Tuesday, May 12, 2015

Elder Fraud Prosecutions Continue

The SEC is serious about elder fraud, and is investigating and prosecuting cases where it believes such fraud exists.  The latest case - the SEC charged a retirement planning firm and its principals with falsely telling customers that interests in life settlements they offered and sold were “guaranteed,” “safe as CDs,” and “federally insured.” The SEC also alleges that they used a bogus “net worth calculator” that improperly qualified some prospective investors for purchases by including income that investors hadn’t received, such as future pension and Social Security benefits.

Two important points - while the penalties are significant for the financial professionals, and the cost of defense high (fines and penalties are multiples of the profits) - the SEC does not obtain compensation for investors. Investors and financial professionals who are involved in elder fraud claims need an experienced securities attorney to protect their interests.

For more information visit SEC.gov | SEC Sues Retirement Planners for Making False Claims to Investors


The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

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