My mom's financial advisor let her husband take all her money… what can I do?

Hey all,

I’m trying to find out if there’s anything I can do about this situation. Here’s what happened:

My mom’s financial advisor in California allowed her husband (not my dad) to drain all her investment money, even though my mom had advanced dementia at the time. This advisor managed her accounts and knew about her dementia because he handled her long-term care insurance paperwork. But instead of contacting me (I was her Power of Attorney), he accepted a state form from her husband naming himself as POA the same day my mom’s doctor officially noted her dementia.

I already filed complaints with the SEC and the CA state office that oversees notaries, but they didn’t do anything. The advisor is still working despite having previous fines for similar misconduct.

Is there anything else I can do? My mom trusted this advisor to keep her money safe, but he ignored her wishes and handed it over to her husband, who wasn’t even listed as a beneficiary. Also, her husband took out a $200,000 loan against her paid-off house and gave it to his daughter. I had to settle on the house with him, so I can’t sue him over that.

Is what the advisor did legal, or is there someone else I can report this to? Thanks for any advice!

You should file a complaint with FINRA instead of the SEC. Also, it’s possible the paperwork was technically in order, but it’s worth hiring a lawyer if you suspect elder abuse.

Montana said:
You should file a complaint with FINRA instead of the SEC. Also, it’s possible the paperwork was technically in order, but it’s worth hiring a lawyer if you suspect elder abuse.

You might want to check out Elder Justice California for more help.

@Vesper
OP mentioned that the mother had a trust with the husband. If he was a trustee, then the advisor might not have done anything wrong. OP may just not fully understand trust laws.

Montana said:
You should file a complaint with FINRA instead of the SEC. Also, it’s possible the paperwork was technically in order, but it’s worth hiring a lawyer if you suspect elder abuse.

Maybe try the CFPB too? They might have some jurisdiction, especially if other agencies aren’t doing anything.

@Jaden
Never hurts to file multiple complaints. CFPB can be a good backup.

@Jaden
CFPB mostly handles credit and payment issues, but if you suspect fraud, it might still be worth a shot. Building up a record against bad actors is helpful.

Montana said:
You should file a complaint with FINRA instead of the SEC. Also, it’s possible the paperwork was technically in order, but it’s worth hiring a lawyer if you suspect elder abuse.

Definitely try FINRA! They take this seriously. Had a somewhat similar situation with my grandmother, and they actually looked into it. A lawyer could help too—they’d know what to ask and check.

Look for a lawyer who specializes in these types of cases.

Pax said:
Look for a lawyer who specializes in these types of cases.

Thanks. Any advice on where to find one?

Lex said:

Pax said:
Look for a lawyer who specializes in these types of cases.

Thanks. Any advice on where to find one?

An elder law attorney would be a good start.

@Zane
Another option could be a divorce attorney who understands community property. They deal with similar laws and might know the specifics here.

Dallas said:
@Zane
Another option could be a divorce attorney who understands community property. They deal with similar laws and might know the specifics here.

Probate litigation might also cover this since it includes elder abuse and estate planning.

Lex said:

Pax said:
Look for a lawyer who specializes in these types of cases.

Thanks. Any advice on where to find one?

Stick to a local lawyer. You don’t want to pay for travel time.

@Clove
Good point, thanks.

Lex said:

Pax said:
Look for a lawyer who specializes in these types of cases.

Thanks. Any advice on where to find one?

You could also contact your state’s Bar Association. They often have a referral service.

@Gray
Even if you go to the wrong type of lawyer, they can usually point you to the right specialist.

Lex said:

Pax said:
Look for a lawyer who specializes in these types of cases.

Thanks. Any advice on where to find one?

You might need an elder law attorney or trusts and estates attorney with a focus on litigation, though it’s better if you can avoid going to court.

Lex said:

Pax said:
Look for a lawyer who specializes in these types of cases.

Thanks. Any advice on where to find one?

Look for someone experienced in professional liability claims against financial advisors.

Lex said:

Pax said:
Look for a lawyer who specializes in these types of cases.

Thanks. Any advice on where to find one?

I know a lawyer specializing in elder abuse out of Stockton, CA. DM me if you’d like their info.