Financial exploitation of seniors is a pressing issue affecting millions of seniors each year, leading to significant financial losses and emotional distress. This guide aims to deepen your understanding of financial exploitation of seniors, outline the steps involved in proving such abuse, and offer guidance on reporting and prevention.
By exploring the intricacies of this issue from the lenses of industry veterans like David Meyer and Courtney Werning, we can better protect our vulnerable elderly population and ensure justice for victims.
Understanding Senior Financial Exploitation
Common Forms of Senior Financial Exploitation
Financial exploitation of seniors encompasses various exploitative behaviors targeting older adults. These include fraud, unauthorized trading, unsuitable recommendations, misrepresentation, and excessive trading (churning). Trusted financial advisors may exploit their positions to make trades that are detrimental to their clients but beneficial to their pocketbooks, leading victims and their families to ask, “How do you prove elder financial abuse and what are my next steps if I do?” and we’re here to explain how you can protect yourself.
Impact of Financial Abuse on Seniors
The consequences of financial exploitation of seniors extend far beyond monetary losses. Victims often experience severe psychological distress, including depression, anxiety, and a diminished quality of life. An elder who falls victim to a fraudulent investment scheme may not only lose their life savings but also suffer intense feelings of shame, isolation, and fear for their impending security. The impact can be long-lasting, affecting the victim’s ability to trust others and maintain independence.
David Meyer, an experienced investment fraud attorney with experience in elderly financial abuse, wrote in his book The Investor Protector about Gretta, an elderly victim of investment fraud. In his anecdote, he explains that after the death of her husband, Gretta was financially frugal and trusted the broker that her husband had hired to manage their savings of $1 million.
Unfortunately, her broker took advantage of her vulnerability and loneliness, and befriended her by offering help with groceries and yard work. He would stop by to make sure Gretta had everything she needed, and during these visits he tricked her into signing blank checks that he used to steal $500,000.
Gretta was embarrassed and blamed herself for trusting the broker, and even asked her lawyer to inform her children about the situation because she felt too ashamed. Gretta’s experience demonstrates the emotional and psychological impact of investment fraud on victims, especially the elderly, who may already be struggling with feelings of isolation and vulnerability. The impact of such an experience can be long-lasting, affecting the victim’s ability to trust others and maintain their independence.
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Steps to Proving Senior Financial Exploitation in the United States
Legal Requirements for Proving Abuse
Proving financial exploitation of seniors involves demonstrating that an individual has wrongfully taken or misused an older person’s money or property, often with intent to deceive or exploit. Building a strong case requires gathering concrete evidence of unauthorized transactions, changes in legal documents, or patterns of financial manipulation. Proving financial abuse in court involves meticulous preparation and a clear presentation of evidence.
If a financial advisor persuades an elderly client to invest in high-risk ventures unsuitable for their financial goals, and the advisor benefits financially, it may constitute financial exploitation of seniors. Additionally, state laws differ—for instance, California has specific statutes under the Elder Abuse and Dependent Adult Civil Protection Act that address financial abuse.
Understanding the specific legal context in your state is crucial to effectively pursue a case. If you truly want to understand how to prove elder financial abuse, contact a securities fraud attorney to discuss your situation and how they can assist you. More information on this to come later in this blog.
Gathering Evidence and Documentation
Collecting comprehensive evidence is vital in proving financial exploitation of seniors. Legal professionals can assist in meticulously examining financial transactions, obtaining bank statements, and securing copies of legal documents such as power of attorney agreements or wills.
If there is suspected abuse by a financial advisor, our team can help uncover records of unauthorized purchases, misrepresentation, or any other records that would implicate the defending party if the records exist.
Medical records can also be valuable, especially if they indicate cognitive decline that coincides with financial irregularities. Creating a clear timeline of events is crucial, noting any sudden changes in the older adult’s financial situation or relationships that might suggest exploitation.
Role of Attorneys in Senior Financial Exploitation Cases
Attorneys experienced in financial law for elders play a significant role in handling the legal landscape of financial abuse cases, utilizing resources such as the Elder Justice Initiative (EJI). They bring knowledge in gathering and presenting evidence, interpreting relevant laws, and advocating for the victim’s rights. For instance, an attorney might help a family prove excessive trading by analyzing financial records and demonstrating how the financial advisor’s actions violated their fiduciary duty.
Often, this happens behind the scenes through the Financial Industry Regulatory Authority (FINRA) in arbitration, rather than a standard courtroom. It is imperative that you find an attorney who is experienced in FINRA arbitration, as this is a different process that involves its own intricacies during the process.
Challenges and Solutions in Reporting Senior Financial Exploitation
Identifying and Overcoming Obstacles
Reporting financial exploitation of seniors often faces significant hurdles. Victims may feel reluctant to report due to shame, fear of retaliation, or a desire to protect financial advisors that act as a friend. They may also feel ashamed for trusting them and blame themselves for the situation, similar to Gretta in the anecdote we mentioned above. In such situations, addressing the abuse becomes a complex emotional and legal challenge. By highlighting such conflicts, we help readers empathize with victims and recognize why they might endure abuse without seeking help.
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Closing Thoughts
If you are trying to understand how to prove elder financial abuse, you will find yourself facing a task that will not likely be done with the help of a qualified securities attorney. Proving financial exploitation of seniors requires a comprehensive approach that combines legal knowledge, thorough evidence gathering, and an understanding of the intricate dynamics involved in elder exploitation. Through leveraging the knowledge of legal professionals and working together to find the appropriate documentation, strong cases can be built to protect our elderly population.
As our society continues to age, ensuring justice for victims of financial exploitation of seniors is increasingly necessary in protecting the dignity and financial security of our senior citizens. There are legal safeguards put in place, such as the responsibility of a brokerage to spot elder abuse before it becomes a critical issue, and you should work with a securities fraud attorney such as those at our firm to take advantage of those systems.
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Frequently Asked Questions
How do you prove power of attorney abuse?
Proving power of attorney abuse often requires legal knowledge in gathering and presenting evidence. Our team specializes in uncovering misuse of authority, analyzing financial records, and advocating for victims’ rights. We can help manage the intricacies of the legal system to build a strong case against those who have breached their fiduciary duties.
How to prove financial abuse in court?
Proving financial abuse in court involves presenting compelling evidence and legal arguments. Working with an experienced attorney can help ensure that all necessary evidence is properly collected and presented to build a strong case. This process also often involves an arbitration outside of the courtroom, which involves its own intricacies.
How to prove financial exploitation of seniors after death?
Figuring out how to prove elder financial abuse after their death is possible with professional legal assistance. Our attorneys focus on gathering posthumous evidence such as financial records, medical documents, and witness accounts to build a compelling case of abuse.
How to prove someone stole from you?
If you believe someone has stolen from you or a loved one, it’s vital to consult with legal professionals who can assist in documenting the theft and gathering necessary evidence. Our team can help manage the legal process from start to finish, whether that be understanding your rights or proving your case through the legal process. Make sure you have a great securities attorney at your side to help you along the way from step one to the potential payout.
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