Posted in: FINRA | Senior Investors | Greedy Brokers | Risky Investments |
Under California law, plaintiffs in FINRA arbitrations can see their damages automatically tripled if an arbitrator cites elder abuse.
That is precisely what happened last week, as FINRA ordered StockCross Financial and two of its brokers to pay a 95-year-old man $1.6 million.
David Wolfson claimed two brokers at StockCross solicited numerous unsuitable investments that eventually drained over $300,000 in assets. According to InvestmentNews.com, Thomas Cooper and Peter Boorn encouraged Wolfson to trade on margin, meaning he was borrowing against credit to purchase securities.
Wolfson would eventually lose equity from his home, his medical cash reserves, and insurance money to replace his automobile. Though he had been a client with Cooper for over 20 years, Wolfson’s account was immediately dropped once he ran out of money.
What is interesting about this case, in addition to the award, is that it was decided in just nine months. According to FINRA’s arbitration records Wolfson had requested that the panel expedite proceedings, due to failing health. While some might have questioned the motives of a 95-year-old man entering arbitration proceedings, this case proves that any victim of investment fraud - regardless of their health or financial state - can pursue action against their broker.
The brokers at StockCross, who might have been surprised there was an arbitration for a 95-year-old customer, will spend 2010 fighting FINRA’s decision.
Retirees and senior citizens are often victims of financial abuse because of their vulnerability. If you or a family member have already suffered such abuse, do not hesitate to take to contact one of our attorneys for a consultation.
