I think my brother stole $40K from my mom, who passed away in 2022. I think her financial adviser helped him. But how do I prove the adviser ‘was in cahoots’ with my brother?

By Alisa Wolfson 

Question: “My mom passed away in 2022, and I believe the financial adviser helped my brother steal my mother’s money. In addition to being the only family member who knew the adviser, my brother was my mom’s power of attorney at one point. After my mom revoked it, my aunt promised to be unbiased but ended up being manipulated by my brother. The last amount he stole from her was $40K, when he told my aunt he would kill himself if he didn’t have the funds.

I was my mom’s sole caregiver and the only medical document stating she couldn’t make any decisions was written two years before she passed away at which point I had become her power of attorney. I wrote to the adviser asking for proof of where my mom’s money was but never got a response. My hands were full taking care of my mother’s basic needs and I promised her I would try to get the information about her money.

The financial adviser said she was told not to speak to me, which I believe came from my brother wanting to get away with stealing. How should I go about looking into this adviser to see if they have other claims filed against them? This adviser should not be handling anyone’s money but I don’t know how to prove that she was in cahoots with my brother. Who should I work with going forward to handle what’s left of my mother’s money?”

Answer: This is an extremely fraught situation, and pros say you may want to engage an attorney — and in the future may want to get a financial planner like a CFP who must act as a fiduciary. (You can use this free tool from our partner SmartAsset to match you to fiduciary advisers, as well as sites like CFP Board and NAPFA.)

But before we get into all of that, your top priority right now should be to preserve records and evidence, says certified financial planner and certified public accountant Robert Persichitte, who used to work as a fraud examiner and probate auditor. “Document everything that happens in a single file or journal. Every interaction, especially phone calls and in-person interactions need to have a time, date, location, who attended and what was discussed. You should include as much detail as possible and follow up to get a confirmation in writing,” says Persichitte. Even though this happened a few years ago, it would behoove you to go back and find emails, text messages and any other evidence of communication or correspondence.

Unfortunately, it sounds like you can’t access all the information you need right now — and usually, the first step to establish your right to access the information is by providing a copy of the power of attorney and whatever else may be required by the firm. “However, since your mom has passed and the power of attorney is no longer valid, the named executor, personal representative or attorney who handled your mom’s estate would need to request the past financial statements to review for any suspicious activity,” says Michael E. DeMassa, a certified financial planner at Forza Wealth Management.

Financial advisers have a compliance supervisor. If your adviser isn’t returning calls or is unavailable, you should call the main office line and ask to speak with the adviser’s compliance supervisor, says DeMassa. “Be aware that because of privacy policies around client confidentiality, account information can only be given to authorized names associated with the account,” says DeMassa. 

Go ahead and do your homework on this adviser too. “You should check out any financial professionals on FINRA’s BrokerCheck site, which includes disclosures and background information [in addition to] common complaints and issues,” says Persichitte. You can also research the adviser and the firm by consulting the SEC’s Investment Advisor Public DIsclosure site which contains information about credentials, employment history and disclosures concerning disciplinary events, says Gene McGovern, certified financial planner at McGovern Financial Advisors.

Without having all the facts regarding your case, it’s unclear what type of financial adviser your mother had, whether her estate has gone through probate or who currently owns her accounts. “All financial advisers have certain duties they owe to clients. The specific duties depend on whether the person is a registered representative of a broker-dealer or an investment adviser,” says McGovern.

Registered investment advisers have a fiduciary duty to their clients that applies to the entire adviser-client relationship. “Having a fiduciary duty means exercising a duty of care, which is providing advice that is in the client’s best interest and it also means having a duty of loyalty, which obligates the adviser to put the client’s interests ahead of his or her own,” says McGovern.

On the other hand, McGovern says broker-dealers are governed by a lesser suitability standard, as amended and updated by the SEC’s Regulation Best Interest, which requires broker-dealers to act in the best interest of retail customers when making recommendations about securities transactions or investment strategies.

You’ll also want to consider engaging an attorney. “Elder law attorneys specialize in issues affecting seniors, including financial exploitation. They can help you understand your rights and potential legal recourse,” says Allison Donaldson, certified financial planner at HTG Investment Advisors. What’s more, working with a lawyer can help you source any documents you’re legally entitled to. “Power of attorney documents expire at death so you may need to open a probate estate. Both the abuse of a power of attorney and information about the estate fall under the umbrella of probate issues,” says Persichitte.

If you do uncover fraud, notifying law enforcement, adult protective services, FINRA or the SEC and the Attorney General’s office will help trigger an elder financial abuse case. You can also alert the fraud department of your mom’s bank or brokerage company in addition to engaging with a forensic accountant if you need help recovering money and reconstructing a paper trail.

In terms of choosing someone to work with in handling your mother’s money going forward, consider working with a CFP. “These planners have passed a rigorous certification examination, they have a fiduciary obligation to their clients and they must abide by a strict code of ethics and standards of conduct,” says McGovern. You can use this free tool from our partner SmartAsset to match you to fiduciary advisers, as well as sites like CFP Board and NAPFA. 

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I think my brother stole $40K from my mom, who passed away in 2022. I think her financial adviser helped him. But how do I prove the adviser ‘was in cahoots’ with my brother?