Pennsylvania Investor Sues Captrust Over $360,000 Phishing Scam Loss

Posted on March 25th, 2025 at 1:00 PM
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.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

October 30, 2025
SEC Sues Former Franchise Group CEO Over $350 Million Hedge Fund Fraud

The Securities and Exchange Commission (SEC) filed a lawsuit against Brian Kahn, former CEO of Franchise Group Inc., alleging he defrauded investors of more than $350 million in a multi-year investment adviser fraud tied to the collapse of Prophecy Asset Management (Prophecy).

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.