Senior investors lose millions of dollars each year to investment fraud
committed by some bad brokers who line their own pockets by bilking people
out of their retirement money. With the growing number of retired seniors
in the United States, the financial exploitation of elderly adults is
escalating. The story of former broker Roger Hudspeth is just one example
of how FINRA, the SEC and securities litigation attorneys are cracking
down on unscrupulous brokers who target senior investors.
Senior Investment Fraud
Virginia financial adviser Roger Hudspeth recently pleaded guilty to an
investment fraud scheme that cost senior investors close to $6 million.
He was accused of selling unregistered securities to senior investors
and misrepresenting high-risk securities to steer people who were often
in or nearing retirement toward fraudulent investment offerings. According
to reports from the U.S. Attorney's Office, Hudsppeth spent over $700,000
in investment funds for personal purchases including a new Range Rover.
Hudspeth, along with other associates of Dominion Investment Advisors,
regularly held seminars on ways to maximize social security for senior
investors. During these seminars, investors were
guaranteed high returns on their investments, but never told about the highly speculative and
risky nature of the securities. Hudspeth and his associates intentionally
misrepresented the facts and omitted important information to sell fraudulent
securities to their clients.
As a result of Hudspeth's illegal actions, his licenses were revoked,
Dominion Investment Advisors was permanently closed, and Hudspeth was
prohibited from taking part in future investment advisory activities.
The U.S. Attorney's office filed federal charges for investment fraud
against Hudspeth, and he faces up to 15 years in prison.
According to the North American Securities Administrators Association,
senior investment fraud accounts for 50 percent of all complaints received by state regulators.
Unfortunately, many seniors are given false or misleading information
by unscrupulous brokers who are aiming to increase their own profits.
FINRA and the SEC do not endorse professional titles such as “retirement
advisor” or “senior specialist” that some financial
professionals use to market themselves. To prevent abusive or unscrupulous
sales practices or fraudulent activities that target seniors, it is recommended
that seniors use caution when investing with brokers who use titles that
include such terms. Additionally, FINRA requires brokerage firms to take
the age and risk tolerance of senior investors into account before making
Unethical brokers often use fraudulent investment schemes to put investors'
retirement funds in their own pockets for personal gain. If you have been
a victim of investment fraud,
contact the litigation attorneys at Meyer Wilson at 888-390-6491 for a