Identifying, Preventing and Remedying Elder Financial Abuse

Our readers will recall the extensive work we have done in the areas of identifying, remedying and preventing elder financial abuse. The Money Magazine article featuring our work on behalf of a senior client, scammed out of $1 million, contained important information about the scope of the problem. A ThinkAdvisor article discussed the same case. And since those matters have concluded, we have advised several additional clients and families with serious concerns. One particularly egregious example involves the family of a woman in her mid-80s who was sold an unsuitable annuity product that had eight years of surrender charges embedded in the investment.

As the Baby Boom generation moves toward retirement, the number of investors vulnerable to financial exploitation has exploded. Now, on the one-year anniversary of the “Senior Safe Act,” a coalition of securities regulators has issued a fact sheet to help raise awareness among broker-dealers, investment advisers, and transfer agents of the Act and how the Act’s law works. This resource also provides to senior investors and their families helpful insight on what regulators and investment companies are doing to address the challenge.

New research indicates that even very early-stage dementia, including Alzheimer’s, can erode seniors’ financial skills. This erosion can render seniors vulnerable to financial exploitation by unscrupulous brokers, bankers and other financial services personnel whose focus is on generating commissions and fees rather than serving their customers. A recent article in FA Magazine reported on the findings.

If you have been a victim of elder financial abuse or are concerned that someone you know may be a victim, please contact a securities attorney at The Galbraith Law Firm. Call 212.203.1249 or email kevin@galbraithlawfirm.com for a free confidential consultation regarding your legal rights.