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As Americans get older, FINRA regulations hope to prevent many people from becoming victims of investment fraud

Nearly 20% of all Americans 65 and older have, at one time or another, become the victim of elder financial fraud – and with this age group one of the most rapidly-growing segments of the U.S. population, regulatory agencies like FINRA have decided they need to take new steps to combat the problem.

Senior’s growing segment of U.S. wealth makes them a ripe target for unethical brokers and financial advisors

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An explanation of Florida’s statute

It’s an unfortunate fact, but often people are not treated very well as they age. And due to ailments, disabilities, or reduced cognition, the elderly are especially vulnerable to being taken advantage of. In many circumstances, this has to do with money, and frequently a financial professional is involved.

When someone hires a broker, they expect him or her to look out for their best interests. However, sometimes brokers think about themselves and their own financial situation before either their clients or professional regulations and ethics, and as a result, they commit elder financial fraud.

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Investment Professionals, Inc. had been previously investigated for using high-pressure tactics on elderly clients in Massachusetts

A San Antonio-based investment firm operating in Massachusetts was recently fined $100,000 for selling seniors unsuitable investments. The firm, Investment Professionals, Inc., (IPI) which operates out of community banks throughout the state, had been the subject of an investigation by the Massachusetts Securities Division.

Financial advisors and the firms that supervise them have a duty to know their clients and their investment goals, and only recommend investments that are suitable for their financial situation. Unsuitable investment advice violates securities industry regulations, and recommending unsuitable, risky investments to elderly clients may be considered a form of elder financial exploitation. Unfortunately, this was not the first official state investigation of IPI’s marketing and sales methods.

Giving someone power of attorney over an individual legally allows them to make certain decisions on that person’s behalf. This is often necessary in situations where a person is elderly, intellectually disabled, or otherwise incapacitated. When properly used, giving power of attorney to a trusted individual can often make things easier for

When properly used, giving power of attorney to a trusted individual can often make things easier for a person who is unable to travel, sign paperwork, open or close bank accounts, deal with insurance policies, and engage in other necessary financial activities. Unfortunately, power of attorney can be abused, often by financial advisors or brokers, leading to serious financial consequences for the victim.

What are the major types of power of attorney?

Elder Financial Fraud is on the Rise Nationwide on elderfinancialfraudattorneys.com

New statistics show that elder financial exploitation is getting more common

One of the fastest-growing segments of the U.S. population is baby boomers, with about 10,000 of them turning 65 every day. Unfortunately, the elderly are also some of the most vulnerable members of society, especially where their finances are concerned.

According to a recent study from the state of New York, every year around five million older Americans are financially exploited. Another study – this one from MetLife – found that the annual losses suffered by seniors from elder financial exploitation total almost $3 billion. Perhaps most troubling of all is that elder financial fraud is often not reported.

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