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Articles Posted in Elder Fraud

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Silver Law Group filed a FINRA arbitration claim on behalf of an investor who suffered losses after her financial adviser convinced her to loan him money, and then failed to repay it. The financial adviser developed a position of trust and confidence with Silver Law Group’s client, then convinced her that he had a unique investment opportunity which would make large profits for both of them. The adviser never disclosed that this is an improper practice in the brokerage industry or that his broker-dealer did not allow brokers to borrow money from customers. However, the customer alleges that the firm failed to properly supervise the financial advisor and engaged in elder financial fraud.Silver Law Group filed a FINRA arbitration claim on behalf of an investor who suffered losses after her financial adviser convinced her to loan him money, and then failed to repay it. The financial adviser developed a position of trust and confidence with Silver Law Group’s client, then convinced her that he had a unique investment opportunity which would make large profits for both of them. The adviser never disclosed that this is an improper practice in the brokerage industry or that his broker-dealer did not allow brokers to borrow money from customers. However, the customer alleges that the firm failed to properly supervise the financial advisor and engaged in elder financial fraud. Continue reading ›

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Mario Rivero Jr. (Mario Everildo Rivero Jr., CRD# 5856503), 38, is a former registered broker and investment advisor whose last known employer was LPL Financial LLC (CRD#:6413) of Red Bank, NJ. His only prior industry employment was with Wells-Fargo Clearing Services, LLC (CRD#:19616) of Elizabeth, NJ.  He has been in the industry since 2010. After a FINRA investigation and two sets of charges, he has been arrested in two separate cases. The FINRA Investigation And Ban Rivero has only one disclosure in his FINRA record that involves a similar investigation, leading to his indefinite and permanent bar from the securities industry. Rivero was a broker and investment advisor at Wells Fargo for a total of nine years, then resigned to join LPL Financial. Wells Fargo originally filed a Form U5 termination form stating that Rivero had voluntarily resigned. However, Wells Fargo amended the Form U5 on April 22nd, 2021. After his move to LPL, Wells Fargo received complaints from two of Rivera's customers, indicating that he may have misappropriated some of their funds. Rivero remained registered with LPL until 06/04/2021. FINRA then began an investigation, which included requesting documents and information from Rivero regarding this matter. FINRA made the request on May 3rd, 2021. In a phone call on May 18th, 2021, with FINRA staff, Rivero's legal counsel acknowledged the receipt of FINRA’s requests, but declined to produce any information or documentation requested at any time. By doing so, Rivero violated several of FINRA’s rules, leading to sanctioning. This sanction included a permanent bar from associating with any FINRA member in all capacities. Rivero signed a letter of Acceptance Waiver And Consent (AWC), and the bar became final on June 4th, 2021.Mario Rivero Jr. (Mario Everildo Rivero Jr., CRD# 5856503), 38, is a former registered broker and investment advisor whose last known employer was LPL Financial LLC (CRD#:6413) of Red Bank, NJ. His only prior industry employment was with Wells-Fargo Clearing Services, LLC (CRD#:19616) of Elizabeth, NJ.  He has been in the industry since 2010.

After a FINRA investigation and two sets of charges, he has been arrested in two separate cases. Continue reading ›

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FINRA recently barred four brokers after they were individually found to have engaged in elder financial abuse. All four have been barred indefinitely after separate FINRA disciplinary actions. All four have signed Acceptance, Waiver & Consent (AWC) letters after the hearings to settle the claims. They are no longer working for or affiliated with a FINRA broker dealer, by order of the hearing officers in each case. Misappropriation of Client Funds - David Wells, CRD#: 6774493 This broker has two additional names listed in Brokercheck: David Sheldon Wells David Wells He has been in the industry since 2017 and has worked for two broker dealers: Fifth Third Securities, Inc. (CRD#:628) Of Chicago, IL Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) of Chicago, IL On 06/03/2021, Fifth Third Securities allowed Wells to resign after allegations surfaced that he misappropriated client funds from three of his clients.FINRA recently barred four brokers after they were individually found to have engaged in elder financial abuse. All four have been barred indefinitely after separate FINRA disciplinary actions. All four have signed Acceptance, Waiver & Consent (AWC) letters after the hearings to settle the claims. They are no longer working for or affiliated with a FINRA broker dealer, by order of the hearing officers in each case. Continue reading ›

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The recent case of Beverly Schottenstein Vs. JP Morgan and the Schottenstein Brothers was a very strong reminder of the problem of elder abuse. Specifically, financial abuse among elderly people who, in some cases, may not understand they’ve been defrauded. While Ms. Schottenstein knew her grandsons were defrauding her, she was able to get justice (and a financial settlement) in her case. Other elders that don’t have as much money or realize they are being defrauded may not be as fortunate. Financial institutions now have the opportunity to stop a case of elder financial fraud before it happens. Elder Financial Fraud By The Numbers The FBI’s Internet Crime Complaint Center (ICCC) in their Elder Fraud Report for 2020, reports that more than 105,000 victims over the age of 60 lost $1 billion dollars through various schemes just last year. These scams can include: Extortion Non-payment/non-delivery (more prevalent since the increase of online ordering during the pandemic) Tech support (i.e., “I’m calling from Microsoft about the virus on your computer”) Identity TheftThe recent case of Beverly Schottenstein Vs. JP Morgan and the Schottenstein Brothers was a very strong reminder of the problem of elder abuse. Specifically, financial abuse among elderly people who, in some cases, may not understand they’ve been defrauded.

While Ms. Schottenstein knew her grandsons were defrauding her, she was able to get justice (and a financial settlement) in her case. Other elders that don’t have as much money or realize they are being defrauded may not be as fortunate. Continue reading ›

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Jimmie Summers (Jimmie Darrel Summers CRD#: 1467286, aka, Jim Summers, Jimmy Daryl Summers, Jimmy Summers) is a former registered broker and investment advisor. His last known employer was Waddell & Reed (CRD#:866) of Tulsa, OK. Previous employers include Cetera Investment Services LLC (CRD#:15340), also of Tulsa, Bok Financial Securities, Inc. (CRD#:17530) of Sand Springs, OK, and Invest Financial Corporation (CRD#:12984) of Appleton, WI.  He has been in the industry since 1986. FINRA began an investigation after it received a telephone call to its Securities Helpline for Seniors. While employed with Cetera Investment Services, Summers accepted “multiple appointments and designations from one of the firm’s elderly clients.” The client, age 82, made Summers a: Successor trustee of his living trust, allowing Summers to receive 90% of the assets upon this customer’s death Personal representative of the customer’s estate in the will Sole beneficiary for an annuity Agent with power of attorney and medical power of attorney (Summers never used these POAs, and is no longer an agent) Cetera’s firm policies prohibited brokers and investment advisors from being named as a trustee, co-trustee, successor trustee, or executor for a firm customer, or from having power of attorney for a firm customer, or beneficiary in any capacity, unless the customer was also an immediate family member.Jimmie Summers (Jimmie Darrel Summers CRD#: 1467286, aka, Jim Summers, Jimmy Daryl Summers, Jimmy Summers) is a former registered broker and investment advisor. His last known employer was Waddell & Reed (CRD#:866) of Tulsa, OK. Previous employers include Cetera Investment Services LLC (CRD#:15340), also of Tulsa, Bok Financial Securities, Inc. (CRD#:17530) of Sand Springs, OK, and Invest Financial Corporation (CRD#:12984) of Appleton, WI.  He has been in the industry since 1986. Continue reading ›

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Trusts can be a significant part of your estate plan. Some investors may decide to transfer securities into a trust, or leave them as part of their estate to their beneficiaries. Assets that are transferred into a trust is taken out of the estate for the probate process. The expectation is that the beneficiaries will later have the benefit of the investments after the original owner passes in accordance with the deceased’s wishes. Occasionally, a person will also select a stockbroker or other financial services person to serve as a trustee. A trustee and/or executor are supposed to act in the best interest of the beneficiaries. However, this isn’t always the case. The Trustee A fund’s trustee has the job of overseeing the funds in the trust, and keeping extensive records of all funds coming in and payments going out. This is in addition to preparing tax returns for the trust.Trusts can be a significant part of your estate plan. Some investors may decide to transfer securities into a trust, or leave them as part of their estate to their beneficiaries.

Assets that are transferred into a trust are taken out of the estate for the probate process. The expectation is that the beneficiaries will later have the benefit of the investments after the original owner passes in accordance with the deceased’s wishes. Continue reading ›

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Most stockbrokers and other financial service representatives genuinely care about their clients. Unfortunately, there are some in the mix who see an elderly client as a target-rich environment, and the abuse frequently isn’t detected until it’s too late. They take advantage of a client who may not completely understand what’s being discussed or what they may be signing. Financial abuse of the elderly is the biggest form of elder abuse, and it’s getting bigger. An estimated $2.9 billion is stolen every year from elders. Our attorneys work with victims to recover losses from financial advisors, trustees and family members who engage in misconduct. Most people believe that only wealthier seniors are targeted for elder financial fraud, but any senior can be targeted. Elders who are not financially well off can lose everything. Unfortunately, our lawyers have handled cases involving massive losses that steal a person’s senior years. This is a growing problem that is only expected to get worse as the “baby boomer” generation gets older.Most stockbrokers and other financial service representatives genuinely care about their clients. Unfortunately, there are some in the mix who see an elderly client as a target-rich environment, and the abuse frequently isn’t detected until it’s too late. They take advantage of a client who may not completely understand what’s being discussed or what they may be signing. Continue reading ›

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In our Silver Law securities arbitration and investment arbitration blogs, we highlight individuals who were caught taking financial advantage of their investment clients. In many cases, the investors are elderly, and sometimes, inexperienced at investing. And in some cases, the brokers and advisors are elderly themselves, caught committing fraud after a successful decades-long career. These individuals should understand what constitutes fraud, particularly against elderly clients. Still, they do it anyway. Many times, these elderly clients do not completely understand the complex investment information they are presented with. Some may be too polite to ask questions or challenge the representative. In other cases, they may be experiencing the beginnings of cognitive decline that isn’t  obvious and hasn’t yet been detected by family or their physician. This lapse in mental acuity can allow a fast-talking broker to convince them of something to which they would otherwise say “no.” The Increasing Elderly Demographic Although California has the largest number of elderly citizens, Florida has the highest percentage of elderly residents in the US. A full 19% of Florida’s population is over 65, and the numbers are increasing. It’s estimated that by 2050, elderly people in the US will top 80 million. Many of these elderly are financially well-off, and some are millionaires. A number of them will pass along their wealth to their children and grandchildren. These sums may be transferred more than once through parentage. So it’s highly likely that these elders can and will be targeted for fraud by any number of people. From distant family members who are suddenly friendly to caretakers, neighbors, brokers and financial advisors, and “new friends,” they all see an elderly person with money as an easy target.  In our Silver Law securities arbitration and investment arbitration blogs, we highlight individuals who were caught taking financial advantage of their investment clients. In many cases, the investors are elderly, and sometimes, inexperienced at investing. And in some cases, the brokers and advisors are elderly themselves, caught committing fraud after a successful decades-long career. These individuals should understand what constitutes fraud, particularly against elderly clients. Still, they do it anyway. Continue reading ›

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It’s a story we’ve heard repeatedly: an elderly individual has been fleeced out of a large sum of money. In many cases, it was all the money they had, and don’t have a clue on how to get it back. Americans over the age of 65 are 15% of the general population and hold a considerable amount of wealth. Many elders are particularly trusting of people when they shouldn’t be. Because they mistakenly trust someone that took advantage of them, they may be too embarrassed to speak up or press charges. In many cases, the victim is dependent on the abuser for their everyday needs, such as a relative or hired caretaker. Some elders have pensions and investments to pay their expenses, whereas others have on Social Security as their only source of their income. Fraudsters pay no attention to income source or level. In short, the answer is: yes. But that doesn’t mean elder financial fraud is being ignored.It’s a story we’ve heard repeatedly: an elderly individual has been fleeced out of a large sum of money. In many cases, it was all the money they had, and don’t have a clue on how to get it back.

Americans over the age of 65 are 15% of the general population and hold a considerable amount of wealth. Many elders are particularly trusting of people when they shouldn’t be. Continue reading ›

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