Securities Lawyer Blog | Victim of Fraud?

TAG | brokers involved in elder abuse

Mar/13

1

Risks Associated with the Investor Who Develops Alzheimer’s Disease

Comments off · Posted by Securities Lawyer in FINRA

For someone with Alzheimer’s disease, one of the first skills to decline is the high-level function required to accomplish financial tasks such as paying bills, balancing a checkbook or reading a brokerage statement.

Unfortunately, the number of Americans with Alzheimer’s disease is expected to nearly triple by 2050. This epidemic will put even more pressure on financial advisors and stockbrokers to make sure they are not taking advantage of their clients.

According to a new government-funded report, which was published in the medical journal Neurology, the number of people suffering from this devastating disease will increase to 13.8 million over the next four decades, from 5 million today. Nearly half of those 85 and older are victims, according to the Alzheimer’s Association.

Only a few federal, state or industry guidelines exist to help financial planners navigate the potential legal, ethical and practical challenges of dealing with clients who exhibit mild or moderate dementia.

Were your loved ones sold investments or asked to make financial decisions by their brokers or financial advisors while suffering from Alzheimer’s disease? Call Soreide Law Group for a free consultation with an attorney at: 888-760-6552

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Oct/12

8

Protecting the Elderly from Financial Fraud

Comments off · Posted by Securities Lawyer in FINRA

In a recent MoneyWatch article, Steve Vernon writes that investment fraud and financial abuse targeting the elderly is a major problem today, according to a recent survey by the Investor Protection Trust and Investor Protection Institute. The top three ways in which seniors are exploited are:

Theft of diversion of funds or property by caregivers
Financial scams perpetrated by strangers
Theft or diversion of funds or property by family members

The IPT and IPI jointly surveyed a total of 756 experts with such cases, including state securities regulators, financial planners, health care professionals, social workers, adult protective service employees, law enforcement officers, elder-law attorneys and academics. The found the best way to prevent financial abuse — educational campaigns and counseling tailored to the financial needs of older Americans and their families or caregivers.

The MoneyWatch article asks, “How serious is elder abuse?” According to a bulletin from the National Adult Protective Services Association, 1 out of 9 U.S. seniors reported being abused, neglected or exploited in the past 12 months. Victims are three times more likely to die than those not subjected to abuse and four times more likely to go into a nursing home. They also use healthcare services at a higher rate than the general population.

So what can you do both for your parents now and for yourself down the road? Here are some suggestions:

Raise awareness of these issues with your parent(s) by finding one of the programs by experts as effective for prevention. Make it easy for your parents to attend. Make it an opportunity to do something social with your parents.

Put your parents’ finances on auto-pilot, with automatic deposit of Social Security, pension, annuity and investment income into checking accounts. Put as many of their bills as possible electronically. Find a financially savvy, “guardian angel” who will frequently visit or check in with your parents and will supervise any substantial financial transaction. This person will often be a family member, although this step can be a double-edged sword, given the prevalence of abuse by family members cited by the survey. If you don’t have any trustworthy family members living close by, see if you can find a trustworthy friend who lives close by.

If your parent(s) worked for a large, reputable company and have their savings with a 401(k) plan — consider keeping it there. Often you’ll get the best investment deals by keeping your money with your employer’s plan. These plans are strictly regulated, and employers operate these plan for the exclusive benefit of their employees.

A red flag goes up when a senior is isolated and their need for companionship makes them vulnerable to exploitation. This is one important reason why a careful choice of living quarters needs special attention. Arrange for daily contact with people who care about you and your parents/seniors.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, represents clients nationwide in arbitrations before FINRA. Call to speak to an attorney regarding your investment losses. For a free consultation on how to potentially recover those losses call: 888-760-6552, or you may visit our website at: http://www.securitieslawyer.com.

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Sep/12

18

Boynton Beach Broker Barred by FINRA for “Borrowing” Money from Elderly Client

Comments off · Posted by Securities Lawyer in FINRA

Stephen Nietsch (CRD #3111082, Registered Representative, Boynton Beach, Florida)

was barred from association with any FINRA member in any capacity and ordered to pay $20,000, plus interest, in restitution to a customer. The sanctions were based on findings that Nietsch borrowed $20,000 from an elderly customer contrary to his member firm’s procedures prohibiting him from borrowing from customers. Nietsch has not repaid the loan.

(FINRA Case #2009020385001)

The above information appears on FINRA’s website under “Disciplinary and Other FINRA Actions, September, 2012.”

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, represents clients nationwide. For a free consultation on how to potentially recover your financial losses call: 888-760-6552, or you may visit our website and complete the online form at: http://www.securitieslawyer.com.

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Mar/12

14

The ‘Golden Years’ May Not Be All That Golden for Senior Investors

Comments off · Posted by Securities Lawyer in FINRA

The financial industry has been anticipating this time in history ever since the Baby Boom generation began. There are more people who will be turning more money over to stockbrokers than at any other time in history. 

We have watched the abuse investors have taken. Take for example, the investors in Worldcom or Enron. They soon learned that things are not always as they seem. No where is that more true than in the financial and securities industry. For brokerage firms, each customer complaint is no more than a drop in the bucket – just another cost of doing business. For a Baby Boomer investor, that “drop” could be their entire retirement fund. 

The many fraudulent schemes of broker/dealers turn what should be the golden years into years of desperation. Baby Boomers who saved and invested to prepare for retirement, find themselves returning to find work in an economy that no longer values their worth. Their legacy instead goes from what they can leave to their children and grandchildren to whether to move in with their children or reduce their assets in order to qualify for a Medicaid eligible nursing home.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: www.securitieslawyer.com.

 
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Feb/12

20

Deerfield Beach, FL, Rep Named in FINRA Complaint

Comments off · Posted by Securities Lawyer in FINRA

The following information was obtained on FINRA’s website’s ‘Disciplinary Actions, January 2012.”
 
Andrew James Aragona (CRD #1320844, Registered Representative, Deerfield Beach, Florida)
 
was named as a respondent in a FINRA complaint alleging that he recommended
variable annuity switches to an elderly customer who had a moderate risk tolerance
and a primary investment objective of capital appreciation.
 
The complaint alleges that Aragona recommended that the customer consolidate several annuities into one annuity because it purportedly offered revocable annuitization and permitted the customer to leave money to her heirs in a tax-efficient manner; the annuity was purchased for $1,185,229 and the customer incurred approximately $69,000 in surrender fees for which Aragona received $67,500 in commissions.
 
This complaint also alleges that less than a year later, Aragona recommended that the customer switch the annuity for another one because he believed it provided more flexibility in volatile market conditions and allowed investments in subaccounts; the annuity was purchased for $1,017,195 and the customer incurred approximately $61,000 in surrender fees for which Aragona received $56,000 in commissions.
 
This complaint further alleges that because the customer incurred a total of
approximately $130,000 in surrender fees in less than one year, the costs outweighed any purported benefits; therefore, the recommendations were not suitable for the customer.
(FINRA Case #2010023963301)
 
The information from FINRA’s website has ended.
 
Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained  losses through Andrew James Aragona, of Deerfield Beach, FL, or similar losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: www.securitieslawyer.com.
 
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Dec/11

1

Oregon Fines LPL Financial Over Risky Sales to Elderly Clients

Comments off · Posted by Securities Lawyer in FINRA

The brokerage, LPL Financial, LLC, was fined $100,000 November 22, 2011,  by the State of Oregon for failing to supervise a broker that sold high-risk oil and gas partnerships to clients, many of whom were elderly.

According to the Oregon Department of Consumer and Business Services, a former LPL representative, Jack Kleck, sold the oil and gas investments to many Oregon residents. Given their age and investment objectives, the investments were not suitable.

On the BrokerCheck website of the Financial Industry Regulatory Authority Inc., or FINRA, Jack Kleck was a broker with LPL in La Grande, Ore., from 2000 to 2006, when he resigned, according to his profile. He was then with Pacific West Securities Inc., four months and has not been registered with another firm since 2007. The State of Oregon revoked his license in 2007 and fined Kleck $100,000 but suspended $70,000.

Having around 12,800 registered representatives and investment advisers, LPL Financial is the largest independent broker-dealer in the country.

According to the statement from the department, LPL failed to supervise the actions of Jack Kleck and failing to ensure that company policies and procedures were enforced.  Many of Kleck’s clients were elderly– 70s and 80s, and may not have been capable of making sound investment decisions, the Department said.

“LPL Financial has taken numerous steps to improve its compliance and supervisory practices,” the department said. “The company has increased the number of employees devoted to compliance- and supervision-related functions, increased its pre-sale review of transactions and enhanced branch office examinations.”

Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have experienced losses through LPL Financial, LLC, or Jack Kleck, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Nov/11

18

Laidlaw & Co. Miami Broker Accused of Elder Abuse

Comments off · Posted by Securities Lawyer in FINRA

An article appeared in the About.com Guide, written by Julie Garber regarding a Miami broker and elder abuse.  She wrote that recently a Miami news station reported on the elder abuse case of Josephine Troisi, age 93, and her sister, Mary Teris, age 95. A few years ago the sisters, who live together in Hollywood, Florida, hired 48-year old Cynthia Franke, a financial advisor with Laidlaw & Co., and 46 year-old Tyrone Javellana, a CPA and officer of a company named the Estate Planning Group, to assist the sisters with their finances. But last year Troisi’s 69-year old son, John Troisi, contacted Hollywood police when he noticed unusual activity in his mother’s checking account that was tied to Laidlaw & Co., the Estate Planning Group, and both Franke and Javellana personally.

Garber writes that after several months of digging, Hollywood police found that not only had thousand of dollars been transferred from Troisi and Teris to Franke, Javellana, and their respective companies, but John Troisi had been replaced by Javellana in a Power of Attorney and Franke had been named as a beneficiary of a trust that had been set up by Teris. When asked why she named Franke as a beneficiary of her trust, Teris said that she didn’t understand the “full implications” of doing so and it was not what she wanted.

According to Hollywood Police Lt. Scott Pardon, “What both [Franke and Javellana] did was use their relationship as a stockbroker and accountant to gain their trust. They began drawing off their account to enrich themselves without the victims permission.” Franke and Javellana have been charged with elderly exploitation.

Laidlaw allegedly failed to supervise Cynthia ‘Cinder’ Franke properly, allowing Franke to abuse elder investors. Brokers also are prohibited from recommending securities that are unsuitable for the investor. Unsuitable investments can include those securities that involve more risk than the customer is willing or able to withstand, as in this case.

Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member have experienced losses with broker Cynthia ‘Cinder’ Franke of Laidlaw & Company, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

 

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