Elder Financial Abuse
Elder financial abuse is the exploitation of an investor aged 65 or older, or an adult with a disability, by a broker, adviser or someone with access to the account. Tracy Pride Stoneman represents investors in these claims in FINRA arbitration nationwide, from Westcliffe, Colorado.
By Tracy Pride Stoneman, securities arbitration attorney Updated
| What happened | Rule or law | How it is proved |
|---|---|---|
| Exploitation of a senior or vulnerable customer the firm should have caught | FINRA Rule 2165 (temporary holds on suspicious disbursements); Rule 4512(a)(1)(F) (trusted contact person); Senior Safe Act of 2018; in Colorado, mandatory reporting under C.R.S. 18-6.5-108 | The trusted-contact form, hold records, internal escalation and suspicious-activity reports |
| Unsuitable annuity or illiquid product sold to a retiree | FINRA Rule 2111; Rule 2330 (variable annuities) | Surrender period against life expectancy; income needs against the product’s liquidity |
| Power of attorney or third-party control misused | FINRA Rule 3110 (supervision); state elder-abuse and fiduciary statutes | The power of attorney, who actually gave the orders, where the money went |
| Diminished capacity ignored | Rule 2165; FINRA Regulatory Notice 17-11 | Contact notes, trusted-contact outreach, the pattern of trading after the customer’s decline |
A FINRA panel can award compensatory damages (out-of-pocket losses or market-adjusted “well-managed account” damages), interest, costs, attorney’s fees where a statute or contract allows them, and punitive damages in egregious cases. Claims must be filed within six years of the events under FINRA Rule 12206, and shorter state statutes of limitation may also apply.
If any of this sounds like your account, the next step costs nothing: a free, honest evaluation. Tell me what happened or call (719) 783-0303.
Common questions
Elder Financial Abuse: what clients ask
What are the signs of elder financial abuse?
Sudden changes in investments or beneficiaries, unexplained withdrawals, new complex or illiquid products for someone who needs income and access to cash, and a broker or advisor who discourages family involvement.
What do FINRA rules require to protect seniors?
Firms must make reasonable efforts to get the name of a trusted contact person for customer accounts, and they may place temporary holds on disbursements when they suspect an investor 65 or older is being exploited.
Can a family member bring a claim?
A family member acting under a power of attorney, or as a guardian or executor, can often pursue a claim on the investor's behalf. The right approach depends on the investor's situation.
Your move
A free evaluation has no downside other than your time.
Tell me what happened. I will tell you honestly whether you have a case worth pursuing — and every way I can be paid, including contingency: nothing unless you recover.