She trusted her financial advisor with everything. Then he stole $300K.

By Karin Price Mueller 

He promised to take care of her money.

Pay her bills.  

Help her with investments to make sure her money would last.

Instead, he siphoned more than $300,000 from the 90-year-old woman’s accounts. Rather than pay her bills, he used the funds to pay his own, prosecutors alleged.

What John Boston, once a legit financial advisor from Verona, did to his victim is a classic case of elder fraud.

He’s now facing five to 10 years in state prison and a fine of up to $150,000 after his convictions for theft, prosecutors said. Sentencing is later this summer.

“Cases like this demonstrate the devastating impact financial exploitation can have on older adults and their families,” Acting Insurance Fraud Prosecutor Bernard Cooney said in a statement.

The Attorney General’s Office spotlighted the case last week in recognition of World Elder Abuse Awareness Day.

The victim was newly flush with cash after inheriting “substantial assets” when her brother died.

Prosecutors alleged Boston, 50, signed a contract with the victim to manage her assets and her financial affairs. He was indeed a registered financial adviser, but he never told his employer, and he never registered the woman as a client — as required by the Financial Industry Regulatory Authority, or FINRA.

He convinced the woman to give him a durable financial power of attorney, a document to grant permission to a trusted person to manage your money if you’re ever incapacitated and unable to make your own financial decisions.

Instead of working for her best interests, Boston took out funds through a series of ATM withdrawals, bank transfers and other transactions, prosecutors said. He diverted her Social Security benefits for his own personal use, they said.

It took less than two years.

Elder abuse can come in many forms, but we’re going to stick to financial exploitation here. It causes $28.3 billion in losses annually, a staggering number reported by the National Council on Aging. It defines elder abuse as “an intentional act or failure to act that causes or creates a risk of harm to an older adult.”

Elder financial abuse can happen to anybody, and it’s not only traditional scammers at work.

“Perpetrators can range from close family, extended family, caregiving staff, or strangers,” according to the New Jersey State Library. “They may take money without permission, fail to repay money they owe, charge too much for services, or not do what they were paid to do.”

Elder financial abuse is vastly underreported, the National Adult Protective Services Association said.

Only one in 44 cases is actually reported, it said, and 90% of cases involve family members or others who are trusted — like a trusted financial advisor.

People often don’t report financial losses from fraud because they’re embarrassed. We’ve seen that happen time and time again.

But you can help to protect your loved ones by looking out for some red flags. These 14 warning signs are offered by the American Bankers Association. Look out for:

1. Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals
2. Changing from a basic account to one that offers more complicated services the customer does not fully understand or need
3. Withdrawals from bank accounts or transfers between accounts the customer cannot explain
4. A new “best friend” accompanying an older person to the bank
5. Sudden non-sufficient fund activity or unpaid bills
6. Closing CDs or accounts without regard to penalties
7. Uncharacteristic attempts to wire large sums of money
8. Suspicious signatures on checks, or outright forgery
9. Confusion, fear or lack of awareness on the part of an older customer
10. Checks written as “loans” or “gifts”
11. Bank statements that no longer go to the customer’s home
12. New powers of attorney the older person does not understand
13. A caretaker, relative or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation
14. Altered wills and trusts

If you see something suspicious, you can report it to several different agencies.

Start with Adult Protective services at (855) TELL-APS, or you can see a list of county offices here.

For investment and banking scams, contact the state Bureau of Securities by phone at (866) I-Invest or email at njbos@dca.lps.state.nj.us. You can also file a complaint online.

The Medicaid Fraud Control Unit handles cases involving Medicaid recipients and fraud, theft, or abuse in health care settings. You can email NJMFCU@njdcj.org or call (609) 292-1272. The state Long-Term Care Ombudsman will handle exploitation in nursing homes and assisted living facilities. Call 1-877-582-6995 or email ombudsman@ltco.nj.gov.

Let’s all work to help prevent fraud and take care of our loved ones and neighbors. 

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She trusted her financial advisor with everything. Then he stole $300K. 

Essex County Financial Advisor Indicted in Alleged Theft of More Than $75,000 from 90-Year-Old Victim

For Immediate Release: October 11, 2023

Office of the Attorney General
– Matthew J. Platkin, Attorney General
Office of the Insurance Fraud Prosecutor
– Al Garcia, Interim Insurance Fraud Prosecutor

TRENTON — Attorney General Matthew J. Platkin and Interim Insurance Fraud Prosecutor Al Garcia announced today that an Essex County man has been indicted on charges related to the financial exploitation of a 90-year-old woman, after the suspect allegedly abused his authority over her finances to steal tens of thousands of dollars from the victim.

John Boston, 47, of Verona, New Jersey, has been indicted by a state grand jury on one count of theft (2nd degree) and one count of theft by failure to make required disposition (2nd degree), following an investigation by the Office of the Insurance Fraud Prosecutor’s (OIFP) Medicaid Fraud Control Unit (MFCU). The investigation began after a referral from the Office of the Long-Term Care Ombudsman. At his arraignment last month in state Superior Court in Essex County, Boston pleaded not guilty.

According to the investigation, Boston, a registered financial advisor at the time, signed a contract with the victim, agreeing to assist in managing her affairs and assets. However, the defendant never obtained authorization from his employer to take on the victim as a client, failed to notify his employer and failed to register the victim as a client, as required by the federal Financial Industry Regulatory Authority.

Boston then signed a durable financial power of attorney with the then-90-year-old victim on or about June 27, 2017, and it is alleged that through a series of transactions, including ATM withdrawals and bank transfers, Boston diverted more than $75,000 from the victim. It is alleged that Boston used his own debit card to withdraw the money and spent it on his own bills and purchases for himself and his family. Meanwhile, according to the investigation, he defaulted on the victim’s bills and neglected her care and wellbeing.

“Victimizing our senior citizens under the guise of providing professional services occurs too often, and the effects on the victims and their families can be devastating,” said Attorney General Platkin. “No one should have to fear losing their life’s savings or their home because someone purporting to be a professional violated their duty and trust. We will continue to hold accountable those who commit elder abuse.”

“We have resources in place whose sole mission is to eradicate this type of exploitation,” said Interim Insurance Fraud Prosecutor Garcia. “We are steadfast in investigating and prosecuting these cases. If you target our elderly, you will get caught, and you will face justice.”

Second-degree charges carry a sentence of five to 10 years in New Jersey State Prison and a fine of up to $150,000.

The charges are merely accusations and the defendant is presumed innocent until proven guilty.

Deputy Attorney General Lawrence Krayn is prosecuting the case for the OIFP – MFCU, under the supervision of Assistant Bureau Chief Michael Klein and Bureau Chief Heather Hadley. Detectives Little Trenard and Chantel Blake led the investigation, under the supervision of Lt. Jarek Pyrzanowski, Lt. Joseph Jaruszewski and Deputy Chief Rich King. Investigator SeRonne Anderson and Analyst Keira McRae-Wiggins also played integral roles in the investigation. Interim Insurance Fraud Prosecutor Garcia thanked his staff for their work on this case, and to the Long-Term Care Ombudsman for the referral.

New Jersey MFCU’s total funding for federal fiscal year (FY) 2023 is $9,418,641. Of that total, 75 percent, or $7,063,984, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $2,354,657 for FY 2023, is funded by the State of New Jersey.

OIFP’s Medicaid Fraud Control Unit specifically protects Medicaid beneficiaries and the Medicaid Program from fraud, waste, and abuse. Further, the Unit may review complaints of abuse or neglect of patients or residents in care facilities regardless of the funding source. To report fraud, abuse or neglect, please email NJMFCU@njdcj.org or call 609-292-1272. If you are concerned about insurance cheating in general, and have information about insurance fraud, you can report fraud anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting www.NJInsurancefraud.org. State regulations permit a reward to be paid to eligible persons who provide information that leads to an arrest, prosecution, and conviction for insurance fraud.

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Essex County Financial Advisor Indicted in Alleged Theft of More Than $75,000 from 90-Year-Old Victim

Matthew Clason From LPL Financial Gets 2.5 Years In Prison For Theft From Elderly Client

By Harion Camargo

Matthew Clason, a one-time LPL Financial FA (financial advisor), has got 30 months behind bars, against a possible 20 years, for stealing several hundred thousand dollars from an elderly client. The sentence was announced by U.S. District Judge Michael Shea in Hartford, Connecticut, and also requires him to pay restitution of $639,580.

Clason, based in Cheshire, Connecticut, pleaded guilty to one count of wire fraud in May. He admitted to stealing over $600K from an elderly client who was not named. Currently, out on bond, Clason is required to report to prison on the 28th of February, 2022, as per the U.S. Attorney’s Office.

Financial Elder Abuse

Financial abuse is a common problem with elderly people for many reasons. Sometimes, elder abusers may be suffering from mental impairments such as Alzheimer’s or dementia. These health issues can be exploited by the perpetrator to take control of their finances and then use them for their own gain.

Even if victims are in good health with no mental impairments they can still be targeted for financial exploitation, often from their closest friends.

Elder financial abuse most commonly occurs from adult children. However, it can also happen in nursing homes or assisted living facilities and from financial caregivers such as a power-of-attorney, trustee, guardian, conservator, or other financial caretakers. The Consumer Financial Protection Bureau advises you to watch out for any new friends who seem to be controlling and possessive of your loved one. This could be a sign that there is elder financial abuse.

Nursing staff or caregivers may take a resident’s credit cards or checkbooks in nursing homes or assisted living facilities.

Sometimes they may do other things that are harder to spot. For example, they might trick a resident into signing forms that transfer ownership in cars, homes, or bank accounts without their consent or knowledge. Or, pressure them into writing a new will.

When it comes to financial abuse, race is a significant risk factor. In 2010, a study showed that elderly African Americans were more likely to be exploited than non-African American residents (23.0% vs. 9.4%).

Matthew Clason’s Modus Operandi

According to information made available by the U.S. Attorney’s Office for the District of Connecticut, Clason opened a joint bank account with the client (victim). Then he transferred over $668K from the client’s investment accounts to this joint account, from which he withdrew over $621K in cash apart from transferring money into his credit card as well as personal bank accounts, thus draining it out.

Clason’s History

Clason has been in the securities industry from 2004 onwards. He registered with Lincoln Financial in 2007 and left them for LPL Financial in 2016, as per information available on his BrokerCheck record.

He was discharged by LPL in August last year on suspicion of maintaining a joint account with an LPL customer and that he “engaged in liquidations of securities in customer’s Firm account, transferred funds to joint bank account, and withdrew funds.”

In September 2020, he was barred by the Financial Industry Regulatory Authority (FINRA).

It was also in September 2020 that the Securities Exchange Commission (SEC) initiated action against him in the current case of theft from an elderly client. In view of the guilty plea in May, he was also barred by the SEC.

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Matthew Clason From LPL Financial Gets 2.5 Years In Prison For Theft From Elderly Client

Grant pleads not guilty at arraignment

Authorities say former local businessman stole more than $1.3 million from clients

Dean Grant

 by Billy Hobbs

A 54-year-old former Milledgeville businessman, accused of stealing more than $1.3 million from clients while working as a financial advisor, pleaded not guilty to 23 felony criminal charges Monday in Baldwin County Superior Court.

Dean Harrison Grant, who formerly lived and worked in Milledgeville and now resides in Roswell, Ga., entered his plea during an arraignment hearing. Grant was represented at the hearing by his attorney, Carl Cansino, of Milledgeville.

Grant, who was arrested for the alleged crimes and who served several days in the Baldwin County Law Enforcement Center, was indicted last November by a grand jury in Baldwin County.

Grand jurors indicted Grant on two counts of trafficking an elder person by financial exploitation, 10 counts of insurance fraud, nine counts of theft by taking, and one count of forgery in the first-degree, according to records filed in the Baldwin County Superior Court Clerk’s Office.

Grant was released from jail after posting a $750,000 bond on March 15 last year.

“This devious individual stole more than $1.3 million of hard-earned money from Georgians,” said Georgia Commissioner of Insurance and Safety Fire Commissioner John F. King. “These victims put their trust in him, and in some cases, their livelihood. He abused that trust and left the victims out to dry. This should serve as an example to all of the people who feel they are above the law; these heinous acts will not be tolerated in this state.”

King’s comments were disseminated to media outlets in a press release after grand jurors returned the 23-count indictment against Grant.

Grant was the founder and managing partner of GIF Strategic Advisors, located at 136 W. McIntosh St., Suite A in Milledgeville.

He was taken into custody on charges last February.

At that time, the state’s insurance and safety fire commissioner said Grant was accused of receiving a total of $589,384.33 from three of his victims. The money was reportedly given to Grant for him to secure insurance-related investments, a total of $447,589.26 of which was taken from two elderly customers.

“He did not obtain any insurance investments with the money he received from his customers and instead used it for personal benefit,” King said in the press release.

Later, Grant was charged with seven other additional counts of insurance fraud and seven counts of theft by taking (fiduciary), according to the state official.

“He was accused of taking an additional $785,000 from three customers for him to secure insurance-related investments, bringing the total monetary value received from the victims to $1,374,384.33,” King said.

The case was jointly investigated by Baldwin County Sheriff’s Office Detective Capt. Brad King and Special Agent Jason S. Jones with the Georgia Insurance Commissioner’s Office.

The sheriff’s office learned of the questionable activities involving the suspect in November 2017.

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Grant pleads not guilty at arraignment

San Diego financial adviser accused in Ponzi scheme appears in court

SAN DIEGO (KGTV) - A San Diego financial adviser suspected of bilking his clients in an alleged Ponzi scheme pleaded not guilty to some 80 felony counts Friday.

The San Diego County District Attorney’s Office said Christopher Dougherty appeared before a judge Friday afternoon to answer to accusations that he took money from his mostly elderly clients.

DA’s Office officials said that criminal charges are being announced “in a five-year Ponzi scheme that defrauded more than 50 people in San Diego County out of nearly $8 million.”

Some of the alleged victims appeared in court.

"We've had to rely upon our children now which that should never be; we have wonderful children," said one woman.

Sheriff’s officials told Team 10 Dougherty was arrested Thursday morning at his home. His bail was set at $5 million.

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San Diego financial adviser accused in Ponzi scheme appears in court

Fiduciary Rule Set to Come into Effect in June

The so-called Fiduciary Rule is set to move forward in June, the Secretary of Labor, Alexander Acosta, announced in an op-ed in the Wall Street Journal.

The fiduciary rule, which requires investment advisors to act “in the best interest of their client”, will now be expanded to include anyone managing retirement accounts: 401K, Individual Retirement Accounts, 403B’s, etc.

While no one argues with the idea that investment advisors should provide advice which is in the best interest of their clients, critics of the rule believe that implementing it will lead to burdensome regulations and to a reduction in the number of investment advisors.

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Fiduciary Rule Set to Come in Effect in June

Dublin Financial Advisor Pleads Guilty To Bilking Elderly Client

A Dublin financial advisor has pleaded guilty to defrauding an elderly client.  Jon Schmidhammer pleaded guilty to unlawful securities practices.

Franklin County prosecutors say Schmidhammer stole 550 thousand dollars from an 81-year-old woman's bank account. Prosecutors say he did so by transferring the money from her investment accounts to her bank accounts and writing checks to himself or paying personal bills with the funds.

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Dublin Financial Advisor Pleads Guilty To Bilking Elderly Client

Bill Introduced To Prevent Financial Elder Abuse

Rep. Sarah Maestas Barnes

SANTA FE ― Rep. Sarah Maestas Barnes (R-Bernalillo) has introduced legislation to prevent financial elder abuse in New Mexico. Her legislation, House Bill 326, would enhance protections to shield seniors from fraud and financial exploitation. The bill is cosponsored by Rep. Nick Salazar (D-Rio Arriba).

The legislation, also known as the Protecting Vulnerable Adults from Financial Exploitation Act, clearly defines financially abusive acts, and it permits investment advisers to report suspected incidents of financial abuse to state agencies. It also grants immunity to investment advisers for disclosing information in good faith to state agencies or other third-parties. The legislation would give advisers the authority to delay disbursements if they suspect their client is being financially exploited, and it would require advisers to receive training in identifying incidences of financial exploitation.

“According to a recent survey, one out of every five seniors over the age of 65 has been the victim of financial fraud,” Maestas Barnes said. “Financial exploitation of elders has tragic consequences for seniors and their families. As policymakers, we should make every effort to protect vulnerable adults from fraud and financial abuse.”

The bill has been referred to the House Business and Industry Committee and the House Judiciary Committee.

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Bill Introduced To Prevent Financial Elder Abuse

Exploitation of Elderly Woman by a "Friend" is Another Chapter in an Increasingly Common Story

No one who knew Erma Louise Giaccetti would have ever taken her as someone capable of being conned.

At age 84 in 2008, the Independence woman was a presence. She stood 5 feet 10, a railroad engineer’s widow with a sweep of coiffed white hair, a thin cigarette poised in her fingers and a gossipy tongue that, to the dismay even of her family, could turn as cold as it was more often kind.

Joyce Ciaccetti

“She was very domineering,” said daughter-in-law Joyce Giaccetti. “She would talk constantly about people. I think that’s why she didn’t have many friends.”

But in the summer of 2008, she got one: Linda Gayle Scaife, a neighbor from decades ago who had returned to the Kansas City area, knocked on Louise Giaccetti’s door and suddenly became what the widow called her “new best friend.” Giaccetti couldn’t have been more wrong. Over the next three years, until her death, her family ties were destroyed. She lost her home and most of her life savings.

As revealed by family and court documents, the deceit and theft perpetrated by Linda Scaife could easily serve as a cautionary tale for all those concerned about financial exploitation of the rapidly growing number of elderly Americans.

The scams have a vast range: greedy children and paid caregivers writing checks on their elders’ savings, identity and Medicaid fraud, unscrupulous financial advisers, and “sweetheart” scams that use romance to prey on people’s affections and bank accounts.

“The first thing I can tell you is that anyone who tells you they know how much of this is going on is blowing smoke. We don’t know,” said Doug Shadel, an expert on financial fraud with AARP in Washington state. “The reason we don’t know is that people are embarrassed to admit they’ve been taken. There is a lot of suffering in silence.”

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Exploitation of Elderly Woman by a "Friend" is Another Chapter in an Increasingly Common Story

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Investment Fraud Against Seniors Remains a Constant Threat

Elder financial exploitation is a growing problem. Many senior citizens have worked for decades, paid off their homes and saved money for retirement. However, these assets can make seniors a prime target for individuals who seek to financially exploit them.

Seniors account for 13 percent of the U.S. population, and according to the Virginia TRIAD, a cooperative effort of law enforcement agencies and senior citizen organizations, seniors make up 30 percent of consumer fraud victims.

Additionally, data from the National Adult Protective Services Association show that 1 in 20 elder adults experienced financial mistreatment occurring in the recent past.

Floridians age 65 and older who are looking to invest should be cautious. Financial scams can drain senior citizens of their savings.

A fraudulent annuity scam involves misleading investment practices aimed at seniors. An annuity is a series of income payments made at regular intervals by an insurance company in return for a premium or premiums you have paid. Elder adults may be manipulated into purchasing an unsuitable annuity or replacing existing annuities with a new one simply for the scammer's financial gain.

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Investment Fraud Against Seniors Remains a Constant Threat

Family Members Accused of Financial Exploitation (Over $400,000)

Three members of a family have been charged with a total of 32 felonies after authorities say they bilked another family member out of nearly $400,000.

Jessica Lynn Polikowsky, 38, and Jason Donald Polikowsky, 30, both of Chatfield, have each been charged with 14 counts of financial exploitation of a vulnerable adult. Donald George Polikowsky, 62, of Rochester, faces four counts of the same charge.

The case began Nov. 29, 2012, when the Olmsted County Adult Protection team received information about a possible exploitation. A witness from a financial advisement company told the alleged victim's daughter that Jessica Polikowsky had been accessing the victim's accounts frequently and had taken out large amounts. 

The victim had been diagnosed with dementia-Alzheimer's in 2009. 

The financial consultant called the victim to talk about it, the complaint says, and she "seemed confused and didn't understand what was being talked about." Jessica Polikowsky then contacted the consultant and told him to send information directly to her, not the woman.

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Family Members Accused of Financial Exploitation

Brokers Dealing With Older Investors Get More Scrutiny

The Massachusetts securities regulator wants to know how often older investors complain to their securities firms, and what the firms do about it.

The Massachusetts Securities Division sent a questionnaire to 162 brokerage firms asking about complaints received from clients 65 or older over the past two years, including what products those complaints were related to. The regulators also want to know whether firms have policies and procedures that would amount to heightened oversight about transactions by senior investors.

“We have seen an increase in the actions brought by the Securities Division that involved senior investors in one way or another,” said a spokesman for Massachusetts Secretary of the Commonwealth William Galvin.

Elderly investors have caused increasing concerns for regulators and brokers nationwide. More than one-third of enforcement action taken by state securities regulators since 2008 involved senior investors, says the North American Securities Administrators Association.

The issues regulators and brokerages wrestle with range from problems brokers face communicating with clients who suffer from dementia to outright elder abuse—by brokers, by relatives, by friends.

With more brokerage clients reaching retirement, regulators want to know exactly how big a problem they are up against with bad brokers taking advantage of elderly clients’ trust and forgetfulness. Brokerage firms, meanwhile, struggle to determine what exactly they can do to properly advise clients who start to forget facts, dates, and conversations, and who might ask advisers to help them with unwise investment transactions.

Even lawyers seem to be a bit lost. The American Bar Association said earlier this month that attorneys “often fail to get involved” in elder-abuse issues, in part because they do not recognize the abuse or are unsure of their ethical obligations. The ABA added a webinar to raise awareness.

On Tuesday, a survey the ABA conducted with the Investor Protection Trust and the Investor Protection Institute revealed that more than one out of three attorneys says they are or may be dealing with the victims of elder investment fraud and financial exploitation.

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Brokers Dealings With Older Investors Get More Scrutiny

Three Groups Join Forces to Teach Lawyers How to Spot Financial Exploitation in Elderly Clients

Three groups announced today that they’re launching the Elder Investment Fraud and Financial Exploitation Prevention Program Legal.

The Investor Protection Trust, the Investor Protection Institute and American Bar Association said the program will develop, test and implement national continuing legal education to teach lawyers how to:

* Recognize clients’ vulnerability to financial exploitation and investment fraud due to mild cognitive impairment,
* Identify elder investment fraud and financial exploitation in their clients.
* Reported suspected instances of elder investment fraud and financial exploitation to appropriate authorities.

“We know that a shockingly large number of older Americans are already victims of financial swindles, and millions more are in danger of being exploited in such a fashion,” said Don Blandin, chief executive of the Investor Protection Trust, a nonprofit organization that conducts investor education. “Front-line legal professionals who deal everyday with older Americans are ideally positioned to spot the impaired mental capacity that can leave seniors vulnerable to financial abuse.”

While lawyers work closely with the finances of seniors, they aren’t properly trained in how to spot signs of financial exploitation, said Charles Sabatino, director of the ABA’s Commission on Law and Aging.

“This project directly benefits the legal profession and the older clients whom they represent,” he said.

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Three Groups Join Forces to Teach Lawyers How to Spot Financial Exploitation in Elderly Clients

'Adviser' convicted of bilking elderly Bradenton woman out of $1 million

An unlicensed financial adviser was convicted Wednesday of grand theft and other charges in a scheme to defraud an 82-year-old Bradenton woman out of $1 million.

Ronald J. Perrault, 42, was convicted on grand theft and organized scheme to defraud charges associated with them, according to a release from Florida Chief Financial Officer Jeff Atwater. Perrault faces up to 35 years in prison at his sentencing Dec. 4.

The state Department of Financial Services’ Division of Insurance Fraud found that Perrault, while acting as an unlicensed financial adviser for the woman, defrauded her of $727,000 during the last five years and more than $1 million throughout the course of their relationship, the release said.

The investigation found that the woman initially invested $50,000 in Perrault’s fraudulent business in October 2007, followed by $100,000 in December 2007, according to the release. During the next four years, Perrault convinced her to invest an additional $577,000. She continued to submit to Perrault’s demands until her account was depleted. From 2008 until his arrest in 2011, the victim was Perrault’s only client and an investigation found all funds were transferred to Perrault for personal use.

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'Adviser' convicted of bilking elderly Bradenton woman out of $1 million

SEC Sanctions MI Broker for Bilking Elderly Investors

The Securities and Exchange Commission has imposed a fine and a cease-and-desist order against Lewis J. Hunter for defrauding elderly clients of over $300,000.

In September 2010 and February 2011, the SEC found that Hunter recommended to two long-time elderly clients that they make a $250,000 investment in a Canadian bank. Hunter repeatedly assured the clients that the investment was guaranteed and provided the clients with Guaranteed Investment Certificates (GICs) from the bank. The GICs were purportedly issued by HSBC Bank Canada and guaranteed 15% monthly interest payments for two years.

However, Hunter fabricated the GICs and used the clients' money to pay various personal and business expenses, the SEC says. In addition, Hunter used the clients' own funds to make the 15% interest payments the clients expected to receive from the investment. Hunter also used the clients' own funds to repay a personal loan the clients had made to Hunter.

In a separate instance, Hunter persuaded a third long-time elderly client to make a $54,000 investment in U.S. Bank, the SEC found. Hunter guaranteed the client that he would not lose any money. However, Hunter never invested the money and instead used the funds to repay the personal loan he had taken with the first clients and for other personal and business expenses.

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SEC Sanctions MI Broker for Bilking Elerly Investors

FL Financial Advisor Found Guilty of Attempted Financial Exploitation of the Elderly

Longtime Lake Forest resident and financial advisor James P. Richter was found guilty of Attempted Financial Exploitation of the Elderly on April 4 by the Lake County Circuit Court. According to public records, the Class A misdemeanor carries a sentence of 12 months conditional discharge including 100 hours of community service and a $500 contribution to a charity. He’s also required to avoid all contact with the two senior citizens at the center of the case.

They’re a married couple in their late-70s/early-80s who have lived in Lake Forest for 45 years and, they said, had been clients of Richter’s since 1993. They spoke with GazeboNews on the condition of anonymity to raise awareness of the issue of exploitation of the elderly. GazeboNews called and emailed Richter and his attorney several times but were unable to get a comment from them.

The story of People vs. James P. Richter began in February 2010, when, according to Lake County Assistant State’s Attorney Stephen Scheller, Richter asked the couple for a $45,000 loan, which they gave him. Approximately one year later, he said, Richter asked for a second loan, this time in the amount of $15,000, which the couple also gave him. Scheller said that in both cases, Richter signed promissory notes.

In the fall of 2011, the couple contacted the Lake County State’s Attorney’s Office, which opened an investigation and eventually reached an agreement with Richter and his attorney, in which Richter pleaded to a misdemeanor if he paid the couple back in full, which he did, according to Scheller. He said that the amount of money involved would have warranted a felony charge if the money had not been repaid.

“Obviously, we want to charge the offender, but if we can get the victims’ money back, it doesn’t do us any good to throw the offender in jail for three years and not get a cent,” said Scheller. “This is a conviction on his record that won’t be expunged or go away. We’re happy we got the victims their money back, and we’re happy we got the conviction.”

Full Article and Source:
Lake Forest Financial Advisor Found Guilty of Attempted Financial Exploitation of the Elderly

Senior "Specialists" Often Swindlers

Sometimes titles are important: M.D., PhD., J.D. Then again, there are faux titles like “senior specialist,” which often tell me that some financial exploitation is afoot.

For years, regulators have been monitoring brokers who use titles like “retirement planning specialist.” It’s hard to say which of these designations are meaningful since they are so loosely regulated. In many cases, the financial services industry doesn’t want customers to know that little training or expertise is involved.
The Consumer Financial Protection Bureau (CFPB) recently issued a report on these titles, which helps to illuminate a specialized form of financial abuse:

The Bureau found that there are more than 50 different senior designations that financial advisers use to indicate that they have advanced training or expertise in the financial needs of older consumers. These designations can confuse older consumers, who are already at risk for deception and fraud.”

“With such a bewildering array of titles and acronyms, it is no wonder that older Americans are confused and misled by these titles,” said CFPB Director Richard Cordray.

“Today’s report underscores the need for consistent high-level standards of training and conduct for those advisers who want to acquire a bona fide senior designation.”

Full Article and Source:
Senior Specialists Often Swindlers

See Also:
Read "Senior Designations for Financial Advisors"

Financial Adviser Pleads No Contest to Bilking Elderly Clients

A financial advisor pleaded no contest this morning to charges that he stole more than $38,000 from two elderly former clients.
 

The state Department of Commerce and Consumer Affairs filed a criminal complaint in state Circuit Court last week charging Scott Akashi, 31, with 11 counts of second-degree theft. 

Akashi waived indictment and pleaded no contest to all 11 counts.
 

The state says Akashi stole $38,773 in January, February and March last year from the former clients who were 88 and 90 years old. He promised them higher returns on their investments and even drove them to the bank to get their money. Instead of investing the money, the state says Akashi pocketed it for his own use.

 

The state said it got word of what was going on after a relative of one of the victims noticed that her grandmother had a new checking account from which she wrote checks to Akashi.

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Financial Adviser Pleads No Contest to Bilking Elderly Clients

Hollywood Couple Found Guilty of Elderly Exploitation

A former Hollywood stockbroker and her financial-planner husband were convicted on Tuesday of tricking a 94-year-old woman with dementia into signing over her $10 million estate, according to the Broward State Attorney's Office.

Cynthia Franke, 51, and Tyrone Javellana, 47, were found guilty of financial exploitation of an elderly person after two hours of jury deliberation, prosecutors said.

They were accused of befriending Josephine Troisi and her since-deceased sister Mary Teris and then becoming their financial advisors.

Experts testified Troisi lacked the capacity to make sound decisions when Franke took her to an attorney to change her will and her trust in 2009.

Troisi's son uncovered the exploitation and investigators found several transfers of between $400 and $32,000 from the sisters to Franke and Javellana, police said.

Franke and Javellana face up to 30 years in prison for the first-degree felony conviction. Their sentencing is scheduled for April 19. Javellana also faces another charge of exploiting Teris, prosecutors said.

Source:
Hollywood Couple Found Guilty of Elderly Exploitation

PROTECT YOUR MONEY - CHECK OUT BROKERS AND INVESTMENT ADVISERS

Federal or state securities laws require brokers, investment advisers, and their firms to be licensed or registered, and to make important information public. But it's up to you to find that information and use it to protect your investment dollars. The good news is that this information is easy to get, and one phone call or web search may save you from sending your money to a con artist, an unscrupulous financial professional, or a disreputable firm.

The S.E.C. maintains a web page which is very informative: 
Protect Your Money - Check Out Brokers and Investment Advisers