Can I sue an investment professional for elder fraud?

Can I sue an investment professional for elder fraud?

by | Dec 17, 2019 | Firm News

Florida is home to many wealthy retirees, and some investment professionals specifically target senior residents because of their willingness to respond. An elder relative’s irregular or unauthorized transactions may be a sign of unscrupulous business practices or a breach of fiduciary duty. If so, it may require a legal action to sever the relationship or file charges. 

In the event of irregularities or wrongdoing, the financial institution employing an adviser to oversee you or your loved one’s funds may be responsible for any resulting monetary damages. An employer is legally obligated to monitor its employees’ activities and protect all clients from misconduct. 

Elder fraud leads to a loss of approximately $1 billion worth of deposits each year. One out of every five senior citizens experiences financial exploitation, as reported by InvestmentNews. It is not uncommon for a senior citizen to have a personal or business relationship with the individual engaged in the theft or deception. He or she may be a relative, caregiver or a professional with an established fiduciary relationship. 

Older Americans often fail to report to authorities any suspicious activity of an individual attempting to steal their money. Fear of reprisal or a diminished mental capacity to understand the impact of the harm may count as contributing factors. 

Investment professionals pass difficult exams in order to maintain a license, and you may never suspect that he or she is engaging in fraudulent activities. It might come as a surprise to learn that a trusted individual has sold unnecessary products, made excessive withdrawals or traded in unsuitable securities just to earn a commission. A legal action may help in recovering lost funds and compensation for damages. 

The information provided is for educational purposes only and not intended as legal advice.