Recently, an adviser told me how one of his clients was scammed out of hundreds of thousands of dollars by his son.
Let’s call the client “Bill,” the son “Robert,” the adviser “Phil” and the advisory firm “Registered.”
Phil works on a team at Registered with another wealth adviser and a portfolio manager. All three interact with Bill. Phil is the primary contact. Phil has a long history with Bill. He knows all of Bill’s family members.
Bill is in his late 70’s. He retired from his job as a high-ranking executive with a large pharmaceutical company many years ago. He has a recent history of strokes. Bill has made a full recovery, although his family members believe he has suffered some cognitive impairment. There has been no official adjudication of impairment.
Bill contacted his wealth adviser team and said his son found a “stock guru” who promised very high returns, with little risk. He instructed the team to make a significant transfer from his investment account to his bank, so he could wire money to his son. Bill also insisted that Phil not be told about this transaction because “he would be opposed to it.”
Read the rest of the article on The Huffington Post.