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

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

January 30, 2026
FINRA Arbitration Panel Orders J.P. Morgan to Amend Form U-5, Flags Potential Pattern of Conduct

A Financial Industry Regulatory Authority (FINRA) arbitration panel recently issued an unusually detailed decision in a dispute between J.P. Morgan Securities and former advisor Joshua David Sappi Biering, shedding rare light on how a firm may deploy - and sometimes abuse - the Form U-5 during advisor departures.

January 29, 2026
OFAC Targets Individual Trustee, Sending a Clear Warning to Fiduciaries and Family Offices

In a rare move, the Office of Foreign Assets Control (OFAC) penalized a former U.S. government official, underscoring that professional gatekeepers can face personal liability for sanctions violations tied to trust administration.

January 28, 2026
FINRA Advances Overhaul of Outside Business Activity Rules to the SEC

FINRA formally has advanced its proposed overhaul of outside business activity (OBA) regulations to the Securities and Exchange Commission.