Before we can stress the importance of raising any kind of awareness where elderly financial exploitation is concerned, we must first enlighten those not familiar with what is meant by the words "financial elder abuse". After that, we can talk about heightening awareness regarding the topic. We’ll then offer assistance to those who feel they may have suffered from this type of exploitation or have a loved one who may be a victim.
Sadly, some form of elder abuse (in people 60 years of age and older) has been experienced in 1 of 10 Americans. Every year, it is estimated that approximately 5 million elderly individuals are abused. Unfortunately, authorities are only alerted to about one in every 14 cases of elderly abuse. There are many forms of abuse, however. One, in particular, deals with finances.
What is Financial Elder Abuse?
Elder financial abuse occurs when an elderly person's investments, funds, real estate, or personal property is mismanaged or stolen for the perpetrator's personal benefit, primarily through coercion or fraudulent means. This often occurs without the consent of a disabled or senior adult, and possibly even without their knowledge. This results in the deprivation of financial resources belonging to the elderly individual, which are required for their personal needs.
Our elderly population is especially vulnerable to fraudulent investment strategies and predatory schemes. It is important that you know how to spot red flags and signs of elderly financial fraud to help seek justice for your loved one.
Common Investment Scams in Elderly Financial Abuse & Fraud
There are signs and symptoms that can alert you to the presence of financial elderly abuse. To help raise awareness, here's what to watch out for:
- Investment in gas and oil ventures
- Ponzi schemes (promises of no risk but a high return rate)
- Investment in promissory notes
- Charging unnecessarily high fees for equally unnecessary trades (that the investor will not benefit from)
- Investments that are truly unsuitable considering the risk tolerance of the investor, even though they offer a high rate of return
- Pump and dump schemes involving driving up the price of microcap or penny stocks using fraudulent statements, then selling at its peak
What To Do If Your Elderly Loved One Is Being Exploited
If an elderly loved one, or you yourself, have been a victim of financial elder abuse and have, therefore, suffered monetary losses, contact us. We represent clients in all aspects of commercial and securities litigation throughout the country. As an example, we represent broker misconduct victims as well as representing clients in a full range of other matters. On our website, you can review case material at your leisure.
We can help you seek compensation from the responsible parties. It is essential that in order to be assisted fully, you retain a capable securities litigation attorney. In state and federal litigation, as well as FINRA arbitration, we have decades of client representation experience at Weltz Law.
Feel free to contact us for more information on how to recover losses for you or on behalf of your elderly loved one.