AARP Study Shows Financial Exploitation And Fraud Costs US Seniors $28.3 Billion

Broker Clarice Saw Barred After SEC Charges Of EFE

In 2023, Americans over 60 lost upwards of $28.3 billion, according to a study from the American Association of Retired Persons (AARP). Of that figure, 72% comes from “known others,” or someone the individual knows, including family, friends, care workers, financial representatives, and others. The remaining 28%, totaling $8 billion, is fraud and theft by strangers.

Known as EFE, or Elder Financial Exploitation, it’s the “the illegal or improper use of an older adult’s funds, property, or assets,” according to the AARP. While there are civil and criminal penalties for committing fraud against someone over 60, most of the fraud goes unreported by the victims because of shame or fear of other retribution.

Because elderly clients tend to be more vulnerable, brokers, financial advisors, and other trusted consultants have an easier time defrauding them. The addition of cognitive decline in some of these clients renders them particularly vulnerable and more likely to be taken advantage of by someone they trust.

Only $7.8 billion of stolen client funds are reported to authorities. An additional $20.5 billion stolen but never reported. Elderly victims are more likely to avoid reporting being defrauded. The true dollar amount of EFE is likely much higher because of this under-reporting.

AARP’s Bank Safe—“If You See Something, Say Something.”

To help combat EFE, the AARP offers its free BankSafe training to frontline staff, call center representatives, financial advisors, supervisors and risk management officers at banks and other financial institutions. These individuals are often the first to notice potentially fraudulent transactions. With the right training and BankSafe certification, they can prevent fraud from.

The training helps them to recognize red flags and possible fraudulent transactions, potential signs of a customer’s cognitive decline, and gives them the power to stop unauthorized transfers and other transactions for closer analysis.

Financial organizations whose staff complete the training earn the AARP BankSafe Trained Seal. The organizations must re-certify every year.

Broker Clarice Saw Barred By SEC After Defrauding Elderly Customer

Clarice Crystal Saw, (CRD# 2633118, Chin Saw, Clarice Chin Saw) is a former broker and investment advisor last employed with Coastal Equities, Inc. (CRD# 23769) of Wilmington, DE. She was previously employed with Cetera Investment Services LLC (CRD# 15340) of Flushing, NY, Citigroup Global Markets Inc. (CRD# 7059) of New York, NY, and LPL Financial LLC (CRD# 6413) of Ardsley, NY. Saw has been in the industry since 1996 and is herself 60 years old.

According to the complaint, Saw defrauded an elderly investor who did not read or speak English. Because Saw speaks several languages, she was able to easily communicate with the client.

The complaint states that Saw From December 2021 through March 2022, Saw “carried out her scheme by obtaining by deception a power of attorney from the customer, falsifying internal records at the broker-dealer, liquidating all of the customer’s securities holdings at the broker-dealer without the customer’s authorization, and transferring all of the customer’s holdings at the broker-dealer to Saw’s own personal bank and brokerage accounts without the customer’s authorization,” according to her BrokerCheck profile.

Saw also added her name to the client’s bank account and used $100,000 for personal expenses including auto and mortgage payments. Additionally, she used the client’s funds to purchase securities in her own name.

Saw’s LinkedIn page is still available, and indicates that she speaks seven languages, including five from Asia. She settled these charges with the SEC on 9/21, which includes a sanction for disgorgement of $640,587.30. Saw is permanently barred from association with any “broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO.”

Coastal Equities terminated Saw’s employment in 2023 after the SEC filed charges.

Did You Invest With Clarice Saw Or Lose Money To A Broker Through Fraud? 

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.