The baby boomer generation has come of age, along with a substantial increase in pension fraud. Countless retirees have lost a substantial portion of their retirement savings due to personal financial contribution schemes and other ill-advised investments. Also, many individuals have been falsely accused of committing a personal financial contribution scam. An experienced retirement investment fraud attorney knows how to defend a money manager who is the victim of retirement fraud accusations.
Personal Financial Contribution Fraud
When a retiree is counting on the proceeds of a retirement account to fund their future, the reality of a pension scheme can come as quite a shock to an elderly person. The misuse of personal financial contributions by unethical or poorly trained money managers can put quite a crimp in an investor’s retirement plans in Houston, Texas.
Unfortunately, a few greedy stockbrokers and money managers has persuaded many personal financial contribution scam accusations against innocent individuals. Individuals who do commit investment fraud often include unrealistic financial gains for potential investors. Some stockbrokers can be tempted by the large sums of money that can be gained from retirees.
To the average investor or money manager, it must have seemed as though the 1990’s stock market boom would never end. The stockbroker profession was expanding rapidly in Houston, and everyone was investing in stocks. It was full speed ahead, and the average money manager simply wasn’t prepared for the bear market that was about to engulf the financial markets.
Personal Financial Contribution Schemes
The closer an investor gets to retirement age, the more conservative their investment strategy should become. Instead, retirees may be advised to withdraw their retirement benefits in the form of a lump sum. When these funds are invested in exotic financial instruments like unit trusts and annuities, a retiree’s financial future may be in jeopardy.
Proprietary discretionary funds allow a broker to select stock investments and repeatedly collect commissions in Texas. Wrap accounts, on the other hand, make it possible for a money manager to collect a one percent annual management fee regardless of account activity. Aggressive high-tech stock investments, excessive management fees and other investment schemes can easily defraud an investor of their personal wealth and future income. Stockbrokers and money managers that fail to act in the best interest of their clientele may be responsible for paying financial damages to the victim of a retirement scam.