Elder Fraud

Published on: June 28, 2019

SEC Publishes Fact Sheet For Identifying Senior Financial Exploitation

The SEC has published a fact sheet for identifying and reporting senior financial exploitation for brokers, transfer agents, and financial advisors. We’ve all heard at least one story about an investor who put money into something that was supposed to be the “next best thing,” maybe even with a “guaranteed return.” Unfortunately, that “next big thing” turned out to be fraudulent. As we at Silver Law Group have reported on our many blogs, senior investors have been particular targets of such blatant fraudulence. In some cases, these investors are bankrupted, and their years of lost savings and careful investments have left them dependent on Social Security. Continue reading

Published on: June 27, 2019

Stockbrokers Cannot Inherit Customer Accounts

by Silver Law Group

For years, financial advisers have walked a fine line when receiving financial inheritances from their clients. Unfortunately, the line between an adviser’s professional obligations and their personal interests is very easily blurred—a reality that leads to complicated fraud and ethics violations.

In this blog post, we’ll look into the legal issues associated with financial inheritances from clients by financial advisers, potential solutions to the problem, and how a group of bipartisan lawmakers are taking action and calling to the Financial Industry Regulatory Authority (FINRA) for reform. Continue reading

Published on: June 26, 2019

Stockbrokers Are Prohibited From Inheriting Money From Clients

by Silver Law Group

Has a broker or financial advisor asked to be a beneficiary in your will? Financial advisors should not be participating in a client’s estate.

Senators Catherine Cortez Masto, (D-Nev.), Mike Rounds, (R.-S.D.), Tina Smith, (D-Minn.) and Chris Van Hollen, (D-Md.) recently sent a formal letter to FINRA requesting that the agency draft and enact new regulations for both advisors and firms prohibiting them from receiving these types of inheritances, and requiring any inheritances to be forfeited. It also requests that the representatives and/or firms pay large fines, and restrict individuals from serving as financial advisors and representatives in the future. Current regulations allow brokers and financial representatives to accept inheritances from their clients. However, many brokerage firms prohibit the practice. Continue reading

Published on: May 21, 2019

Suspended Newbridge Securities Corp. Broker David Fagenson Under Investigation for Unsuitable Recommendations in Elderly Customer Accounts

by Silver Law Group

Silver Law Group is investigating Boca Raton, Florida-based Newbridge Securities Corporation broker David Fagenson (CRD# 1652012) after FINRA suspended him for eight (8) months for alleged misconduct in elder customer brokerage accounts.

According to Fagenson’s FINRA BrokerCheck report, FINRA suspended the Florida-based broker in November 2018. FINRA suspended Fagenson after he entered into an Acceptance, Waiver & Consent (AWC) that found Fagenson engaged in excessive and unsuitable trading in three (3) senior customer brokerage accounts while employed by UBS Financial Services Inc. Continue reading

Published on: May 21, 2019

What Does A Financial Advisor’s Senior Designation Mean?

by Silver Law Group

When you’re considering working with a financial professional, how do you pick the right person? Do you choose someone with an impressive-sounding title/designation that makes it seem like they have expertise helping people just like you, such as “senior specialist” if you’re a senior citizen?

While a designation like that might inspire confidence, before you work with anyone, you may be surprised to learn what really goes into getting these designations. It might not mean what you think it means. Continue reading

Published on: May 20, 2019

FINRA Bars Robert Lee Basile For Elder Financial Abuse

by Silver Law Group

Robert Lee Basile (CRD#: 2392772, aka “Bob Basile”) is a former registered broker and investment advisor who was last employed with PARK AVENUE SECURITIES LLC (CRD#:46173) of Corona, CA. His previous employers include Waddell & Reed (CRD#:866) of Riverside, CA, National Planning Corporation (CRD#:29604) of Chino, CA, and Edward Jones (CRD#:250) of St. Louis, MO. He began in the industry in 2009.

Basile has only one disclosure, filed on 11/16/2018. In it, he was sanctioned and indefinitely barred by FINRA. Without admitting or denying the findings, Basile consented to the sanctions and signed an Acceptance, Waiver and Consent (AWC) letter. Continue reading

Published on: May 17, 2019

Broker Chris Kubiak Arrested, Charged With Felony Theft By Fraud

by Silver Law Group

Chris Raymond Kubiak (CRD#: 1527367) is a previously registered broker whose last employer was Calton & Associates, Inc. (CRD#:20999) of Brookfield, WI. His previous employers include American Global Wealth Management, Inc. (CRD#:7388) of McDonough, GA, Freedom Investors Corp. (CRD#:23714) of Brookfield, and Dreher & Associates, Inc. (CRD#:8665) of Oakbrook Terrace, IL. He has been in the industry since 1986.

On 9/25/2018, Kubiak was arrested and charged with “felony theft by fraud” (Theft 943.20(1)(b)). The charges are currently pending, and he has not yet entered a plea. Continue reading

Published on: February 21, 2019

New York Securities Boiler Room Scheme Targeting Seniors

by Silver Law Group

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The SEC has brought additional charges against a Long-Island, New York-based boiler room that was sued for defrauding elderly and unsophisticated investors. The latest charges allege that Christian Romandetti, CEO of First Choice Healthcare Solutions Inc., the boiler room, and four others have committed fraud within the company’s shares and have generated more than $3.3 million of illegal profits. The new charges also allege that the parties generated more than $560,000 in kickbacks for Romandetti.

The SEC’S statement alleges that Romandetti and the other parties lied to more than 100 victims in a scheme that inflated First Choice’s stock price from less than $1 per share to $3.40 per share. From September 2013 until June 2016, the parties used several accounts to disguise their trading, and engaged in fraudulent trading practices. Elite Stock Research, a boiler room run by one of the defendants, Anthony Vassallo, was hired to promote First Choice to investors.

The SEC originally charged Elite Stock Research with bilking victims out of more than $10 million through fraudulent sales tactics and lies about penny stocks. Seven of the 13 individuals have pleaded guilty to criminal charges brought by the U.S. Attorney’s Office for the Eastern District of New York. The litigation against the 13 individuals is still continuing.

Published on: February 21, 2019

Ex-lawmaker Convicted of Stealing $3 million From Widows

by Silver Law Group

Why-South-Florida-is-a-Target-for-Ponzi-Schemers-300x200 A securities agent and former state legislator, Robert Kenneth Lindell, is found guilty on 15 counts of securities fraud, intentional evasion of income tax, and failure to pay Maine income tax, in what authorities call one of Maine’s worst cases of elder financial abuse. He defrauded two widows out of more than $3 million.

“Mr. Lindell was a trusted financial professional in Maine,” said Judith Shaw, the Maine securities administrator. “But more than that, he was like family to these women. He groomed them for years in order to perpetrate these crimes, preying on their trusting nature and vulnerabilities.” Continue reading

Published on: February 20, 2019

Boca Raton, Florida: Silver Law Group Securities Arbitration Attorneys Seeks to Aid Aggrieved Investors

by Silver Law Group

Have-You-Invested-Money-with-William-“Billy”-Nelson-and-Lost-300x200 Silver Law Group is investigating claims against brokers and financial advisors who committed misconduct in Boca Raton, Florida and the surrounding area.

Boca Raton is located in Palm Beach County, Florida on the east coast of the state. The city is located less than 50 miles away from Miami and less than 20 miles away from Silver Law Group offices. As of July 2015, Boca Raton’s estimated population is just over 93,000.

Boca Raton is home to the main campus of Florida Atlantic University, also known as FAU. Additionally, major supplier of office products and services Office Depot has its global headquarters in Boca Raton.