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.
A Flórida penaliza fortemente aqueles que exploram financeiramente pessoas idosas. Sob a lei da Flórida, a exploração de uma pessoa idosa ocorre quando um indivíduo de confiança ou pessoa em uma relação comercial com a pessoa idosa obtém ou usa (ou tenta usar) conscientemente os fundos, bens ou propriedade de uma pessoa idosa com a intenção de privar a pessoa idosa desses recursos.
Elder financial abuse can carry both civil and criminal liability for the perpetrator.
Quem se qualifica como um Ancião?
A idade limite de um ancião varia de acordo com o estado. A lei da Flórida define uma "pessoa idosa" como qualquer pessoa "com 60 anos de idade ou mais que esteja sofrendo das enfermidades do envelhecimento".
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:
- Golpes com seguros de saúde e de vida;
- Empréstimos predatórios, em que os credores enganam os mutuários para que estes concordem com condições de empréstimo injustas;
- Reparos ou manutenção doméstica fraudulenta;
- fraudes com cartão de crédito; e
- Doações filantrópicas 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 de investimento
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 títulos não-registrados,
- Investimentos "de alto retorno" ou "sem risco",
- Investimentos complexos,
- esquemas de Ponzi, e
- Esquemas em pirâmide.
Se seu consultor financeiro sugere um investimento que parece bom demais para ser verdade, então provavelmente é.
Violação do dever fiduciário
Os assessores financeiros registrados têm o dever fiduciário de tomar decisões de investimento de acordo com os melhores interesses de seus clientes. Este é o mais alto padrão de cuidado e impõe obrigações legais e éticas ao assessor. O dever fiduciário engloba o dever de lealdade, o dever de cuidado e o dever de boa fé e negociação justa.
A breach of fiduciary duty occurs when:
- Existe um dever fiduciário, através da criação de uma relação fiduciária;
- Os atos fiduciários são contrários aos melhores interesses dos clientes, seja através de atos deliberados ou de omissão;
- O cliente sofre um prejuízo financeiro real; e
- A violação do fiduciário foi a causa direta dos prejuízos do cliente.
A lei da Flórida reconhece a violação do dever fiduciário como uma forma de exploração de um ancião. Há várias maneiras pelas quais um fiduciário pode violar seu dever.
Apresentação incorreta ou falha na divulgação
Como parte de seus deveres fiduciários, os consultores financeiros são obrigados a divulgar todas as informações materiais sobre um investimento a seus clientes. A deturpação ou não divulgação de informações relevantes que teriam afetado a decisão de investimento do cliente é uma violação do dever fiduciário.
Investimentos inapropriados
Quando um investidor cria uma conta em uma empresa de consultoria de investimento, o cliente normalmente preenche um formulário de abertura de conta que inclui informações importantes sobre o cliente, tais como objetivos de investimento, tolerância ao risco, patrimônio líquido, ocupação e renda. O consultor tem o dever fiduciário de fazer recomendações de investimento que atendam às necessidades do cliente. Não fazer isso é uma violação do dever fiduciário. Por exemplo, se um cliente se aposentar e o assessor não ajustar os investimentos da carteira do cliente, o assessor poderá ser responsável por perdas financeiras.
Negligência
A negligência ocorre quando a conduta do assessor fica abaixo do padrão de cuidado estabelecido pelo setor, o qual é projetado para proteger os investidores de um risco de dano injustificado. Um exemplo de negligência ocorre quando o assessor não consegue diversificar a carteira do investidor por excesso de concentração em um tipo de segurança ou setor. Isto acarreta um grande risco para o investidor porque uma flutuação naquele único título ou setor poderia resultar em perdas significativas.
Aqueles que podem demonstrar uma violação do dever fiduciário podem recuperar danos reais, tais como dinheiro ou bens perdidos, ou ganhos não realizados devido à má administração de seu assessor financeiro. Muitas vezes, o consultor ou empresa de investimento também pagará danos punitivos ao investidor como forma de punição por suas ações inadequadas.
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.
Conta de Consumo
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.
A exploração financeira dos idosos é prejudicial em muitos aspectos. Pode causar grandes perdas econômicas não apenas para o indivíduo e sua família, mas também para as empresas e programas governamentais. Por exemplo, quando os idosos não têm os recursos financeiros para um cuidado médico adequado, eles dependem de programas federais de saúde, como o 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.
A mediação é um método voluntário e não obrigatório de resolução de disputas que utiliza um terceiro neutro para ajudar a alcançar uma solução mutuamente acordável. Esta opção é mais rápida e menos dispendiosa que a arbitragem ou litígio.
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.