New Jersey Advisor John Boston Charged with Fraud Scheme 

John Boston Allegedly Embezzled from 90-Year-Old Woman 

According to numerous reports, a grand jury has indicted New Jersey financial advisor John Boston for embezzling more than $75,000 from a 90-year-old woman and using the funds for personal expenses. 

John Boston, aged 47, of Verona, NJ is accused of deceiving the elderly woman by falsely representing himself as her financial advisor. Instead, he allegedly siphoned money from her accounts through a series of unauthorized bank transfers, according to the Attorney General’s Office on October 11, 2023. 

Boston reportedly faces two second-degree charges, including theft and theft by failure to make the required disposition, following an investigation conducted by the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit. 

Attorney General Matthew Platkin expressed concern over elder fraud and the frequency of senior citizens falling victim to such fraudulent activities under the guise of professional services, emphasizing the severe impact on victims and their families. He stated, “No one should live in fear of losing their life’s savings or their home due to the breach of duty and trust by those claiming to be professionals.” 

According to authorities, in 2017, Boston allegedly persuaded the victim to sign a contract authorizing him to manage her finances. However, after the contract was signed, Boston purportedly failed to inform his employer of this arrangement and did not register her as a client, as mandated by federal law. 

Subsequently, on June 27, 2017, Boston convinced the 90-year-old victim to grant him power of attorney. Once he had gained complete control over her finances, he withdrew more than $75,000 from her bank account with her debit card, as reported by the OAG. See: Broker Embezzlement.

Boston reportedly used the stolen funds to settle his personal bills and purchase items for his family, while neglecting the woman’s care and defaulting on her bills, according to officials. 

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 the 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.   

Failure to Supervise – Advisor John Boston

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules. FINRA Rule 3110 (Failure to Supervise) requires a firm to establish and maintain a system to supervise the activities of its associated persons that is reasonably designed to achieve compliance with the applicable securities laws and regulations and FINRA rules.   

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. 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 brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent. 

National Securities Attorneys 

If you suffered losses investing with John Boston, the securities attorneys at the White Law Group may be able to help you to recover your investment losses. Please call 888-637-5510 for a free consultation. 

This information is all publicly available and provided to you by The White Law Group.  

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.  

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.