Raymond James Pays $500K After Broker is Accused of Elder Financial Abuse
Broker-Dealer Allegedly Failed To Supervise Ex-Stockbroker Frederick Stow Who Stole Older Investors’ Money
Unfortunately, elder financial abuse continues to be a huge problem. In many instances, the perpetrators have been financial professionals, including those who are registered brokers at well-known brokerage firms. If you (or someone you love) are a senior investor who has suffered losses that you suspect may be caused by broker misconduct or negligence, it is important that you explore your legal options right away.
In September 2022, the US Securities and Exchange Commission (SEC) announced that it reached a settlement with Raymond James & Associates after finding that the broker-dealer failed to supervise its former registered representative Frederick M. Stow. He misappropriated over $900K from two older investors.
The Commission contends that even after Raymond James supervisors expressed concerns to the firm’s Senior-and-at-Risk-Clients group about the way Stow was managing elderly investors’ brokerage accounts, no further investigation was conducted. As a result, Stow was able to misappropriate another $148K from his older victims.
He eventually confessed to elder financial abuse by a broker. In 2021, Stow was sentenced to five years in prison.
In addition to paying a $500K penalty, Raymond James has consented to a censure.
What Is Elder Financial Abuse by a Broker?
Unfortunately, there are brokers and investment advisers who will take advantage of older investors’ vulnerabilities, including their health issues, advanced age, and possible impairments, to defraud them of their hard-earned savings and retirement funds. Not only is this broker fraud but also it is elder financial abuse by a financial advisor and happens to be a crime.
Brokerage firms have a duty to properly supervise their registered representatives to ensure that they are not engaging in any negligent or criminal acts. When a broker-dealer fails in this duty, and elder financial abuse happens, it is important that senior investors and their families know that there are ways to hold a firm liable for violating their trust and enabling their broker to misappropriate their funds.
Why You Should Work With Skilled Senior Investor Fraud Lawyers if You Suspect Elder Financial Abuse
Even if the SEC or another securities regulator has brought a senior investor abuse claim against your broker-dealer, and the firm is sanctioned for their broker’s negligence, this is no guarantee that you will recover damages for the harm that you suffered. For over 30 years, our elder investment fraud attorneys at Shepherd Smith Edwards and Kantas (investorlawyers.com ) have worked with older senior investors, including retirees, and their families, and we have recovered many millions of dollars for our clients. Call (800) 259-9010 today.