California Elder Law Attorney Blog

Mention "elder abuse" and most lawmakers conjure up images of the fleecing of Brooke Astor's estate or an elderly relative kept in squalid conditions. Cases like these make for excellent tabloid fodder. In fact, recently the New York Post prominently featured a story about Cher Thompson, a young woman who allegedly bilked a deaf octogenarian with dementia out of his life savings.

What gets far less attention is perhaps the most prevalent form of elder abuse--the sort perpetrated by stockbrokers. The Financial Industry Regulatory Authority (FINRA), Wall Street's governing and enforcement body, defines financial elder abuse as the "misuse of an older adult's money or belongings by a relative or person in a position of trust."

A clear-cut example recently made headlines in a number of financial trade publications. Stockbrokers Thomas B. Cooper and Peter L. Boorn at Beverly Hills-based StockCross Financial Services Inc. allegedly bilked 95-year-old David Wolfson of nearly all his assets and put his house at risk after recommending unsuitable and risky investments. The brokers dropped Wolfson as a client once they drained him of his cash. An arbitration panel awarded the elderly man triple damages, totaling $1.6 million. It was an unprecedented amount that underscored the severity of the abuse.

Exploiting the elderly is actually quite common on Wall Street. The temptation to commission-earning brokers is obvious. There isn't a lot of money to be made managing the accounts of risk-averse investors who are looking to clip coupons and live off interest income from municipal bond funds, Treasuries or other safe investments. Some Wall Street firms just can't but regard the elderly as ripe for the fleecing.

Another recent example was the case of Sergio M. Del Toro, who has been banned from the securities industry for defrauding a 90-year-old Minnesota nursing home resident of $511,000. Mr. Del Toro recommended that the elderly man put his entire net worth into the stock of a firm called 3rd Dimension, for which there was no market or publicly quoted pricing. Mr. Del Toro's alleged motivation: a 15% commission, equal to about $76,600.

Continue reading "Financial Elder Abuse Exploitation Quite Common on Wall Street" »

An estimated one in 10 adults older than 60 are abused every year, according to the National Institute of Justice. The grim truth is most of the perpetrators are family or friends of the victim.

"It's usually someone who is taking advantage of the trust and also taking advantage of the vulnerabilities," says California Elder Law Attorney Steven C. Peck "Preying on someone's financial situation."

While statistics aren't always available at the local level, that doesn't mean it's not an issue.

"The one thing you don't want to do is put your head in the sand and pretend this thing doesn't exist, because this is happening all across the country," Peck Indicates.

Many older adults are afraid to report abuse, They might be reliant on the perpetrator for their independence, or they might just not know who to tell.

"We definitely need to stop this," reflects Peck "We're hoping we can connect with seniors to tell them there are resources here for them to reach out and stop this type of exploitation.

Even when elder abuse cases are reported, they're often difficult to investigate. For example, if children are charged with taking care of their parent, it's common to share a bank account so the children can eventually make funeral arrangements. Once that happens, the temptation grows to start taking money out for personal use, maybe even thinking of it as an early inheritance, indicates California Financial Elder Abuse Lawyer Steven C. Peck.

"It is difficult because you have to sort through those trust issues and get to the facts," Peck says. "You have to prove that these people are being taken advantage of."

The investigations can be time consuming, even when advocates help the victim. "Like most of us, the elderly don't keep the best records, so pouring through records is really very difficult to do,"

Continue reading "Family or Friends the Most Likely Perpetrators of Elder Abuse" »

Mention the phrase "elder abuse" and most lawmakers conjure up images of the fleecing of Brook Aster's estate or an elderly relative kept in squalid conditions. Cases like these usually make for excellent tabloid fodder. In fact, recently the New York Post prominently featured a story about Cher Thompson, a young woman who allegedly bilked a near deaf 90-year-old man with dementia of his life savings.
But what gets lost is perhaps the most prevalent form of elder abuse-financial elder abuse by stockbrokers. FINRA, Wall Street's governing and enforcement body, defines financial elder abuse as the "misuse of an older adult's money or belongings by a relative or person in a position of trust."

A clear cut example recently made headlines in a number of financial trade publications. Two stockbrokers named Thomas B. Cooper and Peter L. Boorn at Beverly Hills-based StockCross Financial Services Inc. allegedly bilked a 95-year-old investor named David Wolfson of nearly all his assets and put his house at risk after recommending unsuitable and risky investments. The brokers dropped Mr. Wolfson as a client once they drained him of his cash. An arbitration panel awarded Mr. Wolfson triple damages in the amount of $1.6 million, an unprecedented amount, underscoring the severity of the abuse.

Exploiting the elderly is actually quite common on Wall Street. There isn't a lot of money to be made managing the accounts of risk-averse investors who are looking to clip coupons and live off the interest income from their investments. Some Wall Street firms just can't help themselves and see the elderly as ripe for the picking.

Another recent example was the case of Sergio M. Del Toro. Mr. Del Toro is now banned from the securities industry for defrauding a 90-year-old Minnesota man who lived in a nursing home of $511,000. Mr. Del Toro recommended that the elderly man put his entire net worth into the company stock of a firm called 3rd Dimension, for which there was no market or publicly quotable pricing. Mr. Del Toro's alleged motiviation was a classic one: he received a 15 percent commission, or about $76,650.

Elder abuse can also take the form of sales of securities that on the surface seem reasonable but in fact are inappropriate. Although FINRA specifically warned brokerages in 2007 against taking advantage of elderly investors, it didn't stop Wall Street in 2008 from targeting the elderly with investments that preyed on their need for liquidity. The most common of these investments were the preferred shares of major financial institutions that offered attractive dividends.

Continue reading "Sales of Securities and Elder Abuse" »

It is a sad fact of life that elders who have worked and saved their entire lives become vulnerable in their later years. While elder abuse may be physical, it is more broadly defined to include financial abuse. The laws provide remedies and the courts have become more sensitive to this issue.
1) Is the person an "elder" or "dependent adult?"
An elder is defined as anyone 65 or older. A dependent adult may be younger, and is one that due to physical or mental condition must depend on another for care.

2) Has there been "financial abuse?"
Everyone has the right and capacity to dispose of their property as foolishly as they choose. If they have been subjected to unusual pressure, duress, coercion, trickery, artifice or device to part with their property to the benefit of some other person, there may be elements of financial abuse.

3) Is the object of the elder's bounty a fiduciary or enjoy a confidential relationship?
When a person has a fiduciary or confidential relationship with the elder and has received property or value from the elder, there may be a presumption of fraud without proving actual fraud or any lack of competency of the elder.

4) Does the elder suffer from any medical or mental condition?
If at the relevant time the elder is suffering from mental or medical conditions which materially affect his or her ability to resist the importuning of others, resulting in the impoverishment of the elder and/or otherwise benefiting the recipient of the elder's largesse, grounds may be established for a case of elder abuse.

5) Does the elder require appointment of a conservator?
If the elder does not seem able to take action by himself or herself to stop the financial abuse and seek recovery directly against the recipient, then some person must apply to the probate court to be appointed conservator to seek recovery.

6) If the elder has passed away, appointment of an estate representative may be required.
Frequently elder abuse is not discovered until after the elder has died, in which event someone (usually a natural heir) must seek appointment as estate representative and sue the recipient for recovery of any property obtained as a result of elder abuse during the elder's lifetime.

7) Remedies include damages, attorney fees, injunctive relief.
The good news is that a successful case to recover property obtained by elder abuse may include damages (including punitive), attorney fees, and injunctive orders requiring the recipient to disgorge the ill-gained assets and their proceeds.

Continue reading "Financial Elder Abuse: Sone Very Important Factors To Consider" »

There seem to be more and more instances about how someone in a family or an individual in a trusted position, manipulates an elder with dementia and / or some kind of cognitive impairment, to sign a durable power of attorney, change the trust, etc.. when the manipulated person is no longer competent to know what they are signing. People do it to take control of money and believe that they can get away with it because the elder won't object and because it's expensive to try to stop the person who is the "agent" on the power of attorney.

Is there anything one can do if this has happened to your elder? Yes, there may be something you can do. First, if the elder has "cognitive impairment" or has been diagnosed with dementia, it is important to get a letter from the elder's physician verifying that he or she is not competent to handle his or her finances any longer. Without medical or psychological evaluation of the elder and evidence from one of these professionals, it is almost impossible to protect the elder from financial abuse.

One way around the problem is to seek the advice of an elder law attorney, who may be able to convince the court to order an evaluation, even if the "agent" objects to having the elder tested for competency by a doctor.

If an agent on a durable power of attorney has taken control of the elder's finances and is not using the elder's money for the elder's benefit, it may be time to get the authorities involved. Taking an elder's money and using it for any purpose other than to care for and protect the elder's health, safety and quality of life may be financial abuse. If so, it must be reported to the police, adult protective services in your area, or to a doctor, who will report the problem to the proper law enforcement entity. The letter reporting the evaluation of the elder's mental competency is a crucial part of reporting alleged elder abuse. Without it, law enforcement may not be able to tell who is being truthful and who is not.

Continue reading "Financial Elder Abuse: Manipulation of Those With Cognitive Impairment" »

The United States estimates that over 1.5 million senior citizens are abused, mistreated or victimized by family members, friends, caregivers or others they may come in contact with each year. Although those with physical or mental disabilities are more vulnerable, any elderly person is at potential risk.

From physical or emotional abuse to financial mismanagement or neglect, elder abuse comes in many different guises. The common result leaves the victim feeling worthless, alone or guilty.

Physical abuse (i.e., hitting, biting, pushing or other forced contact) can be considered the most extreme form of mistreatment. Elders who are victims of this kind of abusive behavior experience depression or sudden mood swings. Their physical appearance may be an indication of an abusive situation. An abused senior may have unexplained cuts, bruises, fractures or burn marks on his or her body. There are other forms of physical abuse. These are not so easily noticed. A caregiver might be over or under-medicating a senior, for example, or forcibly confining him or her to a single area indicates California Elder Law Lawyer Steven C. Peck.

One does not need to have physical contact with a senior in order to abuse them. Emotional, mental or psychological abuse occurs when the senior is ridiculed, threatened, humiliated or treated in a demeaning manner. Even the malicious destruction of an elder's belongings can be considered a form of emotional abuse says Los Angeles Edler Abuse Attorney Peck.

Although not as easily noticeable as physical abuse, emotional mistreatment can still be detected. The senior may appear upset, nervous or agitated. They may be hesitant or afraid to talk to others regarding the abuse they are experiencing.

One case comes to mind where a disadvantaged elder was constantly ridiculed, called names, and had her door pounded on constantly by a neighbor and the neighbor's children in a small four plex apartment building" recalls Steven C. Peck. "Although the elder was somewhat impaired, she understood how she was being treated."Eventually, the matter was settled for a substantial settlement for emotional abuse.

Financial abuse occurs when a caregiver, guardian or power of attorney steals, mismanages funds or sells personal property of an elder without his or her consent. Lying about the costs of certain needs of the elder is also considered a form of financial abuse.

The abused senior may request large sums of money to be given to the abuser. Other indications that someone is taking financial advantage of an elder may include a significant number of unpaid bills, money or items that are unaccounted for or abrupt changes in the elder's will, power of attorney and / or trust documents.

Neglect can be considered the most common form of abuse. When an abuser withholds food, medical support or any other care which a reasonable person would need, he or she is neglecting the senior.

Untreated bed sores, malnutrition, dehydration and unsanitary living conditions are only a few indications of neglect.

There are preventive measures that can be taken to avoid a potentially abusive situation. The elder should not be placed in the care of anyone who has a history of abuse. The elder should review his or her will, making sure any changes are truly what they want. Friends, family members and neighbors should visit the senior often to insure that abuse is not occurring. Most importantly, the elder should be reminded not to sign anything until someone else who he or she trusts has seen it states California Nursing Home and Abuse Attorney Steven C. Peck.

A person should be educated on signs and symptoms of abuse. If stress is realized early on, a potential abuser can be helped before any adverse effects occur. Talk with friends and family members and offer to help caregivers in order to prevent burnout before it is to late.

Continue reading "1.5 Million Elders Are Abused, Mistreated or Victimized Each year" »

Sometimes people just need to know it's not OK. Getting out the information about what may or may not be elder abuse is the mission of Steven Peck's California Elder Abuse law practice.. "We want seniors to be able to know what's going on and reach to help them," says Peck, the managing attorney.

As the Baby Boomer generation n those born between 1946 and 1964 reaches retirement age, the number of Americans over age 65 is expected to reach 71.5 million by 2030.

Elder citizens will suffer from abuse, neglect, abandonment or exploitation. Every case may not be a crime, but all states deem physical, sexual and financial abuse as criminal acts.

In most cases, people don't start out intending to take advantage of or abuse the older people they care for. Caring for frail elders is a difficult and stress-provoking task, especially when the older individual is mentally or physically impaired. More than two-thirds of the abusers are family members serving in a care giver role, according to information from the Web site www.elderabusecenter.org.

The potential for abuse increases when the elderly, especially those in poor health are not "in the right place for the care they need," says Peck. People don't want to lose their independence by giving up their homes, pets or the life style choices such as smoking or drinking that make caring for them more difficult. Self-neglect can be an issue for an elderly person who is incontinent or neglectful about eating or changing clothes.

The most prevalent form of exploitation of the elderly is financial says Steven Peck, a California Financial Abuse Attorney. Some examples include cashing an elderly person's checks without permission or forging his or her signature on property titles or transfers. Sometimes previously uninvolved relatives or a seemingly caring stranger appear.

Scammers from home repair salesmen to purveyors of reverse mortgages and Medicare Advantage prescription plans can be a big issue for the elderly. "Some abuse is opportunistic, like leaving the checkbook out, or skilled and conniving like the window salesman, seniors are very trusting, lonesome and want friends." says Peck.

MetLife discovered troubling evidence of financial exploitation of the elderly in a recent report conducted with the National Committee for the Prevention of Elder Abuse and the Center for Gerontology at Virginia Polytechnic Institute & State University.

While underreported, the annual financial loss by victims of elder financial abuse is estimated to be at least $2.6 billion, by best case estimates says California Financial Elder Abuse Attorney Steven C. Peck.

Underreported cases of financial exploitation, especially by someone close to a vulnerable senior, is of particular concern for state officials.

"I suspect the problem is far more serious than our numbers show, because the abuse, neglect or exploitation of elders is vastly underreported," Peck says.

The reason why is simple

"For one, if the abuse, neglect or exploitation is by a son or daughter, that vulnerable adult may not want to bring charges against their own family," Peck indicates.

Another concern centers on the potential end result of reporting the financial exploitation.

"If the only person involved is a family member, or other caregiver, and if they're taking advantage of a vulnerable adult, there's a certain amount of fear if the vulnerable adult reports that they'll have no other option but going into a nursing home," says California Elder Abuse Attorney Steven C. Peck.

Warning signs

Such fears explain why the National Center for Elder Abuse has posted warning signs of such abuse, neglect and exploitation on its Web site, ncea.aoa.gov.

Some of the warning signs of exploitation, including coercion, might be visible signs such as bruises, pressure marks, broken bones, abrasions and burns, the center advised.

Other less visible signs include a vulnerable adult cutting back on his favorite activities, such as eating out on a regular basis.

"Unexplained withdrawal from normal activities, a sudden change in alertness, and unusual depression may be indicators of emotional abuse," the center advised. "Sudden changes in financial situations may be the result of exploitation. Strained or tense relationships, frequent arguments between the caregiver and elderly person are also signs."

One other reason may explain why vulnerable adults decline, in particular, to report financial exploitation are the following:

Embarrassment.

The least reported person-to-person crime was rape, Domestic violence is often underreported. Those things that happen in the family sometimes just are not reported.

What happens, however, is that either the vulnerable adult, a concerned family member or a neighbor finally reaches a breaking point, indicates Peck. When a person reaches the top of their tolerance level, that's when it gets reported.

Continue reading "Financial Elder Abuse Severely Underreported" »

It could be human nature to say that such a thing could never happen to anyone. An attorney that specialized in Elder Law and protecting the elderly, was hired after researching the best, moreover, the attorney referred the client to a home health aid to monitor his mother in the nursing home to shield her from and report any abuse.

Even more, client hired a financial adviser to monitor her investments and pay bills when necessary. Additionally, client employed a property manager to manage, lease, maintain, collect the rents from her home and deposit the proceeds into her account. So how was it possible that this support system collapsed, completely states California Elder Law Attorney Steven C. Peck.
The home health aid, recommended by both the attorney and the financial adviser, told client his mother had to sell her home to pay for her medical expenses. Red flags went up. Perhaps unknown to the home health aid client had enrolled my mother in a Kaiser Permanente medical insurance program and had taken out long term care insurance as well.

Client's suspicions that the home health aid was lying about the cause of the sale of the home were confirmed with the appearance of the tax statement. Only two thousand dollars in medical expenses. During the police interview, the home health aid stated that she "misspoke" and stated instead that the home was sold because of the expense of cost for repairs. The cost of the repairs, $10,000. As shown in the real estate sales contract, my mother reduced the sales price of her home to the buyer by $10,000 to make the stated repairs. sounds like more than a red flag indicates California Elder Abuse Attorney Peck.
The home had been generating $10,000 a year in rental income for client's mother. She had owned the home for twenty-five years and it was insured against damage and fire.

Client's mother's attorney, during an interview by law enforcement, stated that "no rights whatsoever" were given to the home health aid. A false representation, according to court documents the home health aid had acquired financial Power of Attorney. Client discovered the transfer of my Power of Attorney to the home health aid after client's mother's death. Very suspicious? The law enforcement officer could have verified the attorney's statement and claims by checking county public records or asking the attorney for a review of my mother's legal file. This was not meant to be.

Meanwhile Client started asking questions of others- the financial adviser, the real estate broker, the property manager, and the financial advisers,client's mother's home was put on the market and sold for a profit of US$300,000. An attorney informed client that the home was probably sold so that the sale of the home could not be rescinded. The sale of a home under emotional duress and a sale based on fraudulent foundation could be rescinded. in many instances states Los Angeles Elder Abuse Attorney Steven C. Peck.
Kaiser Permanente physician Barbara Paul, M.D. recorded in the Patient Progress Report six days before mother, age 87, signed the contract to sell her home that "Since Thursday a lot of probs piling up/decisions going in circles/trouble deciding what to do. Now w/songs playing over and over in her head for almost a week. A/P Paranoia w/auditory hallucinations".

For the past week the home health aid had been taking client's mother to meetings with the attorney, financial adviser and real estate broker about selling her home. All eventually benefited by the commissions and fees earned directly from the sale of the home and these are the trusted individuals?

Shortly after client's mother signed the contract to sell her home, she was admitted to Kaiser Permanente Emergency Room with the presenting complaint, "I had to give up my home." According to Kaiser Permanente medical report, three days later she was diagnosed with Dementia.

The law enforcement investigator, according to the police report, who was assigned to investigate client's complaint did not interview the physicians or psychiatrists who had provided treatment for my mother. He could have interviewed them about client mother's state of mind before, during, and after she signed the contract, but no interview took place... even after client's complaint was published as front page news in a local paper. Client mother's attorney stated to the law enforcement investigator my mother was "mentally competent" to make the decision to sell her home, as well as manage her financial affairs. According to the police report, the police investigator diminished the seriousness of my mother's mental state.

The attorney selected the real estate broker that sold the home. The real estate broker who listed and sold the home reported to the police investigator that client mother, mentally, was "sharp as a tack". All proceeds from the sale of the home were used to open a new account at a stock investment company managed by a business associate of the attorney, Northwestern Mutual. The attorney stated that the account was shut down after the collapse of the stock market. The attorney stated that the remaining funds were transferred to client mother's original account at Prudential Securities. That does not make sense to me. The police report does not mention what the opening balance was at Northwestern nor the closing balance. The new Northwestern financial adviser was never interviewed during the police investigation. The closing balance equaled the opened balance. Does that constitute the failure of the account? The police investigator could have asked these questions. Is the transfer of the funds from Northwestern to Prudential a statement of Northwestern's incompetence, or were the funds transferred for a different reason? When client asked questions about client mother's Prudential Securities financial adviser about her account, the financial adviser stated,"You are getting my hackles up!!!"

Client then filed a complaint with the Securities and Exchange Commission. Their email response to the client complaint was this, "Hire an attorney. It is your word against theirs." and that was the last client heard from them. Client does not have $75,000 to hire an attorney. Elder abuse and fraud persist for these very reasons. Complaints filed with regulatory agencies are but voices in the wind. Legislation passed to fight against elder abuse is worthless when regulatory agencies do not respond and follow through with filings by complainants. The result of these types of responses has a horrifying and stun to silence effect on the complainants and the victims.

The home health aid wrote a note to Kaiser Permanente instructing them to contact her and not client regarding any issues involving my mother. This information, written on a small yellow sticky note, was recovered when client obtained client mother's medical files from Kaiser Permanente after her death.

The home health aids´ invoices recovered after client mother´s death showed billings for up to $60.00 a day at $20.00 per hour for cleaning her room at the nursing home. Room cleaning and maintenance had been included in the services provided by the nursing home and those services were billed for in the monthly nursing home fees.

Client then actually reported client's complaint to the State of California Governor's Office emergency response unit for elder abuse. Agent Araceli Flores was assigned to client's complaint. Agent Flores met with client several days later. Then she spoke to the police investigator assigned to investigate client's complaint. Client waited a month for a response from Agent Flores. Nothing.

Client then called her at her Sacramento office asking her what had happened, why had client not heard from her. No one answered the phone. Client then left a telephone message with her answering service, cries and pleading to her for her to continue her investigation and please contact client. She never responded. Client then called her supervisor leaving a message for help. Again, no response.

Two months later, client received a banker's box from the State of California elder abuse investigating unit containing the files client had given to Agent Flores for review. There was no cover letter in the box, only client's research and findings involving my complaint.

After reading the police report involving my complaint client learned that Agent Flores was convinced by the police investigator to drop my complaint.... everything would be taken care of on a local level. No need for an independent investigation by State of California officials.

The police investigator could have allowed Agent Flores to continue her investigation. What would have been the harm? Allowing the State of California to conduct its own independent investigation would have not cost the local police department any cost in labor hours or any other of its resources. It was about that time that client stopped contacting other state and federal agencies about client's complaint. Crushed and demoralized, Client thought any other independent investigation would be shut down by the local police department.

At the time of client's interview with the police investigator, he informed client that the home health aid still had some of client mother's funds in her Prudential Securities account. A year and a half had passed since client mother's death. Client asked the police investigator why client mother's attorney, financial adviser, or home health aid had not informed client of the existence of these funds? The police investigator responded, "The money is probably being used to pay bills." A year and a half after client mother's death? What bills? No accounting was provided showing what bills remained unpaid. During the entire course of client's independent investigation, the home health aid refused for over one year to respond to client telephone calls, emails, and USPS certified mail client had sent to her. She cancelled her email account. What was client mother's money doing in the home health aid's account? And, an account with Prudential! Approximately two weeks after the police investigator was informed of the existence of the funds client received a check from Prudential Securities for $6,300.00. There was no letter providing an explanation for the check. The check did not list the home health aid's name. The name of a subsidiary company of Prudential was named as payee.

Client mother´s elder law attorney is still in business today. The real estate broker and the financial adviser, both working for international corporations, remain in business. The home health aid, according to her attorney´s court testimony "lost her business" of $60,000 a year. No demand for retraction of information client provided the three front page newspaper articles about those people was made. No counter lawsuit for defamation or libel was filed.

Client is now in litigation and is in a state of emotional and physical collapse under the multiple pressures of the shocks of discovery, trial preparation, key witnesses repeated refusals to accept subpoenas, the police investigator now asking client to change the date of the trial, client's uncertainty if I had answered demurs correctly, strict protocols for court document preparation, court deadlines, trial management meetings, settlement conference preparation, preparation for deposition and cross-examination questioning of the defendant and the witnesses. Client was unable to take the legal proceedings as a result of the deteriorated emotional and physical condition client was in and suggested client as a result thereof drop legal proceedings. Client agreed. Immediately client's attorney called the defendant's attorney and said, "We have a settlement!"

Continue reading "Elder Abuse - Real Estate Fraud - Financial Fraud: A Typical Sad Scenario" »

Investment News reported on 1/4/10 that there are many claims of financial elder abuse in stockbroker fraud arbitrations, but that the Financial Industry Regulatory Authority (FINRA) rarely cites the abuse when handing out awards. Recently, however, FINRA granted two awards to senior citizens who claimed to have been defrauded by brokers indicates California Financial Elder Abuse Attorney Steven C. Peck.

One award went to a 95-year-old investor who accused StockCross Financial Services Inc. and two of its brokers of misconduct and self-dealing. According to the arbitration, which was filed in March 2009, the brokers recommended unsuitable and risky investments and put the elder's home at risk. They then allegedly dropped him as a client after bilking him of all his assets, including his cash reserves, insurance money and home equity states Los Angeles Elder Abuse Lawyer Steven C. Peck.

Because the arbitration was filed in California, the plaintiff, David Wolfson, was entitled to treble damages. Wolfson won a total of $1.6 million, including $320,000 in compensatory damages, $960,000 in damages for elder abuse, $234,000 in legal fees and an additional $83,000 in other fees. StockCross was also ordered to pay $10,000 for not following discovery orders.

StockCross has said that it will fight the decision and will file a motion to vacate. However, FINRA awards are difficult to overturn.

Earlier in 2009, FINRA announced that it was permanently barring a former New York broker from the securities industry for defrauding a senior citizen out of more than $500,000. The 90-year-old investor died before his daughter brought the broker's activities to FINRA's attention.

According to FINRA, the customer invested approximately $500,000 between 2004 and 2006 in a speculative, development-stage company that did not have publicly available financial information. The financial advisor knew this information, but recommended the company to his client anyhow. Furthermore, FINRA found that the broker sold those securities without the knowledge of the two brokerage firms with which he was registered.

The client reportedly paid between $3 and $4 for stock in the company, although there was no reasonable grounds for valuing the stock at those prices. The broker made approximately $76,000 in commissions for the sale of those stocks.

"[The broker] was found to have effected unsuitable investments for the customer given the customer's age and financial condition," FINRA wrote.

The stockbroker neither denied nor confirmed any wrongdoing in the situation.

Continue reading "Financial Elder Abuse Prevelant in Stockbroker Arbitrations" »

California Elder Abuse Lawyer Steven C. Peck states " the following items are indicative of financial elder abuse and should be brought to the attention of the local authorities or an expereinced elder abuse attorney immediately":

F1
Senior reports being a victim of financial exploitation

F2
Living Will or Living Trust with suspect as executor/trustee

F3
Signatures on some documents unlike victim's

F4
Victim's signature on documents that were signed/dated when victim was unable to write

F5
Victim coerced into signing a contract, will, etc

F6
Victim's signature forged on documents; inancial transaction documents

F7
Disappearance of jewelry, large ticket items, or antiques

F8
Victim's signature forged on documents transferring title(s) to real or personal property/possessions

F9
Victim cannot explain or understand documents created for victim to sign

F10
Abrupt changes in a will or other financial documents

F11
Recent actions (granting Power of Attorney or changing/creating a will) when the victim is not capable of making informed decisions

F12
Missing funds or personal belongings

F13
Misuse of money or possessions

F14
Improper actions taken under POA/conservatorship/guardianship

F15
Numerous unpaid bills/overdue rent when a surrogate has been delegated responsibility to ensure payment

F16
Checks cashed or ATM withdrawals made without authorization/permission

F17
Sudden or unusual banking activity, including switching banks, adding names to account, large withdrawals (especially if made by person accompanying victim), ATM activity by a homebound victim

F18
Victim no longer receives bank statements

F19
Recent acquaintances declared great affection for the victim and then isolated the victim from friends and/or family

F20
Recent acquaintance promised life-long care in exchange for deeding property and/or assigning assets to the acquaintance

F21
Sudden appearance of previously uninvolved relatives claiming rights to manage elder's affairs and possessions

F22
Unexplained/sudden transfer of assets to a relative (especially recently appearing relative) or someone outside the family

F23
Family member or caretaker provides services that are unnecessary

F24
Person other than a caregiver exercises control over victim by isolating victim from friends and family

F25
Victim's living situation and/or level of care not commensurate with available financial resources

F26
Unusual concern by caregiver that an excessive amount of money is being expended on the care of the victim

F27
Implausible explanation for lack of amenities (TV, personal grooming items, appropriate clothing, etc) that the estate can well afford.

Continue reading "The Financial Elder Abuse Checklist: What To Look For" »

Financial Elder Abuse scams are on the rise.

Jo Rivers, 80, feels embarrassed and angry that she got scammed out of $2,100.

This elder says a caller recently convinced her to wire money to Ohio..

"They called me on the phone and they wanted me to send money to my son," she said. But Hall's son wasn't in Ohio. The senior says she got confused and wired the money anyway.

"Oh I was very embarrassed and stupid," she said.

But she's not alone. The ailing economy has desperate people looking for easy targets says California Financial Elder Abuse Attorney Steven C. Peck.

"They (seniors) come from a trusting generation and a lot of people take advantage of that," says Peck.

The Department of Consumer Affairs is teaming up with the Contractors State License Board to host "Senior Scam Stopper Workshops" across the state.

Never give out personal information over the phone unless they initiate the call. And if you're hiring a contractor, make sure they're licensed says California Elder Law Attorney Steven C. Peck.

Popular scams for instance, include people calling seniors telling them they've missed jury duty and must pay money or turn over personal information to avoid going to jail.

Many California seniors have also been approached by scammers in grocery store parking lots.

"Somebody will come up and whack their hand on the side of the car and then tell the senior you hit my car,"

That's what happened to 81-year-old Nell Adams, who agreed to go to the bank and pay a couple $300.

"They wanted money and dumb me, I was willing to pay it," Adams said.

Fortunately someone witnessed what the couple was pulling and scared them off. Consumer advocates say it's important seniors are aware of the scams and take steps to protect themselves.

"My hope is to educate people so they're proactive and identify these frauds and scams and don't get taken" says Peck.

Continue reading "Financial Elder Abuse Scams Are On The Rise" »

Reported cases of financial elder abuse, physical abuse and nursing home abuse and neglect inflicted upon elderly people are rising in California.

"Elderly people were beginning to speak up when they never used to, california elder law attorney Steven C. Peck says.

Figures for 2009 were not yet available but in 2008, in California, there were thousands of confirmed cases of elder abuse, which refers to abuse of people over 65. Most seem to concern abuse perpetrated by family members.

The most common form of elder abuse was financial.

Frequent cases included when families "helped themselves to their parents' money", demanded money for drugs and alcohol or moved in and lived off them Peck states.

Physical abuse also occurred and that sometimes was a result of unresolved family issues or alcohol and drugs.

Seeing an 80-year-old with bruises all over their face broke is terrible. However, the issue is not a new one. "It has always been there, it's just been hidden, says Peck.

"It's behind closed doors,"

Continue reading " Financial Elder Abuse, Physical Abuse, and Nursing Home Abuse and Neglect are Rising In California" »

Stopping financial elder abuse It's pathetic.

Many Americans in the 60-plus age group are victims of financial abuse, often by a close relative, caregiver, friend or acquaintance.

The National Center on Elder Abuse said there may be at least 5 million financial abuse victims in the United States each year.

You may see unpaid bills stacking up, Numerous checks may be written to "cash." The person may have a new will, though they seem incapable of making one.

The person may be engaging in some uncharacteristic activity, such as withdrawing large sums of money in a secretive manner, selling property, changing a car title, cashing in a life insurance policy or changing beneficiaries. says elder financial abuse attorney Steven C. Peck.
He or she may have a new acquaintance who may now live in the house. A new acquaintance may be encouraging the elderly person to withdraw funds and may appear to have undue influence.

Also, an elderly person that usually is friendly now may have become withdrawn or subdued.

Perhaps the person seems fearful of a caregiver or relative.

Someone may be writing or signing checks or other documents for the elderly person.

Maybe the elderly person has signed a power of attorney, yet seems confused about what that means.

Or somebody is using the person's power of attorney, even though the person is fully capable of making decisions.

Continue reading "Financial Elder Abuse: Pathetic" »

Given the close ties between reverse mortgage fraud and elder abuse, it is unsurprising that the NRMLA Annual Conference in San Diego last month featured a session on "Spotting Elder Financial Abuse--And What You Should Do About It."

While there are many different types of fraud and elder abuse, the panel was interesting--especially in the fact that it managed not to repeat too much information from the NRMLA regional conferences and from the session on elder abuse at the Mortgage Bankers Association (MBA) Reverse Mortgage Conference. The gist of the session was fairly new.

One large fraud topic is identity fraud, which had been covered extensively at the MBA Reverse Mortgage Conference. However, it was still interesting to learn that of the 8.1 million identity theft victims in the US, 9-10% are elderly.

The biggest question raised by the session was that of mental capacity and undue influence. As the panelists pointed out, there have been many high profile cases in the news recently with wealthy heiresses arguably being taken advantage of by younger men. As they pointed out, there are more agreements on some kinds of mental capacity than others. Wills, for example, are generally well understood. Other issues though, beyond just the capacity to alter a will, include allegations of "brainwashing" and "mind control." Since reverse mortgage loan officers and counselors talk with and often meet the senior, they are in a position to spot problems more than others.

The panel highlighted four key questions reverse mortgage loan officers should consider in determining whether the reverse mortgage will be used as a tool of elder abuse or fraud.

1.Does the senior understand what a reverse mortgage is?
2.What is the money being used for? /Who's going to benefit?
3.Is someone threatening the senior to get the mortgage?
4.Is this really in the senior's best interest or is there something that can be done another way?

Continue reading "Spotting Financial Elder Abuse: Reverse Mortgage Concerns" »