Elder Financial Exploitation Lawyer | Investment Fraud & Senior Abuse Claims
Elder financial exploitation is one of the fastest-growing forms of investment fraud, often targeting vulnerable investors through deception, coercion, or abuse of trust.
Recovering Investment Losses from Financial Abuse of Seniors
If you or a loved one has suffered financial losses due to exploitation, the securities fraud attorneys at The White Law Group may be able to help you pursue recovery through FINRA arbitration.
What Is Elder Financial Exploitation?
Elder financial exploitation refers to the unauthorized or improper use of an older adult’s money, assets, or property for another person’s benefit. This type of abuse can be committed by:
- Financial advisors or brokers
- Family members or caregivers
- Friends or acquaintances
- Scammers or third parties
Common forms of elder financial abuse include:
- Unauthorized trading or withdrawals
- Investment fraud and unsuitable recommendations
- Abuse of power of attorney or trusted contact status
- Ponzi schemes and other fraudulent investments
• Theft, scams, and wire fraud
Why Elder Financial Exploitation Is Often Underreported
Elder financial abuse is widely considered underreported, making its true scope difficult to measure. Many victims:
- Feel embarrassed or ashamed
- Depend on the abuser for care or assistance
- Are unaware they have been exploited
- Experience cognitive decline or confusion
Because of this, financial losses can continue for extended periods before being detected.
The Role of Financial Advisors in Preventing Elder Financial Abuse
Brokerage firms and financial advisors play a critical role in identifying and preventing elder financial exploitation. With access to client accounts and transaction activity, advisors are often in a position to detect suspicious behavior early.
However, failure to act on warning signs—or worse, active participation in misconduct—can expose firms to liability.
Key FINRA Rules Designed to Protect Senior Investors
Financial Industry Regulatory Authority (FINRA) rules require brokerage firms to take proactive and reactive steps to protect vulnerable investors.
FINRA Rule 2165 – Financial Exploitation of Specified Adults
This rule allows firms to:
- Place temporary holds on suspicious disbursements or transactions
- Investigate potential exploitation
- Notify trusted contacts when appropriate
- “Specified adults” generally include:
- Individuals age 65 or older
- Adults with mental or physical impairments
FINRA Rule 4512 – Customer Account Information
This rule requires firms to:
- Maintain accurate customer account records
- Make reasonable efforts to obtain a trusted contact person
- Use that contact to help protect the client’s financial interests
Together, these rules are designed to detect, prevent, and respond to elder financial exploitation.
Warning Signs of Elder Financial Exploitation
Financial professionals—and family members—should watch for red flags such as:
- Unusual or unexplained withdrawals
- Sudden changes in investment strategy or risk tolerance
- Large wire transfers or frequent ATM withdrawals
- New individuals gaining access to accounts
- Changes in beneficiaries or account ownership
- Confusion or lack of awareness about financial decisions
What to Do If You Suspect Elder Financial Abuse
If you believe you or a loved one has been a victim of elder financial exploitation:
- Act quickly to prevent further losses
- Gather account statements and transaction records
- Report the activity to the brokerage firm
- Consider filing a claim through FINRA arbitration
Many disputes involving brokerage firms must be resolved through FINRA arbitration, a process that allows investors to recover losses caused by misconduct.
How The White Law Group Can Help
The White Law Group represents investors nationwide in claims against brokerage firms and financial advisors. Our attorneys have extensive experience handling cases involving:
- Elder financial exploitation
- Unauthorized trading
- Unsuitable investments
- Broker negligence and failure to supervise
We guide clients through every stage of the FINRA arbitration process, including:
- Case evaluation and claim filing
- Evidence gathering and discovery
- Hearings and representation before arbitrators
Free Consultation with a Securities Attorney
If you or a loved one has suffered investment losses due to elder financial exploitation, you may have legal options.
Contact The White Law Group today for a free, confidential consultation to discuss your case.
Frequently Asked Questions
What is a “specified adult” under FINRA Rule 2165?
A specified adult includes individuals age 65 or older, or those age 18 and older with a mental or physical impairment that limits their ability to protect their financial interests.
Can a brokerage firm freeze an account for suspected exploitation?
Yes. Under FINRA Rule 2165, firms can place a temporary hold on transactions or disbursements if they reasonably believe exploitation is occurring.
How do I report suspected elder financial abuse?
You can report concerns to the financial institution, state adult protective services, or consult a securities fraud attorney to evaluate potential legal claims.