Financial abuse grows in California, especially with elderly; Nervig can provide legal help

When it comes it comes to financial security, advice that sounds too good to be true probably is, according to Fallbrook investment loss attorney Richard Nervig.

“More than 200,000 Californians are victims of financial abuse every year,” Nervig said in an interview, elaborating that financial exploitation of the elderly is all too common. After 22 years in practice, with admissions in three states, Nervig has proven himself expert in the area of financial dispute resolution.

Nervig subscribes to the idea that as the herd gets bigger, so does the number of predators, and with baby boomers retiring, there is a “perfect storm situation” of elder financial fraud brewing for the unaware. “With a huge number of elderly people and interest rates at historical lows, risks are there for falling prey to financial predators.”

According to Nervig, peddlers of fraudulent investments cater to the elderly’s need for safety and higher yields. For many retirees, simply parking investment dollars into safe, interest bearing certificates of deposit isn’t enough. “You can’t just park your money in a CD that is safe and hope to generate enough income to supplement social security to live,” Nervig said.

A financial advisor might recommend a legitimate course of action to generate revenue, but many can be too risky or unsuitable for the retired investor. “Worst case scenario, financial advisors may guide investors into a scam or ponzi scheme situation,” Nervig said, and that is where his expert legal advice comes into play.

Recent schemes Nervig has observed in his practice involve private placements, or fraud involving tenants in common real estate investments. “Most recently, I’ve dealt with an arrest of fraud with regard to a broker trustee for a 79-year-old woman’s account where the trustee was giving her money to a friend,” Nervig said. In this case, the elderly woman suffered from Alzheimer’s disease, and Nervig worked with the daughter to hire new trustees for her mother’s estate.

“Most people don’t read through the reams of paperwork that come with brokerage statements,” Nervig stated, “and that is where things can fall through the cracks.” Nervig’s legal practice includes reviewing those agreements to help navigate the ground of arbitration available for clients who inadvertently purchase risky investments.

“If you were savvy enough to review your prospectus, you may notice where the investment states there is a high degree of risk,” Nervig explained.

“Unfortunately, for many retirees, they come from a generation where you can close a deal on a handshake, and a person’s word was their bond.”

There are financial professionals and investment providers that are not honest, and Nervig has made it his career to assist those who have fallen prey to fraudulent financial practices.

Nervig suggests paying close attention when dealing with independent brokers, rather than the larger known mutual funds or brokerage firms, “When you open a brokerage account with a firm or through an advisor, nine times out of ten, your new agreement will have an arbitration clause. You won’t sue your broker or advisor in open court, your case will go through arbitration.” According to Nervig, the majority of litigation in cases of elder fraud end up being settled and it can take from months to years to have cases sorted out.

“I prefer wearing the white hat, and securities fraud has become my passion,” said Nervig. He offers free consultation advice to his clients for just that reason.

“One of the best ways to protect your elderly parent or grandparent is to be involved in their financial lives. Have a professional review their brokerage statements,” Nervig advised.

Retirees who have sustained investment losses do have recourse, according to Nervig. Investors should ask themselves if they fully understand what they’ve purchased? Are those investments too risky? Were all the risks disclosed to me prior to purchase? Did my broker obtain my permission before each transaction? and does there seem to be a lot of activity in my accounts? “If yes, and losses have been sustained, consult a legal professional to sue to recover investment losses,” Nervig said.

For more information, visit http://www.NervigLaw.com or, for a free consultation, call (800) 837-0441.