Investors routinely trust brokers to act with integrity and honesty in managing their valuable assets. Unfortunately, investors are often manipulated by financial advisors and broker-dealers.

Older investors and retirees are frequently the target of financial scams.  The following signs may indicate that you or a loved one is experiencing financial misconduct or fraud:

  • Pressure to Transfer Money Immediately
    • Many fraudulent schemes encourage investors to transfer, invest, or send money immediately. Be sure to do thorough research before transferring funds. If the deal is sound, it will likely still be available after taking the time to research both the firm and individual making the offer.
  • “Too Good to be True” Investments
    • In their Guide for Seniors, the Securities and Exchange Commission cautions elder and retiree investors that “if it sounds too good to be true, it is.” Beware of investment opportunities that advertise a higher return than normal on well-known stock indexes.
  • Unsuitable Investments
    • An investment is “unsuitable” for a client when a client is not in the financial position to afford loss. Investment advisors or brokers often place clients in high-risk investments to maximize the amount of commissions the advisor makes. For elderly investors, this means high-risk and speculative investments.
  • Checks Made Out to Individual Advisor
    • Beware of financial advisors or brokers who ask for checks to be made out to them personally, rather than to a brokerage firm. This is a common way brokers or financial advisors fraudulently pocket investors’ money.
  • Buying or Selling Securities without Client’s Authorization or Permission
    • When a broker or financial advisor buys or sells without a client’s permission or authorization, that broker has engaged in unauthorized trading. Elder investors may fall subject to unauthorized trading when employing a “close friend” as a financial advisor or broker. Often, investors can suffer from clouded judgment or be more lenient on advisors who are friends or acquaintances.

When someone takes financial advantage of an older person, it is a form of Elder Abuse.

If you believe that you or a loved one has an investment advisor or broker who is not acting in your best interest or has committed fraud, contact Miller Law Group for a free consultation, or call 919-348-4361.