financial abuse Tag Archives — Securities Fraud Lawyers Blog

Protecting Your Investments Against Affinity Fraud

Published on: April 15, 2018 | by Savage Villoch Law, PLLC

In a recently filed complaint,The SEC charged a prominent pastor in a scheme to defraud investors out of millions of dollars. Using his religious clout and reputation, the pastor leveraged investments out of devoted followers, mainly elderly. Between 2013 and 2014, the SEC alleges that Kirbyjon Caldwell, Pastor of the Windsor Village Methodist Church and Gregory Alan Smith, a financial planner previously barred by FINRA managed to dupe investors out of nearly $3.5 million. Caldwell and Smith used most of the funds to cover personal expenses. They funneled the remaining funds to off-shore accounts.

The case represents a pervasive issue for financial and securities regulators: affinity fraud.

What is affinity fraud?

8 Tips for Safeguarding Your Online Investments Against Fraud

Published on: April 28, 2017 | by Savage Villoch Law, PLLC

In the internet age, cyber crime has become one of the top platforms for investment fraud and financial crimes. Many investors have begun making online investments instead of using traditional investment platforms. With this, comes the need to educate and inform about fraud targeting online investments.

The Securities and Exchange Commission has published an investor bulletin outlining helpful tips and resources to protect your online investments from fraud.

8 Tips for Protecting Online Investments

Top 5 Ways to Prevent Elder Financial Abuse

Published on: April 14, 2017 | by Savage Villoch Law, PLLC

A recent New York Times article spotlights a renewed approach and increased legislative response to financial elder abuse. Featured in the article are personal accounts of real people whose family members and close friends have been affected by elder financial abuse.

Investment fraud and financial abuse directed towards seniors and the elderly has been a rising concern. We recently featured an issue focusing on the problem of increased elder financial abuse. Most elder abuse is perpetrated against those between the ages of 80-90, suffering from degenerative diseases such as Alzheimer’s.

Now, the issue is getting legislative attention. According to the Times article, 33 states have considered the issue of specific laws directed at financial abuse against the elderly. Other states are revisiting their existing laws.

CFPB Database Reveals Wolves of Wall Street

Published on: September 7, 2016 | by Savage Villoch Law, PLLC

Jordan Belfort may have bestowed the title ‘Wolf of Wall Street’ on himself, but we all know that wolves travel in packs – and it looks like Wall Street is full of them. The Consumer Financial Protection Bureau (CFPB) a financial watch-dog group has recently released a database outlining complaints against several of the nation’s top banking and investment groups. The database, which focuses heavily on Wall Street stalwarts, including Citibank (part of Citigroup) and Chase (of JPMorgan Chase), is chock full of consumer complaints against these financial giants in regards to predatory banking tactics.

By navigating a simple search by name of any number of these banks, consumers can find mass-stores of complaints lodged against them, most stemming from the 1999 repeal of the Glass-Steagall Act.

Instituted in 1933, the Glass-Steagell Act served to prevent banks holding insured deposits from affiliating with investment banks and brokerage firms on Wall Street. The Glass-Steagall Act protected consumers from falling prey to stock fraud and financial abuse from these entities. Under pressure from large Wall Street firms, such as Citigroup, the Act was repealed under the Clinton Administration, ushering in a new era of gross misconduct and financial abuse on an unwitting public and laying the groundwork for the eventual economic crash in 2008.