Pennsylvania Investor Sues Captrust Over $360,000 Phishing Scam Loss
From the desk of Jim Eccleston at Eccleston Law
A Pennsylvania investor has filed suit against Captrust Financial Advisors, alleging the firm failed to act swiftly in stopping a scam that drained her retirement savings. As reported by Wealth Management, the lawsuit claims that Captrust and its acquired firm, Boston Financial Management (BFM), should have intervened sooner to prevent the loss of more than $360,000.
The phishing scam started with a fraudulent PayPal email alerting the investor to an unauthorized $599 charge. When she called the number provided in the email, she unknowingly gave scammers access to her computer and banking accounts.
The fraudsters proceeded to compromise the investor’s Chase checking accounts, which had payment instructions allowing transfers from her Fidelity IRA accounts. This access enabled the scammers to move funds from her retirement accounts into her Chase accounts before withdrawing them.
Over the following weeks, the scammers systematically transferred $368,400 from under the guise of reversing fraudulent transactions.
According to Wealth Management, the lawsuit claims that the advisor and her firm identified irregular activity in the accounts but failed to act decisively. The advisor, for example, texted the investor to inquire whether she was the one accessing her accounts. The investor, unaware of the scam, did not recognize any fraudulent activity.
The advisor continued reaching out, including after a $99,000 transfer. However, Wealth Management reports that, due to confusion, the investor misunderstood the advisor’s inquiries, believing they were about deposits rather than withdrawals. The complaint argues that the advisor and her firm should have realized that the investor was unaware of the fraud and taken earlier action to stop the unauthorized transfers. The firm ultimately froze the accounts.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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