust.
What Is Elder Financial Exploitation?
Elder financial exploitation generally involves the improper or unauthorized use of an older person’s money, property, investments, or financial resources.
It may involve outright theft. But many cases are more subtle.
An older adult may be persuaded to make a transaction that primarily benefits someone else, pressured into transferring money, sold an inappropriate investment, or manipulated by someone the person trusted.
The fact that the older adult technically signed a document or approved a transaction does not necessarily answer the question of whether exploitation occurred.
Warning Signs of Financial Exploitation
Potential warning signs can include:
- Large or unexplained withdrawals
- Sudden changes in investment accounts
- Unusual wire transfers or checks
- New joint owners or authorized users on accounts
- Changes to beneficiaries
- Transfers of real estate or other valuable property
- Unexplained loans or gifts
- Investments that are inconsistent with the person’s age or financial needs
- A sudden relationship with a new “friend,” advisor, caregiver, or salesperson
- Isolation from family members or trusted friends
- A person who insists on being present during financial conversations
- Missing account statements or financial records
- Unexplained changes in estate-planning documents
- A financial professional recommending high-commission or illiquid investments
- Transactions the older adult does not understand or cannot explain
One warning sign alone may not establish exploitation. A pattern of unusual conduct can be far more significant.
Elder Financial Exploitation by Brokers and Financial Advisors
Older investors can be particularly vulnerable to unsuitable investment recommendations.
A broker or financial advisor may recommend a product that generates a substantial commission but is poorly suited to the investor’s age, liquidity needs, risk tolerance, or financial circumstances.
Examples may include:
- Variable annuities
- Non-traded REITs
- Private placements
- Structured products
- High-risk bonds
- Illiquid alternative investments
- Excessive concentration in one investment or strategy
- Unnecessary annuity or investment exchanges
An older investor may be told an investment is “safe,” “guaranteed,” or appropriate for retirement without receiving a fair explanation of the risks, surrender restrictions, commissions, or potential for loss.
When that happens, the brokerage firm and financial professional may need to answer for the recommendation.
Exploitation by Someone in a Position of Trust
Financial exploitation is not limited to investment professionals.
It may involve a:
- Family member
- Caregiver
- Friend or neighbor
- Power-of-attorney agent
- Trustee
- Personal representative
- Business associate
- Romantic partner
- Financial professional
The common element is often trust.
A person may gain access to accounts, convince the older adult to transfer property, obtain signatures on financial documents, or gradually assume control over financial decisions.
The closer the relationship, the easier it can be for questionable conduct to go unnoticed.
“But They Signed the Documents”
A signature does not necessarily establish that a transaction was fair, understood, voluntary, or free from manipulation.
Important questions may include:
- What was the older adult told before signing?
- Did the person understand the transaction?
- Was important information withheld?
- Was the older adult pressured or intimidated?
- Who benefited financially?
- Was there a significant change from the person’s prior financial behavior?
- Did someone exploit a relationship of trust?
- Was the older adult dependent upon the person who arranged the transaction?
- Did a broker or institution overlook obvious warning signs?
The surrounding circumstances matter.
Banks and Financial Institutions May Have Important Evidence
Bank, brokerage, and investment records can reveal patterns that are not apparent from a single transaction.
An investigation may include reviewing:
- Bank statements
- Brokerage statements
- Wire transfers
- Checks
- Account-opening documents
- Beneficiary changes
- Powers of attorney
- Investment applications
- Emails and text messages
- Recorded telephone calls
- Broker notes
- Financial-advisor compensation
- Transaction histories
- Property-transfer documents
Those records can help establish where the money went, who benefited, and what happened before the loss occurred.
Brokerage Firms May Be Responsible for Their Financial Professionals
When elder financial exploitation involves an investment account, responsibility may extend beyond the individual broker.
Depending upon the circumstances, claims may involve:
- Unsuitable investment recommendations
- Misrepresentations
- Failure to disclose material facts
- Breach of fiduciary duty
- Negligence
- Failure to supervise
- Unauthorized transactions
- Excessive concentration
- Conflicts of interest
- Improper investment exchanges
Disputes involving brokerage firms are frequently handled through FINRA arbitration.
The Earlier the Financial Records Are Reviewed, the Better
Financial exploitation can become more difficult to investigate as time passes.
Records may be lost, memories may fade, accounts may be closed, and assets may be transferred again.
If you suspect that an older family member has been financially exploited, obtaining and preserving the financial records can be extremely important.
Get an Independent Review
If an older person lost money under circumstances that do not make sense, the financial transactions deserve a careful review.
Attorney Glenn Mazer spent more than 20 years in the financial-services industry before representing investors and victims of financial misconduct.
Mazer Law Firm PC can review the financial records, investment transactions, communications, account documents, and circumstances surrounding the loss to determine whether further investigation or legal action may be warranted.
Speak Directly With Attorney Glenn Mazer
Call (205) 644-3744 for a free case evaluation.
Mazer Law Firm PC — Turning Financial Betrayal Into Justice.