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Articles Posted in Elder Fraud

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The Securities and Exchange Commission (SEC) is suing Frederick Stow (Frederick Markley Stow), a barred broker last employed by Raymond James in Nashville, Tennessee, for allegedly defrauding two senior citizens of over $943,500.  “As alleged in our complaint, Stow took advantage of these seniors, abusing his access to their brokerage accounts to generate income for himself,” said Justin Jefferies, assoc. regional director, SEC’s Atlanta regional office. The SEC seeks the return of alleged ill-gotten gains, interest, injunctive relief, and a penalty. Federal prosecutors also filed criminal charges against Stow.The Securities and Exchange Commission (SEC) is suing Frederick Stow (Frederick Markley Stow), a barred broker last employed by Raymond James in Nashville, Tennessee, for allegedly defrauding two senior citizens of over $943,500.

“As alleged in our complaint, Stow took advantage of these seniors, abusing his access to their brokerage accounts to generate income for himself,” said Justin Jefferies, assoc. regional director, SEC’s Atlanta regional office. The SEC seeks the return of alleged ill-gotten gains, interest, injunctive relief, and a penalty.

Federal prosecutors also filed criminal charges against Stow. Continue reading

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Stockbrokers should not borrow money from their clients. That’s according to FINRA Rule 3240, which states that unless the stockbroker is an immediate family member or their firm has specific written procedures about borrowing and lending, then borrowing from a customer constitutes a violation. Silver Law Group helps investors recover money lost to stockbroker misconduct and elder financial fraud. Contact us today for a no-cost, confidential consultation at 1-800-975-4345.   Although prohibited, stockbrokers do still borrow and misappropriate from their customers. Sometimes it is from an older client who does not understand what is happening or cannot consent, which can be considered elder financial fraud.Stockbrokers should not borrow money from their clients. That’s according to FINRA Rule 3240, which states that unless the stockbroker is an immediate family member or their firm has specific written procedures about borrowing and lending, then borrowing from a customer constitutes a violation.

Silver Law Group helps investors recover money lost to stockbroker misconduct and elder financial fraud. Contact us today for a no-cost, confidential consultation at 1-800-975-4345.  

Although prohibited, stockbrokers do still borrow and misappropriate from their customers. Sometimes it is from an older client who does not understand what is happening or cannot consent, which can be considered elder financial fraud. Continue reading

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FINRA has released a new report illustrating the growth over the last five years of the FINRA Securities Helpline for Seniors and its efforts to provide support, resources, and education to senior investors. Silver Law Group continues to help seniors who are defrauded by stockbrokers and other financial advisors in elder financial fraud cases.  Unfortunately, we continue to see a rise in elder fraud cases, especially relating to promises of conservative investments that will provide income without risk to principal. Many of these cases involved illiquid or non-traded investment products including Reg D offerings, private placements, and real estate projects. Our experience is bolstered by FINRA’s report that the senior helpline has experienced a rise in calls.FINRA has released a new report illustrating the growth over the last five years of the FINRA Securities Helpline for Seniors and its efforts to provide support, resources, and education to senior investors. Silver Law Group continues to help seniors who are defrauded by stockbrokers and other financial advisors in elder financial fraud cases.

Unfortunately, we continue to see a rise in elder fraud cases, especially relating to promises of conservative investments that will provide income without risk to principal. Many of these cases involved illiquid or non-traded investment products including Reg D offerings, private placements, and real estate projects. Our experience is bolstered by FINRA’s report that the senior helpline has experienced a rise in calls. Continue reading

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FINRA requested comments on its proposed rule to limit registered representatives from being “named as a customer’s beneficiary or holding a position of trust for or on behalf of a customer.” Silver Law Group, a nationally-recognized investor rights law firm, has submitted a comment letter to FINRA that states our support for addressing this issue. Submitted by managing partner, Scott Silver, Esq., he comments that our firm has seen a rise in cases involving stockbrokers who improperly borrow money from clients, pressure clients to make the financial advisor part of the estate, and other trust and estate issues.FINRA requested comments on its proposed rule to limit registered representatives from being “named as a customer’s beneficiary or holding a position of trust for or on behalf of a customer.” Silver Law Group, a nationally-recognized investor rights law firm, has submitted a comment letter to FINRA that states our support for addressing this issue. Submitted by managing partner, Scott Silver, Esq., he comments that our firm has seen a rise in cases involving stockbrokers who improperly borrow money from clients, pressure clients to make the financial advisor part of the estate, and other trust and estate issues. Continue reading

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Robert Montes (Robert Frederico Montes) (CRD#: 835488), a barred broker formerly with Morgan Stanley (CRD#: 149777) in Palm Harbor, Florida, is the subject of 4 disclosures on his BrokerCheck report. Montes has been in the industry since 1977. Before joining Morgan Stanley, he worked for Wells Fargo Advisors (CRD#: 19616), Prudential Securities Incorporated (CRD#: 7471), Salomon Smith Barney (CRD#: 7059), Lehman Brothers (CRD#: 7506), E.F. Hutton & Company (CRD#: 235), Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#: 7691), and Oppenheimer & Co. (CRD#: 630).Robert Montes (Robert Frederico Montes) (CRD#: 835488), a barred broker formerly with Morgan Stanley (CRD#: 149777) in Palm Harbor, Florida, is the subject of 4 disclosures on his BrokerCheck report.

Montes has been in the industry since 1977. Before joining Morgan Stanley, he worked for Wells Fargo Advisors (CRD#: 19616), Prudential Securities Incorporated (CRD#: 7471), Salomon Smith Barney (CRD#: 7059), Lehman Brothers (CRD#: 7506), E.F. Hutton & Company (CRD#: 235), Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#: 7691), and Oppenheimer & Co. (CRD#: 630). Continue reading

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The Securities and Exchange Commission (SEC) announced that it has taken emergency action to stop an alleged $6 million Ponzi scheme that took money from at least 55 people, many of whom are seniors.  The SEC obtained a temporary asset freeze and restraining order against Neil Burkholz of Boca Raton, Florida, and Frank Bianco, of Pembroke Pines, Florida and their companies Palm Financial Management LLC and Shore Management Systems LLC.The Securities and Exchange Commission (SEC) announced that it has taken emergency action to stop an alleged $6 million Ponzi scheme that took money from at least 55 people, many of whom are seniors.

The SEC obtained a temporary asset freeze and restraining order against Neil Burkholz of Boca Raton, Florida, and Frank Bianco, of Pembroke Pines, Florida and their companies Palm Financial Management LLC and Shore Management Systems LLC. Continue reading

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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

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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.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

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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.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

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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.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

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