Securities Arbitration Lawyers Blog

California Broker Kelly Althar Receives Permanent Ban from FINRA after Elder Fraud Case

April 20, 2017 | Silver Law Group

iStock-184964668

The broker is reported to have made risky investments that lost a client most of her retirement savings

Early in 2017, the Financial Industry Regulatory Authority (FINRA) permanently banned Kelly Althar from acting as a broker. This action was the result of several allegations, including excessive trading, unsuitable recommendations, and possible elder financial fraud.

A 10-year veteran of the securities industry, Althar worked for these six firms, starting in 1995:

Elder Financial News Roundup: Daniel H. Glick and Investment Professionals Inc.

April 20, 2017 | Silver Law Group

Chicago investment advisor Daniel H. Glick. accused of stealing millions from elderly clients

In late March, the SEC won a temporary restraining order and asset freeze against Chicago, Illinois broker Daniel H. Glick. Glick – along with his firm, Financial Management Strategies Inc. – was accused of taking money from elderly clients and utilizing it for personal use, including spending it on a Mercedes. To cover up his actions, he is reported to have then created false account statements that exaggerated investment amounts and overstated the cash available.

The SEC had previously sued Glick, and in late March, U.S. District Judge Virginia M. Kendall signed an order freezing his personal assets and those of FMS, along with his other company, Glick Accounting Services Inc.

How FINRA is Addressing Elder Financial Fraud

April 20, 2017 | Silver Law Group

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

What Constitutes Elder Financial Fraud?

April 19, 2017 | Silver Law Group

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.

Bank-Based Brokerage Firm Fined $100,000 for Selling Senior Citizens Unsuitable Securities

April 18, 2017 | Silver Law Group

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.

Silver Law Group Files Securities Arbitration Claim Relating to California-based Cetera/Investors Capital Corp Broker Daniel B. Vazquez

April 18, 2017 | Silver Law Group

Our firm has filed a complaint against Irvine, California-based Cetera Advisors (CRD# 10299) relating to broker Daniel B. Vazquez Sr. (CRD# 3141463) after FINRA permanently barred Vazquez.

According to Vazquez’s FINRA BrokerCheck report, FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public in June 2016 for failing to respond to a FINRA request for information.

The permanent bar comes just two months after a FINRA arbitration was filed alleging unsuitable recommendations and unauthorized trades which led to portfolio losses.

Elder Financial Abuse: Power of Attorney Scams

April 17, 2017 | Silver Law Group

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?

Former LPL Financial LLC Broker Larry Allen Stapp is Suspended and Fined by FINRA

April 17, 2017 | Silver Law Group

Allegations of borrowing from a customer and potential elder financial fraud caused LPL Financial to discharge Stapp after almost 20 years of employment

Midland, Texas-based broker Larry Stapp allegedly borrowed $200,000 from an LPL Financial LLC customer, according to the Financial Industry Regulatory Authority (FINRA). Stapp also reportedly falsely stated to the firm’s representative that the loan was not from a firm customer. In fact, according to FINRA, Stapp “submitted branch manager/financial advisor questionnaires to the firm in which he affirmed his compliance with the firm’s policies and procedures that [were] false because Stapp had borrowed funds from the firm’s customer that had not been repaid at the time each questionnaire was completed.”

In addition, these funds were reportedly borrowed from an 81-year old customer, leading to possible concerns over elder financial fraud.

Elder Financial Fraud is on the Rise Nationwide, Says a New York State Study

April 14, 2017 | Silver Law Group

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.

Illinois Broker Brian Sak Receives Permanent Bar from FINRA

April 7, 2017 | Silver Law Group

The former Morgan Stanley broker is reported to have convinced clients to invest in his own real estate deal

After numerous customer complaints, the Financial Industry Regulatory Authority (FINRA) began an investigation into the actions of broker Brian Sak. FINRA reported that he recommended to several clients that they invest in an outside business deal that his member firm knew nothing about. When Sak failed to provide FINRA with information, he was permanently barred from acting as a broker.

The investment Sak solicited his clients for was reportedly a real estate deal in which he himself was a partner. At the time, he was working for Morgan Stanley in Deerfield, IL. When the firm found out what Sak was doing, he was given the opportunity to resign.