Elderly individuals often rely on the advice and assistance of financial professionals to grow and maintain their assets. Unfortunately, retirement funds, savings, and investments that seniors spend their entire life building can disappear or diminish at the hands of someone they trust most.
If a financial professional has caused you or someone you know to suffer financial loss, an experienced elder financial abuse attorney can help.
The Law Offices of Robert Wayne Pearce, P.A. has extensive experience helping seniors who have been taken advantage of by their financial advisors, stockbrokers, and other professionals. We’ve helped recover over $170 million for our clients over the last 40 years.
If you or someone you know has been the victim of elder financial abuse, our experienced attorneys can help. We offer a free consultation to evaluate your case and provide legal advice tailored to your individual needs.
You can either call our office at (800) 732-2889 or contact us online to schedule an appointment. Our friendly staff is here to help you get the justice and compensation you deserve.
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What is Elder Financial Abuse?
Elder financial abuse occurs when someone uses, or attempts to use, an elderly person’s financial resources for their own personal benefit. Anyone in a position of trust can take advantage of an elderly person. This includes attorneys, financial advisors, trustees, caretakers, and family members.
Florida penaliza fuertemente a quienes explotan financieramente a las personas mayores. Según la ley de Florida, la explotación de una persona mayor se produce cuando un individuo de confianza o una persona en una relación comercial con la persona mayor obtiene o utiliza (o intenta utilizar) a sabiendas los fondos, activos o bienes de una persona mayor con la intención de privar a la persona mayor de esos recursos.
Elder financial abuse can carry both civil and criminal liability for the perpetrator.
¿Quién puede ser anciano?
El umbral de edad de un anciano varía según el estado. La ley de Florida define a una "persona mayor" como cualquier persona "de 60 años o más que sufra los achaques de la edad".
Common Types of Elder Financial Abuse
Elder financial abuse comes in many forms, such as theft, fraud, misuse of authority, extortion, and manipulation. Cases of financial abuse are evident across all industries, for example:
- Estafas de seguros de salud y de vida;
- Préstamos abusivos, en los que los prestamistas engañan a los prestatarios para que acepten condiciones de préstamo injustas;
- Reparaciones o mantenimiento fraudulento de la vivienda;
- Estafas con tarjetas de crédito; y
- Donaciones benéficas ilegítimas.
Professionals in the financial services industry are in an advantageous position to manipulate and exploit because they already have access to a portion of the elder’s funds. If you or someone you love has experienced any of the types of elder financial abuse described below, contact the investment fraud attorneys at The Law Offices of Robert Wayne Pearce, P.A., for help recovering your losses.
Below are some of the most common types of elder financial abuse:
Fraude en las inversiones
Elders can suffer financial loss through fraudulent investment schemes that their financial advisors suggest. Elderly investors are targets for investment fraud because perpetrators believe they are unsophisticated investors and easy to manipulate. Examples of investment fraud are:
- Compra de valores no registrados,
- Inversiones "de alta rentabilidad" o "sin riesgo",
- Inversiones complejas,
- esquemas Ponzi, y
- Esquemas piramidales.
Si su asesor financiero le sugiere una inversión que parece demasiado buena para ser cierta, probablemente lo sea.
Incumplimiento del deber fiduciario
Los asesores financieros registrados tienen el deber fiduciario de tomar decisiones de inversión en el mejor interés de sus clientes. Este es el más alto nivel de atención e impone obligaciones legales y éticas al asesor. El deber fiduciario abarca el deber de lealtad, el deber de cuidado y el deber de buena fe y trato justo.
A breach of fiduciary duty occurs when:
- Existe un deber fiduciario, mediante la creación de una relación fiduciaria;
- El fiduciario actúa en contra de los intereses de los clientes, ya sea por actos deliberados o por omisión;
- El cliente sufre una pérdida financiera real; y
- El incumplimiento del fiduciario fue la causa directa de las pérdidas del cliente.
Laley de Florida reconoce el incumplimiento del deber fiduciario como una forma de explotación de un anciano. Hay varias formas en las que un fiduciario puede incumplir su deber.
Falsedad u omisión de información
Como parte de sus deberes fiduciarios, los asesores financieros están obligados a revelar a sus clientes toda la información material sobre una inversión. Falsear o no revelar información relevante que hubiera afectado a la decisión de inversión del cliente constituye un incumplimiento del deber fiduciario.
Inversiones inadecuadas
Cuando un inversor abre una cuenta en una empresa de asesoramiento de inversiones, el cliente suele rellenar un formulario de apertura de cuenta que incluye información importante sobre el cliente, como sus objetivos de inversión, su tolerancia al riesgo, su patrimonio neto, su ocupación y sus ingresos. El asesor tiene la obligación fiduciaria de hacer recomendaciones de inversión que se ajusten a las necesidades del cliente. No hacerlo constituye un incumplimiento del deber fiduciario. Por ejemplo, si un cliente se jubila y el asesor no ajusta las inversiones de la cartera del cliente, el asesor podría ser responsable de las pérdidas financieras.
Negligencia
La negligencia se produce cuando la conducta del asesor está por debajo de las normas de atención establecidas por el sector, que están diseñadas para proteger a los inversores de un riesgo de daño no razonable. Un ejemplo de negligencia es cuando el asesor no diversifica la cartera del inversor al concentrarse excesivamente en un tipo de valor o sector. Esto conlleva un gran riesgo para el inversor, ya que una fluctuación en ese único valor o sector podría provocar pérdidas importantes.
Aquellos que puedan demostrar un incumplimiento de la obligación fiduciaria pueden recuperar los daños reales, como el dinero o los activos perdidos, o las ganancias no realizadas debido a la mala gestión de su asesor financiero. A menudo, el asesor o la empresa de inversión también pagarán daños punitivos al inversor como forma de castigo por sus acciones inapropiadas.
Unauthorized trading is the buying, selling, or exchanging of securities without the authority, knowledge, or permission of the investor. Unless the financial advisor is given discretion to trade in a client’s account, trading without consent is a type of investment fraud.
Investors do not have to agree to every trade their advisor recommends. It is the advisor’s responsibility to ensure that the client fully understands the benefits and risks of the recommended trade. On the other hand, it is the investor’s responsibility to review account statements and trade confirmations. Elderly investors often place a great deal of trust in their financial advisor to make investment decisions for them, which creates the perfect opportunity for elder financial abuse.
Cambio de cuentas
Account churning is when a financial advisor makes a large number of trades in the client’s account for the sole purpose of collecting more commissions. With each trade, the investor is losing money, while the advisor is making money. This excessive trading is a way to financially exploit an investor.
Have You Been a Victim of Elder Financial Abuse? Here’s What to Do.
La explotación económica de los ancianos es perjudicial en muchos sentidos. Puede causar grandes pérdidas económicas no sólo para el individuo y su familia, sino también para las empresas y los programas gubernamentales. Por ejemplo, cuando los ancianos no tienen recursos económicos para recibir una atención médica adecuada, dependen de los programas federales de asistencia sanitaria, como Medicaid.
According to a 2019 study conducted by the U.S. Consumer Financial Protection Bureau, elderly Americans who were exploited suffered an average loss of $34,200. In cases where a fiduciary caused the loss, the amount increased to $83,600 per victim. Unfortunately, elder financial abuse often goes unreported, so these numbers are likely higher.
Below is 4 steps you can take if you are a victim of elder financial abuse:
Step 1. Take Back Control – Talk to an Elder Financial Abuse Attorney
You should contact an attorney as soon as you believe you or someone you love has been the victim of financial exploitation.
An experienced elder financial abuse attorney will carefully review what occured between you and the trusted individual to help determine what recourse you may have. Do not wait until you are in a position where your financial resources are depleted.
The Law Offices of Robert Wayne Pearce, P.A. has recovered over $170 million dollars on behalf of investors who have been the victims of fraud or misconduct by financial advisors, stockbrokers and other trusted individuals. We understand that this type of exploitation can be extremely traumatic, particularly when it involves a trusted individual.
Our attorneys provide knowledgeable advice and representation in these difficult cases. We have successfully represented many elderly clients who had their trust violated, and are dedicated to helping protect seniors against financial exploitation.
If you or someone you know has been the victim of elder financial abuse, contact our office today for a free consultation. We will help ensure that your best interests are being represented and provide the most effective legal options to pursue justice.
Step 2. Report the Incident
As soon as you suspect elder financial abuse, report the incident to the financial advisor or the brokerage firm’s compliance department. If the issue is unresolved, your next option may be mediation or arbitration.
Step 3. Pursue a FINRA Mediation or Arbitration
The Financial Industry Regulatory Authority (FINRA) is the governing organization that creates and enforces rules for advisors and their firms and assists in resolving disputes between advisors and investors. If your financial advisor or their firm is registered with the U.S. Securities and Exchange Commission (SEC) or a state securities regulator, you can use FINRA’s dispute resolution services to resolve your case of elder financial abuse.
La mediación es un método de resolución de conflictos voluntario y no vinculante que utiliza a un tercero neutral para ayudar a alcanzar una solución de mutuo acuerdo. Esta opción es más rápida y menos costosa que el arbitraje o el litigio.
Arbitration is more like litigation in that an impartial party or panel hears arguments from both sides, analyzes the facts and evidence, and makes a final, binding decision. There is a statute of limitations to bring a claim against your financial advisor. Under FINRA Rule 12206, you have six years from the time of the financial advisor’s act to take action. However, Florida has a four-year statute of limitation for negligence claims. Therefore, it is paramount to the success of your case that you contact an experienced elder financial abuse attorney as soon as you suspect financial abuse.
Step 4. File a Lawsuit
Your final option is to sue the trusted individual for their financial abuse. Litigating these cases is complex, lengthy, and costly, but may be necessary to recover your financial losses. Speak with an elder financial abuse attorney to learn which option is best for you.
Schedule Your Free Consultation with an Elder Financial Abuse Attorney
Elder financial abuse is devastating emotionally and financially. Let us help you on your road to recovery.
We will fight to hold the wrongdoers accountable and provide options on how to recover your financial losses. Our seasoned elder financial abuse attorneys know the legal protections you have, and we are dedicated to representing your interests.
Over the past 40 years, we have recovered over $170 million for investors who were wronged by those they trusted. Let us help you today. Contact The Law Offices of Robert Wayne Pearce, P.A., to schedule a free consultation with our elder financial abuse attorneys.