Tr?id=566623520170033&ev=PageView&noscript=1

Charles Schwab Faces Multiple Lawsuits Alleging Elder Fraud Neglect

Posted on November 11th, 2024 at 2:45 PM
Charles Schwab Faces Multiple Lawsuits Alleging Elder Fraud Neglect

From the desk of Jim Eccleston at Eccleston Law

Charles Schwab and its affiliates are under scrutiny after recent lawsuits allege the firm failed to prevent scammers from defrauding elderly clients. According to Financial Planning, an elderly couple claims Schwab allowed fraudsters to drain nearly $30 million from their accounts, transferring funds to a cryptocurrency exchange through Bank of America. According to the lawsuit, scammers converted $18.5 million into cryptocurrency, leaving it unrecoverable.

This case follows similar allegations from recent months. In one instance, a 92-year-old client lost $278,000. Another case saw a FINRA arbitration panel fine TD Ameritrade, now owned by Schwab, $100,000 for allowing a similar fraud. All three cases followed a pattern where scammers posed as financial institution representatives or law enforcement, tricking clients into transferring assets under the guise of protecting their accounts.

Financial Planning reports that a Schwab spokesperson expressed sympathy for the clients but contended that all transfers were client-authorized. That defense may or may not succeed as the cases are fact-specific and Schwab will be held to its customer protection, operations, compliance, and supervisory procedures.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

1784046159 Law
July 14, 2026
Mariner Wealth Advisors Reports Data Breach Affecting Nearly 9,000 Customers

Mariner Wealth Advisors LLC disclosed a data breach that exposed personal information of 8,995 customers, according to AdvisorHub.

1783957061 Law
July 13, 2026
FINRA Warns of Growing Risks From Finfluencers and AI-Driven Investment Content

Financial Industry Regulatory Authority (FINRA) regulators are raising concerns about the increasing influence of social media personalities and artificial intelligence (AI) on retail investors, particularly those managing their own investments without professional guidance.

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.