Jason Cox, a former Edward Jones financial adviser, is criminally charged with allegedly defrauding a disabled woman. Robert C. Yeamans, who is the woman’s now deceased father, had tasked Cox with managing her account. The woman, who is in her fifties, is developmentally disabled.
According to a federal complaint, Cox took at least $160,000 from the investment account set up for her. He allegedly structured transactions by taking out small amounts during a short time period so he wouldn’t have to fulfill bank reporting requirements for bigger sums.
When worried banking officials asked the woman about the money, she told them she put it in a business that Cox owned but did not know what kind of enterprise it was. The bank closed her account.
The woman then opened another account at a different bank where Cox also had an account. Over $145,000, primarily from her Edward Jones account, then went into Cox’s account there. Meantime, her Edward Jones account was emptied out. In just a three-month period, $118,000 of the woman’s funds from the new account was taken out in 21 cash withdrawal transactions.
During an investigation, special agents for the Internal Revenue Service started probing Cox’s activities. He reportedly organized a sale of the woman’s condo. They also discovered that Edward Jones had fired him for stealing another client’s funds.
Unfortunately, there are financial representatives that will take advantage of a mentally disabled investor and bilk them of their funds. Elderly investors with dementia are also at risk of being defrauded. When these types of investors are harmed, this can make it hard for the victims to cover medical expenses, special care, and living expenses, as often they are no longer bringing in other steady income.
This week, in an unrelated case, the Financial Industry Regulatory Authority announced that Jeffrey C. McClure has been permanently barred from the securities industry. McClure is accused of converting close to $89,000 from the bank account of an elderly customer while he worked for Wells Fargo Advisors, LLC (WFC) and an affiliate bank. The bank has paid back the customer’s loss.
According to the self-regulatory organization, over almost two years, ending in August 2014, McClure wrote 36 checks to himself totalling $88,850 from the customer’s bank account at the affiliate. He did this without her consent or knowledge.
McClure had access to her account because the elderly customer had given him permission to pay for her expenses, including rent. Instead, he used her money to cover his personal costs.
You want to speak with an elder financial fraud attorney who can help you or your loved one get the money that was taken. Filing a civil claim is a separate action from criminal charges. Working with an experienced securities law firm can increase your chances of maximum financial recovery. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.
FINRA Bars Broker for Stealing $89,000 From an Elderly Customer, FINRA, December 22, 2014
More Blog Posts:
Reliance Financial Advisors, Owners Face SEC Fraud Charges Involving Hedge Fund, SSEK Blog, December 15, 2014
Ex-California Insurer Charged with Running $11M Ponzi Scam, SSEK Blog, December 8, 2014
Morgan Stanley Fined $4M by the SEC for Market Access Rule Violation, Institutional Investor Securities Blog, December 11, 2014