Key Takeaway: Elder financial abuse by financial advisors costs American seniors more than $28.3 billion annually, with a median loss of $50,000 per victim when a professional is involved — and FINRA has specific rules to protect senior investors, including the authority to place holds on suspicious transactions.

Elder Financial Abuse Lawyer — Protecting Senior Investors From Exploitation

Your parents spent decades building their retirement savings. They trusted a financial advisor to protect and grow that nest egg. But somewhere along the way, something went wrong — unexplained trades, investments that made no sense for someone their age, or money that simply disappeared.

If this sounds familiar, you are not alone. Elder financial abuse by financial advisors is one of the most devastating and underreported forms of exploitation in the United States, and the people responsible are often the very professionals seniors trusted most. The National Center on Elder Abuse estimates that only 1 in 44 cases of elder financial exploitation is ever reported to authorities.

Haselkorn & Thibaut has over 50 years of experience fighting for senior investors who have been exploited by financial advisors. Our 98% success rate reflects our commitment to holding bad actors accountable and recovering losses for the most vulnerable investors.

Call 1-888-885-7162 for a free consultation, or contact us online to speak with an elder financial abuse lawyer.

What Is Elder Financial Abuse in Investments?

Elder financial abuse is the illegal, unauthorized, or improper use of an older adult’s funds, property, or assets by someone in a position of trust. When the abuser is a financial advisor or broker, the damage can be catastrophic because these professionals have direct access to investment accounts and the authority to make trades.

According to a landmark AARP Public Policy Institute study, older Americans lose an estimated $28.3 billion or more each year to financial exploitation. While much of this abuse comes from family members and caregivers, financial advisors and broker-dealers account for a significant and growing share — and the losses per victim tend to be dramatically higher when a professional is involved. A 2020 study published in The Gerontologist found that the median loss per victim was $50,000 when a financial professional was the perpetrator, compared to far smaller amounts in cases involving family members.

FINRA has recognized the severity of this problem and enacted specific rules to protect senior investors. FINRA Rule 2165 allows firms to place temporary holds on disbursements when there is a reasonable belief of financial exploitation. FINRA Rule 4512 requires firms to collect the name and contact information of a trusted contact person for senior accounts.

For a comprehensive guide on how elder financial abuse happens in investment accounts, see: Elder Financial Abuse by Financial Advisors: Warning Signs and Legal Options →

Signs Your Loved One May Be a Victim

Unsuitable investments for their age and needs — A 78-year-old retiree on a fixed income is invested in high-risk, illiquid products like non-traded REITs, private placements, or speculative stocks. These investments may have been suitable for a younger, wealthier investor but are completely inappropriate for a senior who needs stability and liquidity. See Unsuitable Investments →
Unexplained or unauthorized trades — The account shows trades that your loved one doesn’t recall approving, or the trading pattern is inconsistent with their investment knowledge and objectives. See Unauthorized Trading →
Excessive trading (churning) — A high volume of trades generating substantial commissions while the account loses value. Seniors who don’t regularly monitor their accounts are prime targets for churning. See Churning & Excessive Trading →
New “friends” or caregivers with undue influence — A financial advisor, caregiver, or new acquaintance suddenly has power of attorney, is listed as a beneficiary, or has been given access to accounts. This may indicate undue influence or outright exploitation.
Missing funds or unexplained withdrawals — Money is disappearing from the account without clear explanation, or withdrawals are being directed to third parties your loved one doesn’t know or can’t recall authorizing.
Changes to estate planning documents — Wills, trusts, or beneficiary designations have been changed to benefit the financial advisor, a caregiver, or someone who recently entered your loved one’s life. These changes may have been made under undue influence or when your loved one lacked the capacity to understand them.
The advisor discourages family involvement — Your loved one’s financial advisor actively discourages them from discussing their finances with family members or becomes defensive when family members ask questions. Isolation is a common tactic of financial exploiters.

Call 1-888-885-7162 for a free consultation, or contact us online — we can help determine whether your loved one has been exploited.

How We Build Your Elder Financial Abuse Case

Account forensic analysis — We obtain and review all account statements, trade confirmations, and account documents to identify unsuitable investments, unauthorized trades, excessive trading, and unexplained withdrawals.
Cognitive capacity assessment — If your loved one was suffering from dementia, Alzheimer’s, or other cognitive impairments at the time of the exploitation, this may strengthen the claim. We work with medical professionals to document cognitive status and its relevance to the advisor’s conduct.
Undue influence investigation — We investigate whether the financial advisor, caregiver, or other individual exerted undue influence over your loved one’s financial decisions. This may include reviewing communications, changes to beneficiary designations, and the circumstances surrounding major financial decisions.
FINRA rule violations — We identify all applicable FINRA rule violations, including Rule 2111 (Suitability), Rule 3260 (Discretionary Accounts), Rule 2165 (Financial Exploitation of Specified Adults), and Rule 4512 (Trusted Contact Person).
Damages calculation — We calculate the total losses, including investment losses, excess fees and commissions, unauthorized withdrawals, and any changes to estate planning that resulted in financial harm.

Common Ways Financial Advisors Exploit Seniors

Selling High-Commission Products

Products like non-traded REITs, private placements, and variable annuities generate commissions of 5–12% for the selling broker — creating a powerful incentive to recommend these products to seniors who should be in conservative, liquid investments. The advisor profits on day one; the senior suffers for years.

Concentration in a Single Product or Sector

An advisor over-concentrates a senior’s portfolio in one product or sector — often the one paying the highest commission. This violates basic diversification principles and exposes the senior to catastrophic risk if that product or sector declines.

Exploiting Cognitive Decline

Advisors who recognize that a client is experiencing cognitive decline may take advantage of the client’s diminished capacity — making trades the client doesn’t understand, changing beneficiary designations, or pressuring the client into financial decisions they wouldn’t have made when they were fully competent.

Failing to Supervise

Brokerage firms have an obligation to supervise their brokers and detect suspicious activity in senior accounts. When firms fail to implement adequate supervision — or ignore red flags like sudden changes in trading patterns or unusual withdrawal requests — they share liability for the resulting losses.

Using Power of Attorney Improperly

A financial advisor who obtains power of attorney — or who influences a cognitively impaired client to grant power of attorney — may use that authority to drain accounts, make unsuitable investments, or direct funds to themselves or their associates.

What You Can Recover

Through FINRA arbitration and other legal avenues, victims of elder financial abuse may recover:

Net investment losses — All losses caused by unsuitable investments, unauthorized trading, churning, or other misconduct
Excess commissions and fees — The difference between what was paid and what should have been paid under a suitable investment strategy
Rescission — Unwinding improper transactions and restoring the account to its prior position
Restitution of misappropriated funds — Recovery of money taken through unauthorized withdrawals, power of attorney abuse, or other exploitation
Interest — Compensation for the time the senior’s money was improperly invested or taken
Attorneys’ fees — May be awarded by the arbitration panel
Punitive damages — Elder financial abuse cases involving intentional exploitation of vulnerable seniors may support punitive damage awards

Elder financial abuse claims often result in significant recoveries because arbitrators and regulators take the exploitation of seniors particularly seriously. FINRA enforcement actions against brokers who exploit seniors frequently result in bars, fines, and restitution orders.

Why Choose Our Firm

Over 50 years of experience recovering losses for senior investors
98% success rate across all investment fraud cases
Free consultation — we evaluate your case at no cost and with no obligation
Contingency fee — you pay nothing unless we recover money for you
Nationwide representation — we handle cases in all 50 states
Sensitive and compassionate approach — we understand the emotional complexity of elder financial abuse cases
Experience working with families — we regularly represent family members acting on behalf of exploited seniors

Call 1-888-885-7162 for a free consultation, or contact us online — we can help protect your loved one and pursue recovery.

Related Practice Areas

FAQ

What qualifies as “elder” for financial abuse claims? FINRA defines a “specified adult” under Rule 2165 as anyone age 65 or older, or anyone age 18 or older who has a mental or physical impairment that renders them unable to protect their own interests. Many state elder abuse statutes use age 60 or 65 as the threshold. Regardless of the specific age cutoff, the key question is whether the advisor exploited the investor’s age, cognitive status, or vulnerability.

Can I file a claim on behalf of my parent? Yes. If your parent is unable to manage their own affairs due to cognitive impairment, you may be able to file a claim on their behalf as a conservator, guardian, or holder of power of attorney. Even without formal legal authority, our firm can help you take the initial steps to protect your parent’s assets and pursue recovery. Time is critical — the sooner you act, the more we can do.

What should I do if I suspect elder financial abuse? Take these steps immediately: (1) Gather your loved one’s account statements and financial documents; (2) Contact our firm for a free evaluation; (3) If you believe the abuse is ongoing, contact the brokerage firm’s compliance department and request a hold on the account under FINRA Rule 2165; (4) File a report with your state Adult Protective Services agency; (5) Consider contacting local law enforcement if criminal activity is suspected.

What is FINRA Rule 2165? FINRA Rule 2165 allows brokerage firms to place a temporary hold on disbursements from the account of a “specified adult” (age 65+, or 18+ with impairment) when there is a reasonable belief that the adult is being financially exploited. The hold can last up to 15 business days (with a 10-day extension if needed), providing time to investigate and protect the account. While this rule protects against future withdrawals, it doesn’t address losses that have already occurred — which is where our firm comes in.

How long do I have to file an elder financial abuse claim? Time limits vary. FINRA arbitration claims must generally be filed within 6 years of the events giving rise to the dispute. State elder abuse statutes may have different deadlines, sometimes ranging from 2 to 6 years. Some states have extended or tolled statutes of limitations when the victim is incapacitated. Because elder abuse often continues for years before discovery, the clock may start later than you expect — but you should contact us promptly to preserve all options.

Can a financial advisor go to jail for elder financial abuse? Yes. Elder financial abuse can be both a civil violation (giving rise to FINRA arbitration claims) and a criminal offense. Many states have criminal elder abuse statutes that carry prison sentences for financial exploitation of seniors. While our firm focuses on civil recovery through FINRA arbitration, we can also refer cases for criminal investigation when appropriate. Criminal proceedings and civil proceedings are separate — you can pursue both simultaneously.

This page is for informational purposes only and does not constitute legal advice. Past results do not guarantee future outcomes.