Older investors, especially those between the ages of about 50 to 64 facing
a looming retirement, may be particularly vulnerable to
investment fraud, scams, and
Ponzi schemes. A con artist may try to specifically take advantage of the concerns facing
older investors in the pre-retirement age range; it’s important
that you always take the time to consider your financial goals and do
your own research before you decide to invest in a new opportunity—regardless of age.
Why Target Pre-Retirees for Investment Fraud?
Here are a few of the reasons con artists often target pre-retirees:
Pre-retirees may be concerned about the financial strain of an upcoming
retirement and be more likely to fall for a scam that promises substantial,
Pre-retirees are likely to have a more significant savings than younger
investors, meaning they may have more funds available for investment.
Pre-retirees may be concerned about providing for their families in the
long term and feel that the time to invest is running out.
Pre-retirees may be more trusting, especially if the con artist is a friend
Con artists who prey on pre-retirees may try to pressure you to invest
right away, “guarantee” high returns over a short period to
prepare you for retirement, try to convince you to roll your retirement
savings into a new investment, or prey on your financial fears about retirement.
Baby Boomers Are More Vulnerable to Broker Misconduct
Investment loss doesn’t have to be the result of a scam. Sometimes
it is caused by broker misconduct. For example, you could lose money because
of any of the following:
- Investment recommendations were unsuitable
- There was unauthorized trading in your account
- Broker breached his or her fiduciary duty to you
- Investment portfolio had a poor asset allocation
- Failure to execute an order on your behalf
There have also been cases of investors losing money because of inadequate
supervision by the brokerage firm. Take NEXT Financial Group as an illustration.
This company’s main clientele consists of retirees and baby boomers. In 2009,
NEXT Financial Group was fined $1 million by FINRA for failing to properly supervise numerous
client accounts and over 100 branch managers.
How to Get Help after You Have Lost Money in an Investment Scam
If you are a pre-retiree who has lost money in an investment scam, don’t
wait until it’s too late to recover your losses. The experienced
investment fraud attorneys with Meyer Wilson have more than 50 years of
experience helping investment fraud victims recover their losses, and
we would be happy to review your potential case in a completely free and
confidential legal consultation.
Simply fill out the online contact form on this page to get started.