The elderly are targeted by fraudsters because they often have a pile of savings and a steady stream of income. Older people are also more prone to cognitive decline, physical disability, isolation and loneliness — all of which leave them susceptible to exploitation. More often than not, that exploitation is perpetrated by a close family member.
The U.S. Securities and Exchange Commission on Monday announced a major dragnet of stock promotion schemes that disguised promotions as independent research, unveiling settlements with more than a dozen communications firms, company CEOs and writers, and federal litigation against 10 other parties.
The Financial Industry Regulatory Authority updated its sanctions guide on Monday to make sure its in-house judges consider whether accused broker-dealers abused their influence with old and vulnerable clients and to expand on how to adjust penalties when other regulators have imposed sanctions, among other changes.
Seventy-one-year-old William E. Tully is charged with selling unregistered securities and corrupt business influence.
By the year 2050, the number of U.S. residents 65 and older is projected to more than double — from 41 million to 86 million. Baby boomers, defined by the U.S. Census Bureau as those born between 1946 and 1964, have begun to retire and control about 50 percent of the total investable assets in the U.S. — more than $30 trillion in net household wealth. Equally significant, by some estimates, one in five Americans aged 65 and older has been victimized by financial fraud. As wealth continues to concentrate in America’s elderly population, and the elderly population grows ever larger, broker-dealers are increasingly faced with instances of suspected financial exploitation of seniors.
The U.S. Securities and Exchange Commission has determined that a whistleblower will receive a fifth of any monetary sanctions collected in an enforcement action sparked by the tipster’s revelations, saying the cap is appropriate due to the whistleblower’s delayed reporting and connection to the violations.
U.S. Attorney Josh J. Minkler recently announced that his federal office collected for the Southern District of Indiana a total of $7,707,955 in criminal and civil actions in fiscal year 2016
Statutory enactments by federal financial regulatory and various state enforcement agencies have made it easier, safer and financially enticing for employees and former employees to report corporate wrongdoing.
A D.C. federal judge on Wednesday denied a renewed request by a financial services industry group to block the U.S. Department of Labor’s rule expanding the definition of a fiduciary for retirement account investment advisers, saying the court had already determined the DOL’s interpretation was reasonable.
Ameriprise Financial Services Inc. agreed Wednesday to pay a fine to settle the Financial Industry Regulatory Authority’s claims it failed to catch and stop a sales assistant who was siphoning cash from his relatives’ accounts, even though the firm had just improved its supervisory systems after a similar failure.