Robert H. Rex Securities Law Blog on Lawyers.com

Abuse of Investment Account May Be Elder Abuse

Tuesday, February 26, 2013 by Robert H. Rex

Elder abuse is
often defined as a single of repeated act, or lack of appropriate
action, occurring in any relationship where there is an expectation of trust, which causes harm or distress to an older person. It is also referred to as:

elder mistreatment
senior abuse
abuse in later life
abuse of older adults

The
types of abuse include physical , psychological and emotional, sexual,
neglect and abandonment. Victims of any of these types of abuse should
consider contacting the Adult Protective Services office in the city or
county where you reside.

Elder
abuse can also involve financial abuse or financial exploitation, for
example the illegal or unauthorized use of a person's money or
valuables. It can also include being deceived and or coerced by a
financial advisor or stockbroker.

The basis of all forms of Elder Abuse stems from the expectation of trust
the older person has for the abuser. In the case of nursing home Elder
Abuse, it is the trust the older person places in the nursing home
staff. In cases involving financial Elder Abuse, it is the trust the
older person places in their trusted adviser or stock broker.

While
the overwhelming majority of financial advisers and stockbrokers are
honest and do their very best to take care of their clients, we can tell
you from experience that there exists a small percentage who will take
advantage of the elderly by trading their account in a manner that
benefits the broker/advisor, and his firm at the expense of the trusting
elderly account holder.

This
abuse can range from over-trading the account or selling high risk high
commission products like REITs, private placements and limited
partnerships, to outright theft .

AARP suggests you think twice if you hear words like this from your broker:

�   "Your profit is guaranteed."

�   "It's an amazingly high rate of return."

�   "There's no risk."

�   "You can get in on the ground floor."

�   "This offer is only available today."

�   "It's a secret investment tip just for you."

�   "I'll get you the paperwork later."

�   "Just make your check out to me."

If
you believe you are the victim of elder financial abuse, you need to
consult with an attorney experienced in pursuing losses from
stockbrokers and brokerage firms. It is likely that you may be able to
recover all or a part of your losses through FINRA arbitration.

We have been helping investors recover stock market losses for 25 years. No charge for initial consultation.

Nationwide representation.

Rex Securities Law

561 391 1900

Posted at 12:10 PM

Topic: Securities