Authorities charge that Salem County investment adviser Jeffrey Southard systematically bilked elderly clients out of $1.8 million in a Ponzi scheme that unraveled when securities regulators began looking into his business. Southard pleaded guilty to preying on elderly clients, who turned over their money to him on the promise of guaranteed annual returns of 6 percent to 11 percent.
Instead of enriching his clients, Southard used much of the money to pay his mortgage, private-school tuition, car payments, and other personal expenses.
The story rated a few paragraphs in the newspaper, but the fact is that schemes by investment advisers and other professionals that target elderly clients are proliferating. The reason is, as Willie Sutton put it when asked why he robbed banks, that is where the money is.
People 50 and over are sitting on a vast pile of wealth - 70 percent of the net worth of U.S. households, according to MetLife, the insurance giant. Those assets have been accumulating over several decades of unprecedented economic growth in the United States.
Some elderly are especially vulnerable because they are physically weakened, emotionally vulnerable, or impaired in other ways that might affect their judgment.
That exposure, along with the potential changes in inheritance rules and the sheer magnitude of the over-60 demographic, is helping to fuel a sharp uptick in business for lawyers who are experts in wills and estates and overall wealth management.
Full Article and Source:
Law Review: As scams target elderly, a legal niche also booms
Instead of enriching his clients, Southard used much of the money to pay his mortgage, private-school tuition, car payments, and other personal expenses.
The story rated a few paragraphs in the newspaper, but the fact is that schemes by investment advisers and other professionals that target elderly clients are proliferating. The reason is, as Willie Sutton put it when asked why he robbed banks, that is where the money is.
People 50 and over are sitting on a vast pile of wealth - 70 percent of the net worth of U.S. households, according to MetLife, the insurance giant. Those assets have been accumulating over several decades of unprecedented economic growth in the United States.
Some elderly are especially vulnerable because they are physically weakened, emotionally vulnerable, or impaired in other ways that might affect their judgment.
That exposure, along with the potential changes in inheritance rules and the sheer magnitude of the over-60 demographic, is helping to fuel a sharp uptick in business for lawyers who are experts in wills and estates and overall wealth management.
Full Article and Source:
Law Review: As scams target elderly, a legal niche also booms
Schemes to take advantage of the elderly will indeed boom in this economy -- the pros (guardians, attorneys) will up their game as well.
ReplyDeleteGood thing there's NASGA!
Indeed, the current elderly and vulnerable have amassed the greatest volume of wealth - and that is why they are targeted with predatory guardianships.
ReplyDeleteAs the Boomers age, they will become even more attractive prey.
The opportunities for lawyers to benefit from scams is growing too.
ReplyDeleteBut lawyers are part of that scam!
There should be NO trust toward a fiduciary, attorney, banker, etc. where funds are concerned. An elder should be counseled with his loved ones and heirs or they may lose out. We learned the hard way.
ReplyDeleterope therapy
ReplyDeleteIt's sad that so many people have no morals whatsoever.
ReplyDelete