FINRA -- Investment Fraud and The Elderly Law Office of Dickenson, Murphy, Rex & Sloan Attorneys Boca Raton Florida

FINRA -- Investment Fraud and The Elderly

FINRA Warning Brokers About Use of 'Senior" Designations

November 16, 2011

The Financial Industry Regulatory Authority (FINRA) is warning??brokerage firms??about the use of titles that may imply special expertise in working with elderly investors.

In a?? FINRA regulatory notice (??http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p125092.pdf )??issued in early November 2011, FINRA reminded brokerage firms of their obligations regarding misleading certifications and designations that may cause investor/customers to believe that person has special training or capabilities in advising senior and elderly investors.

One of the practices used by brokerage firms to attract clients is the 'free meal seminar' which has been used to attract people, mostly elderly, to seminars where they are often subjected to sales pitches for unsuitlable and sometimes fraudulent investment products.

Investment Fraud Against Elderly "Rampant"
Posted by: Robert Rex
December 27, 2011

Wall Street Journal reporter Kelly Greene's recent article "Boomers Wearing Bullseyes" highlights the fact that financial abuse of those over 50 years old is on the rise. The number of fraud actions involving this group doubled from 2009 until 2010 according to NASAA (North American Securities Administrators Association). As you may have guessed, the number of regulators there are to monitor this abuse did not change substantially.

One of the cases highlighted in this WJS article involves serial ponzi schemer James D. Risher of Sanibel, FL who was recently sentenced to nearly 20 years for pleading guilty to fraud charges that resulted in the loss of nearly $20 million dollars from about 100 central Florida retirees. Robert H. Rex, Esq is currently representing this group that is attempting to recover the lost nest eggs from several brokerage firms and financial institutions. See earlier blog posts for details regarding James Risher.

If you are concerned about your broker or the way your brokerage account is being handled, please do not hestiate to contact Robert H. Rex, Esq. at 561 391 1900.

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