elder financial fraud

Good News About Elder Financial Fraud?

May 19, 2017 | Silver Law Group

Yes and no. One survey states the proportion of elder financial fraud victims is down, but thieves are choosing more lucrative targets

According to estimates, billions of dollars are stolen from elderly people every year. Whether by financial professionals, caregivers, or even family members, financial elder fraud has been rampant in the U.S. for years.

“Older Americans make attractive targets for financial exploitation because many have accumulated some wealth in the form of retirement savings or home equity,” said Richard Cordray, direction of the Consumer Financial Protection Bureau (CFPB). “They can be isolated and lonely, and some may have impaired physical or mental capacity that makes them especially vulnerable.”

New York Study Exposes the Hard Truth About the Cost of Elder Financial Fraud

May 9, 2017 | Silver Law Group

Raising awareness about the exploitation of seniors and vulnerable adults.

It’s an unfortunate fact: senior citizens are common targets for individuals seeking to take advantage of them, especially when it comes to money. As the exploitation of senior citizens and vulnerable adults continues to rise, the New York State Office of Children and Financial Services (OCFS) has taken the lead in researching just how broad-reaching and costly this crime truly is.

In a 2016 press release, OCFS announced the results of its study of the impact of financial crimes against the elderly. The study, titled The New York State Cost of Financial Exploitation, represents the combined efforts of numerous state agencies seeking to raise awareness of elderly financial fraud and aims to aid in preventing continued exploitation.

Home Visits: We Can Come to You

May 1, 2017 | Silver Law Group

Unfortunately, some brokers and financial advisors devise ways to charge additional commissions, take unnecessary investment risks, or even defraud their clients. And one of the most egregious varieties of fraud or other improper financial activity involves taking advantage of older individuals, some of whom are not privy to information that is withheld by a financial adviser, and others who may have diminished mental capacity.

Although it’s common in the U.S., elder financial fraud frequently goes unreported. In many cases, this is because the person lacks information, is unaware of their rights, or does not know that there are mechanisms to potentially recover lost funds and hold brokers and financial advisers accountable. It’s also possible that an individual may be unable to travel, or he or she is simply uncomfortable giving too many details over the phone.

The Silver Law Group wants to help. If you have been the victim of elder financial fraud, we will gladly send an attorney to your home to discuss the situation. We’ll go over your options and discuss what steps to take next.

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.

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.

Bahram Mirhashemi Facing Allegations of Elder Financial Fraud

August 15, 2016 | Silver Law Group

Bahram Mirhashemi Facing Allegations of Elder Financial Fraud on silverlaw.com

Serious allegations lead to termination at Accelerated Capital Group and permanent bar from FINRA

Silver Law Group is investigating allegations against broker Bahram Mirhashemi for unauthorized trades, unsuitable mutual find switching, churning of customer accounts, fraud, elder financial fraud, and several other serious violations.

Mirhashemi has worked in the financial services industry for 18 years and was employed by several firms during that time period. His most recent position was with Accelerated Capital Group in Irvine, California from September of 2012 through January of 2016.

AlphaBridge Capital Management Charged By SEC for Fraudulent Fund Valuation Scheme

August 5, 2015 | Silver Law Group

Hedge fund firm owners agree to $5 million combined settlement

On June 1, 2015 the Securities and Exchange Commission charged Greenwich, Connecticut-based AlphaBridge Capital Management and its two owners with fraudulently inflating the prices of securities in funds they managed. These inflated valuations caused the funds to pay higher management and performance fees to AlphaBridge.

According to the SEC news release, AlphaBridge Capital Management and its owners – Thomas T. Kutzen and Michael J. Carino – “told investors and its auditor that it obtained independent price quotes from broker-dealers for certain unlisted, thinly-traded residential mortgage-backed securities.” In fact, what the firm did was give “internally-derived valuations to broker-dealers to pass off as their own.”

Silver Law Group Represents 93 year old Victim of Elder Financial Abuse

July 3, 2014 | Silver Law Group

According to the Sun Sentinel, the Palm Beach County Sheriff’s Office has charged Sultaine Valcius of Boynton Beach with fraud after taking $1.4 million from a 93 year-old man that hired her as a medical aide.

The Sun Sentinel reports Sultaine Valcius, 48, is charged with organized scheme to defraud for taking the money from her employer for at least five years. Ms. Valcius requested the money for various reasons, including, nursing school tuition, purchasing a home as an investment property, repairing a home in Haiti that had been destroyed by an earthquake and for general financial assistance due to her husband purportedly losing his job. However, Ms. Valcius was allegedly never enrolled in school, the house that was purchased was used as the primary residence by Ms. Valcius and her husband was never laid off from the job she claimed he had.

Ms. Valcius convinced the elderly gentleman to write her numerous checks ranging from a couple of hundreds of dollars to tens of thousands of dollars from two of his brokerage accounts maintained at two national broker/dealers. However, even if convicted, it is unlikely that Ms. Valcius will have the adequate resources to repay the victim.

Reuters’ Article Highlights the Risks of Variable Annuities to Investors

March 28, 2014 | Silver Law Group

Of all the guarantees, bells and whistles associated with variable annuities, perhaps the biggest guarantee is the steep up-front commission the financial advisor can earn for selling the product.

According to a recent Reuters’ article, variable annuity sales in the U.S. totaled $142.8 billion last year, and brokers can earn 7 percent or more in commissions on the insurance products. Based on simple arithmetic, the commissions earned on an annual basis exceeds a billion dollars.

However, investors may be damaged when these complex products are not properly explained, tax or liquidity factors are not considered, or the advisor engages in “twisting” of improper annuity switching. “Twisting” happens when a broker encourages a client to trade in an older annuity to buy a different one, often at significant cost to the client and benefit to the broker.