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 just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

1774973592 Law
March 31, 2026
Cybersecurity Breach at Edelman Financial Engines Highlights Growing Risks for Advisory Firms

A recent cybersecurity incident involving Edelman Financial Engines has drawn attention to the increasing number of cyberattacks targeting registered investment advisers, according to Financial Advisor News.

1774884494 Law
March 30, 2026
SEC and CFTC Plan Coordinated Examinations and Enforcement Efforts

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) plan to coordinate examinations and enforcement actions involving firms that fall under both agencies' jurisdiction, signaling a renewed effort to streamline regulatory oversight, according to AdvisorHub.

1774622627 Law
March 27, 2026
FINRA Charges Former Pruco Securities Representative With Forging Dozens of Customer Signatures on Annuity Applications

The Financial Industry Regulatory Authority (FINRA) filed a disciplinary complaint against former Pruco Securities representative Avinesh Shankar alleging he forged customer signatures on annuity paperwork to obtain commissions, according to ThinkAdvisor.