What Is Elder Fraud?
Elder fraud is any scheme or act of deception targeting older adults to steal money, assets, or personal property. Financial elder abuse covers a broad range of conduct, from investment fraud carried out by registered brokers to financial exploitation by family members or caregivers who abuse a position of trust.
We understand how disorienting it can be to discover that someone your family trusted has been stealing from a parent or grandparent. If it’s any consolation, you are not alone.
The National Council on Aging estimates that financial exploitation of seniors costs older adults billions of dollars each year, which makes it one of the most widespread and damaging forms of elder abuse in the country. One thing is for sure: It should not be tolerated. If you or someone you love has been the target of elder fraud, you have rights and should take legal action at once.
Elderly victims can report misconduct to appropriate authorities while simultaneously working with an attorney to recover their financial losses through FINRA arbitration or litigation. Both paths are available, and pursuing one does not close off the other.
It’s impossible for our team to comment on your specific case until we know your details, though. We ask that you give us a call and speak to an elder financial abuse attorney. During your free consultation, you can walk us through the facts of your case, and we can determine how to best proceed.
Signs That Your Loved One Is Being Financially Exploited
If you are worried about your or an elderly loved one’s finances, these warning signs may indicate that financial fraud is already happening.
Acting quickly can limit the damage and preserve your options for recovery. The most common signs of elder financial abuse are:
- Unexplained withdrawals or transfers from bank accounts or investment portfolios.
- Sudden changes to a will, trust, or power of attorney naming a new beneficiary.
- Unpaid bills or notices of eviction despite adequate income or assets.
- A caregiver, family member, or financial advisor exerting unusual control over financial matters.
- The elderly person appears confused, fearful, or reluctant to discuss their finances.
- Missing personal property, jewelry, or valuables with no clear explanation.
- Signatures on financial documents that appear forged or signed under pressure.
If you notice any of these signs, we suggest you contact both the authorities and an experienced elder fraud attorney. Someone who knows the industry well can determine if this is actually abuse or if it’s just a misunderstanding.
Types of Elder Financial Abuse
Allow us to walk you through some of the most common types of financial abuse committed against vulnerable adults that our team handles nationwide:
Investment Fraud and Broker Misconduct
Brokers and financial advisors who target elderly clients through unsuitable investments, misrepresentations, or unauthorized trading are committing investment fraud, a violation that carries both regulatory and civil consequences.
FINRA Rule 2010 requires all registered brokers to observe high standards of commercial honor in every transaction. And when that doesn’t happen, there are rules and regulations in place to protect investors from unethical financial professionals.
Violations involving senior investors can be pursued directly through FINRA arbitration, which is often the fastest path to recovering financial losses for elderly victims. Stockbroker misconduct targeting older adults can also be reported to FINRA and the SEC, which would trigger regulatory reviews that run alongside a civil claim.
Undue Influence
Undue influence occurs when a person in a position of trust manipulates an older adult into making financial decisions that serve the manipulator's interests rather than the elder's own. This can be devastating both emotionally and financially to a family.
It commonly appears in estate planning contexts where trusted family members or caregivers pressure seniors into changing wills, transferring assets, or signing over power of attorney before the elderly person fully understands what they are agreeing to. In these situations, a breach of fiduciary duty may also exist, giving the elder law attorney additional grounds for recovery.
Ponzi Schemes and Fraudulent Investments
Retirement savings built over a lifetime can disappear in months when a senior falls victim to a Ponzi scheme or fraudulent investment offering. Ponzi schemes target senior citizens specifically because they tend to hold substantial savings and may be less familiar with complex financial products.
For elderly victims who lost money to Ponzi schemes, high-yield investment programs, or other fraudulent offerings, recovery may be possible through a civil claim filed with the SEC, FINRA, or a court of law, and we understand how devastating that kind of loss feels at this stage of life.
Financial Exploitation by Family Members or Caregivers
Studies consistently show that the majority of elder financial abuse is carried out by someone the victim already knows and trusts. Family members, paid caregivers, and close friends account for a large share of reported cases, and the conduct often goes on for months or years before anyone notices.
This type of exploitation frequently goes unreported because elderly victims feel shame or fear losing the relationship, but adult protective services and law enforcement can be engaged alongside a civil claim.
Financial exploitation statutes in most states also give financially exploited older persons specific legal rights to pursue damages independently of any criminal proceeding.
Power of Attorney Abuse
A power of attorney is a legal document that grants one person the authority to make financial decisions on behalf of another, and in the wrong hands, it becomes a tool for systematic theft. Abuse of power of attorney may include unauthorized transfers, draining of bank and investment accounts, or the sale of personal property without the elder's knowledge or consent.
Why Choose Robert Wayne Pearce as Your Elder Fraud Attorney?
We know you have many options, but at the law firm of Robert Wayne Pearce, we have over 45 years of investment fraud and elder financial abuse experience with $185 million recovered for defrauded investors and a 99% success rate.
Attorney Pearce has experience litigating every type of elder fraud case there is, including investment fraud, broker fraud, undue influence, Ponzi schemes, power of attorney abuse, unsuitable investment claims, and other forms of fraud.
If your loved one has been the victim of financial exploitation, rest assured that we will fight tirelessly to recover everything they have lost. Here at the Law Offices of Robert Wayne Pearce, P.A., our firm’s record speaks for itself, and we are ready to put it to work for your family.
Our clients choose us for the following reasons:
- 45+ Years of Experience: Robert Wayne Pearce has handled investment fraud and elder financial abuse cases for over four decades, giving our firm an inside understanding of how brokerage firms and bad actors defend themselves.
- $185 Million Recovered: Our firm has recovered $185 million for clients harmed by investment fraud and financial exploitation across the country.
- 99%+ Success Rate: Mr. Pearce has recovered funds for over 99% of his clients through court litigation, arbitrations, and settlements nationwide and internationally.
- 200+ Cases Tried: Attorney Pearce has tried over 200 cases to trial verdict or arbitration award, with only 4 losses for clients in his career.
- No Fees Unless We Win: We represent clients on a contingency basis, meaning you pay nothing unless we recover for you.
Meet the Team
ROBERT WAYNE PEARCE
Securities Attorney
ADAM KARA LOPEZ
Securities AttorneyWho Commits Financial Exploitation of the Elderly?
Elder financial exploitation is more common than most families expect, and knowing who poses the greatest risk can help loved ones act before the damage becomes irreversible. /p>
Studies show that more than two-thirds of elder financial abuse is perpetrated by someone the elderly person already knows, including trusted family members, friends, and paid caregivers who are given access to finances precisely because they are trusted./p>
Financial institutions, stockbrokers, and financial advisors also account for a significant share of elder fraud cases, often targeting older adults with unsuitable products, misrepresented investments, or outright fraudulent schemes designed to drain retirement accounts./p>
In cases involving broker fraud or investment misconduct, FINRA BrokerCheck is a publicly available tool that allows families to review a financial advisor's full disciplinary history before any engagement, and it can also surface past complaints that may be relevant to a current claim. We suggest that you choose only a well-respected broker with a long track record of ethical trading./p>
Our firm serves elderly victims and their families in all 50 states and is ready to fight for the full recovery you deserve. Call (800) 732-2889 for a free consultation, and remember, you pay nothing unless we win.
Frequently Asked Questions
What is the difference between elder abuse and elder financial abuse?
Elder abuse is a broad term covering physical, emotional, and financial harm to older adults, while elder financial abuse refers specifically to the theft, fraud, or exploitation of an elderly person’s money, assets, or personal property.
How do I report elder financial exploitation?
You can report elder financial exploitation to Adult Protective Services, local law enforcement, and, in cases involving investment accounts, to FINRA or the SEC directly.
Can I file a claim if a financial advisor took advantage of my elderly parent?
Yes, if a financial advisor committed broker fraud, made unsuitable investment recommendations, or otherwise exploited an elderly client, a claim can be filed through FINRA arbitration or civil litigation to recover the financial losses.
How long do I have to file an elder fraud claim?
The time limit depends on the type of claim and the state where the fraud occurred, so contacting an attorney as soon as you suspect exploitation is the best way to protect your legal rights.