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

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

May 1, 2025
FINRA Fines Sanctuary Wealth $150,000 for AML Program Deficiencies

FINRA has fined and censured independent broker-dealer Sanctuary Wealth Management $150,000 for failing to establish an adequate anti-money laundering (AML) program to detect and report suspicious transactions.

April 30, 2025
Cambridge Investment Research Advisors to Pay $15 Million Fine Over Undisclosed Conflicts in Investment Recommendations

Cambridge Investment Research Advisors (CIRA) has agreed to pay $15 million to settle allegations brought by the Securities and Exchange Commission (SEC), which accused the firm of failing to disclose multiple conflicts of interest in its investment recommendations.

April 29, 2025
Merrill Lynch Fires Veteran Advisor for Ignoring Mandated Commission Discounts

Merrill Lynch has terminated Daniel G. Diaz, a 37-year industry veteran, for refusing to apply commission discounts to certain client accounts as instructed by management, according to his Central Registration Depository (CRD) record.