New York Advisor Clarice Saw Charged with Defrauding Elderly Client of $2.4 Million
According to reports this week, the SEC charged Clarice Saw (Chin Saw), a dual registered broker/investment advisor currently affiliated with Coastal Equities in New York, with allegedly defrauding a customer of approximately $2.4 million.
The SEC’s complaint alleges that between December 2021 and March 2022, while Saw was associated with another registered broker-dealer, she reportedly engaged in a fraudulent scheme and stole close to $2.4 million from an elderly brokerage customer. The complaint also alleges that Saw liquidated all the customer’s securities holdings without the customer’s consent, and then transferred all the investment proceeds to her own personal bank and brokerage accounts. The SEC further alleges that Saw purportedly used some of the misappropriated funds to pay for her personal expenses, including $100,000 in car and mortgage payments and thousands of dollars of cash withdrawals, and that Saw used additional misappropriated funds to purchase securities in her own personal brokerage account.
The complaint indicated that the customer was allegedly a retired janitor whose deceased wife had an insurance policy valued at $1.8 million at the time he opened the account with Saw. He was reportedly an immigrant to the U.S. who did not speak, read or understand English, and had no living immediate family members, according to the complaint.
Fraudulent Scheme
The SEC alleged that Saw took advantage of the customer as she has the same ethnic background as the customer and speaks his native language. Saw also reportedly became involved in certain other aspects of the customer’s life, including accompanying him to doctors’ appointments, according to the complaint.
Saw purportedly then convinced the customer to execute a healthcare proxy that named her as his healthcare agent. Instead, the document Saw gave him to sign was a power of attorney designating Saw as the customer’s legal representative, according to the allegations. The document was reportedly written in English.
Without the customer’s knowledge, Saw then purportedly made arrangements to liquidate the accounts. ‘Due to a change in [the Customer’s] health, he decided to fully liquidate all his positions in this account. He wants all his funds to be in cash in his bank account to be ready to be donated away/distributed,’ stated an internal memo allegedly posted by Saw. Saw allegedly sold the customers’ holdings in order to transfer the money to her own bank accounts.
The SEC seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.
Elder Financial Exploitation
Elder financial exploitation has become a serious problem over the past few years. In 2011, Investment News reported older Americans were being financially abused by family members, strangers and businesses to the tune of $2.9 billion a year. In 2019, the numbers ranged from $3 billion to $37 billion per year. Most likely those numbers are vastly under reported. According to National Adult Protective Services Association (NAPSA), only 1 in 44 cases of financial abuse ever comes to light. Seniors may be especially vulnerable to financial exploitation if they are cognitively impaired or simply confused by complex investment products. Advances in technology can make things even more complicated for seniors. Further, studies have reportedly shown that people tend to make poorer financial decisions as they get older. They also are often lonely and more willing to talk to strangers.
FINRA BrokerCheck – Clarice Saw
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA. It’s also a great way to review their employment history, licensing status, and any regulatory actions or complaints filed against them.
According to her FINRA broker report, Clarice Saw has been affiliated with thirteen firms during her twenty-six years in the securities industry, including the following:
10/02/2021 – 06/30/2022, CETERA INVESTMENT ADVISERS LLC (CRD#:105644), FLUSHING, NY,
B, 09/30/2021 – 06/30/2022, CETERA INVESTMENT SERVICES LLC (CRD#:15340), FLUSHING, NY
IA, 11/09/2016 – 09/28/2021, CITIGROUP GLOBAL MARKETS INC. (CRD#:7059), NEW YORK, NY
B, 11/07/2016 – 09/28/2021, CITIGROUP GLOBAL MARKETS INC. (CRD#:7059), NEW YORK, NY
IA, 12/03/2012 – 11/16/2016, LPL FINANCIAL LLC (CRD#:6413), ARDSLEY, NY
B, 11/30/2012 – 11/16/2016, LPL FINANCIAL LLC (CRD#:6413), ARDSLEY, NY
Clarice Saw’s BrokerCheck record indicates three customer complaints have been filed against her. Allegations include misrepresentation, among others.
Recovery of Investment Losses
The White Law Group is investigating potential securities claims involving Clarice Saw and the liability his employers may have for failure to supervise her. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states including New York. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you are concerned about your investments with Clarice Saw, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit WhiteSecuritiesLaw.com.
Tags: broker investigation, Clarice Saw, SEC charges Last modified: July 31, 2023
