Investors Topics

An Unfortunate Rise in Elder Financial Fraud

August 4, 2025 | Jacqueline Candella

Elder financial exploitation, or “EFE,” has been on a rise in recent years. According to a June 2024 press release published by the FBI, “[i]n 2023, a total of $3.4 billion losses were reported, and elder fraud complaints increased by 14% from the year prior.” Then, in its 2025 press release, the FBI indicated that “[a]ccording to 2024 data from the FBI’s Internet Crime Complaint Center (IC3), there was a total of $4.885 billion in losses from 147,127 complaints. This is a 46% increase in complaints from 2023, as well as a 43% increase in losses.”

Based on the FBI’s 2024 Internet Crime Report, investment-related EFE was ranked number five for the amount of complaints filed (9,448), but it was ranked number one in overall losses incurred ($1,834,242,515). If you or your elder family member’s investment accounts have declined in value and it may be the subject of an EFE scheme, you need to consult with an EFE law firm like Malecki Law in New York.

EFE can be caused by a random scammer located elsewhere, a stranger that tries to get to know you and eventually obtains your trust through social media (i.e., pig butchering or romance scams), or someone close to you with access to your accounts (i.e., an adult child or caregiver). The last category can also include your trusted financial professionals.

TradeStation Securities Sanctioned For Misleading Customer Communications Related to Crypto Investments

July 28, 2025 | Adam G. Schreck

FINRA recently announced a Letter of Acceptance, Waiver, and Consent settling claims against TradeStation Securities, Inc. (“TradeStation”) for violating FINRA Rules related to communications with the public regarding cryptocurrency investments offered by an affiliated company. FINRA alleged that, between July and September 2022, TradeStation distributed retail communications concerning crypto assets or services which failed to clearly disclose that the products or services were not being offered through a registered broker-dealer. FINRA also alleged that TradeStation failed to provide a fair and balanced presentation of the benefits and risks of the products discussed in its retail communications. For its violations of FINRA Rule 2210 and Rule 2010, TradeStation agreed to pay $85,000 in fines. If you were misled into making investments in volatile investments without full disclosure of the risks involved, you should contact an experienced securities litigation law firm, like Malecki Law in New York City, to review your account and to determine whether your losses are recoverable.

FINRA Rule 2210 relates to communications with the public initiated by a FINRA member firm and requires the member firm to base retail communications on fair dealing and good faith, as well as to avoid misleading, exaggerated, or false statements of material fact. Rule 2210 further requires member firms to prominently disclose the name of the member firm in such communication and to identify the relationship with any non-FINRA members identified in such communication. Similarly, FINRA Rule 2010 requires member firms to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business. If you were promised a “safe” investment that has experienced considerable losses, you should speak with a seasoned securities attorney, like the attorneys at Malecki Law in New York, to determine whether your financial professional breached duties owed to you.

FINRA flagged numerous communications offered by TradeStation on its website and social media profiles that were in violation of FINRA Rules because of the communications’ propensity to mislead retail investors. FINRA’s investigation was spurred by TradeStation distributing multiple retail communications indicating that it offered crypto products to the public. In reality, the crypto products were being offered by a non-FINRA member affiliate of TradeStation. Worse yet, the crypto affiliate required customers to open TradeStation brokerage accounts to facilitate the transactions, which was never prominently disclosed in the retail communications. FINRA discovered some communications that, in its view, did not offer a complete picture as to the risks associated with the crypto products offered. FINRA determined that the violative conduct ceased because TradeStation’s affiliate stopped offering crypto products and services to the public. If you are a conservative investor whose broker recommended crypto investments, you should consult a securities fraud lawyer, like the lawyers at Malecki Law in downtown Manhattan, to determine whether such recommendations were in your best interests.

New York Tax Preparer and Insurance Agent Charged With Operating $90 Million, Three-Decade-Long Ponzi Scheme That Allegedly Defrauded Nearly 1000 Victims

June 11, 2025 | Adam G. Schreck

On June 9, 2025, New York Attorney General Letitia James announced the arrest of Miles Burton Marshall, a New York tax preparer and insurance agent, pursuant to a 49-count indictment related to a Ponzi scheme Marshall reportedly operated for over three decades. Dating back to the 1990s, Marshall allegedly swindled clients into investing in his phony “Eight Percent Fund” that was purportedly used to facilitate real estate investments, collecting over $50 million from nearly 1000 investors. In reality, Marshall apparently kept the funds he collected to use for his own benefit, namely funding his other business ventures and his personal expenses. If you were an investor in Miles Burton Marshall’s “Eight Percent Fund” and lost your investment, you should speak with an experienced Ponzi scheme attorney, like the ones at Malecki Law in New York City, to determine whether your investment can be recovered.

To operate his scheme, Marshall allegedly solicited investments from his tax and insurance clients, as well as others, by promising high, consistent returns through the purchases, refurbishing, and rentals of residential properties. However, Marshall reportedly never actually used investor proceeds to purchase real estate. Instead, Marshall allegedly used the money to cover operating expenses from his tax preparation business, his printing press, and his storage unit businesses. Marshall also allegedly spent hundreds of thousands of dollars of investors’ funds on personal travel and retail expenses. If you have been defrauded through investments offered by your tax preparer or insurance agent, you should consult a knowledgeable securities fraud law firm, like Malecki Law in downtown Manhattan.

To keep his investors at bay, Marshall is said to have paid out early investors with funds received from new investors, the classic hallmark of a Ponzi scheme. Marshall is even alleged to have directed his employees to generate fraudulent account statements that falsely represented increasing account balances and profits to investors to create a sense of financial security. Given the seemingly consistent returns and doctored statements received by investors, investors were left in the dark and Marshall’s scheme was able to persist until Marshall could no longer solicit enough new investors to keep his veil of legitimacy. If your financial professional has given you account statements or other investment documents that appear doctored or too good to be true, you should review your investment documents with a seasoned investment fraud lawyer, like the lawyers at Malecki Law in New York.

Warren Buffett Is Taking Money Off the Table—Should Your Advisor Have Done the Same?

March 12, 2025 | Malecki Law Team

The stock market has been on a rollercoaster, and many investors—especially retirees—have seen their portfolios endure serious declines. Even Warren Buffett, one of the most respected investors in history, has been selling off stocks and reducing risk exposure. If a legendary investor like Buffett is pulling back, it raises an important question: Should your financial advisor have done the same to protect your retirement savings? If your investment portfolio has endured substantial losses, you should contact a securities law firm, like Malecki Law in New York.

If your portfolio was heavily invested in high-risk stocks, and you suffered major losses, it may be time to question the advice you received. Financial advisors are supposed to guide you through market ups and downs, keeping your retirement savings secure. If your advisor failed to adjust your investments when warning signs appeared, you might have been put at risk unnecessarily. You should have a free consultation with a securities lawyer in New York, like the ones at Malecki Law, to discuss your situation.

Why Did Warren Buffett Reduce His Market Exposure?

Retirement Portfolios and the Market Downturn: Did Your Advisor Prioritize Your Best Interests?

March 10, 2025 | Malecki Law Team

If you’re a retiree or nearing retirement, the latest market downturn may have shaken your confidence in your investments. Watching your portfolio take a hit right before retirement is more than frustrating—it can be devastating. At this stage in life, you don’t have decades to recover from financial losses like younger investors do. That’s why your financial advisor likely should have structured your portfolio with a long-term, conservative strategy designed to weather market swings, rather than chase risky stocks that were popular at the time. If this happened to you, you should reach out to a securities law firm, like Malecki Law in New York.

Regulation Best Interest (Reg BI) requires financial professionals to put their clients’ needs above their own. But what happens when an advisor fails to follow that rule? If your portfolio was built around the high-flying stocks of the moment rather than a balanced strategy designed to protect your retirement savings, you may have been a victim of poor financial advice—or even negligence.

Was Your Portfolio Built for Retirement Stability or Speculation?

Malecki Law Founder Offers Insights on FINRA-Barred Brokers Continuing to Work in the Financial Services Industry

October 17, 2024 | Adam G. Schreck

Despite the weight that a FINRA Bar carries in the financial services industry, investigations show that barred financial professionals have had little trouble remaining employed in the financial services industry. Financial Advisor IQ, along with its sister publication Life Annuity Specialist, is conducting investigations into individuals barred by FINRA who continue to sell financial products, like insurance and annuities, to public investors under state-issued insurance licenses.

The publications have uncovered nearly 350 individuals who are barred by FINRA but maintain active insurance licenses in at least one state. These individuals often continue to sell financial products (other than insurance) to public investors well after they were barred from the industry by FINRA, but when pressed, merely disclose that they are selling “insurance.” If you have been defrauded by a FINRA Barred Broker, you should consult experienced Securities Arbitration Counsel, like the attorneys at Malecki Law in New York.

While insurance regulation varies state by state, some states treat a FINRA Bar as sufficient reason to revoke an individual’s state insurance license. However, other state regulators take a more laissez faire approach, requiring additional misconduct on the part of the barred individual before revoking their insurance license. The inconsistent approach amongst states leaves investors vulnerable to bad actors in the financial services industry.

Retirement in an Ever-Changing Financial Market: Reg BI and KYC Implications

August 7, 2024 | Malecki Law Team

The alarming stock market decline on Monday, August 5, 2024, is a stark reminder of how important it is to plan for your future by educating yourself on the steps you can take to protect your assets, and how your financial advisor should be handling your account. Financial advisors must abide by industry rules and standards. Specifically, investment advisers are bound by the SEC’s Investment Advisers Act, which requires them to act in a fiduciary capacity putting your interests ahead of theirs, and brokers are bound by FINRA rules, which require brokers to act in your best interest in making recommendations. If you suspect that your financial advisor did not properly keep your liquidity needs or best interest in mind, you should consult with a securities law expert, like the attorneys at Malecki Law in New York.

In a concerning turn of events, the Dow Jones Industrial Average declined over 2.5% on Monday, August 5, while the S&P 500 lost 3%, and the Nasdaq index lost 3.4%. This decline allegedly stems from volatile tech stocks, increased unemployment and interest rates.

However, more importantly, financial advisors should keep a close eye on not only financial markets, but current events and world news. There may very well be signs that point to market declines before they occur, and while customers never want to lose money, there are specific customers, like those approaching retirement or who are currently retired, that may have a completely different set of goals and time horizons. For example, retired customers may not want to invest in volatile stocks, or trade aggressively because they may not have time to wait out a recovery in the markets. The onus is on your financial advisor to ensure that your investment strategy is in-line with your best interest, including, but not limited to, your personal liquidity needs, time horizon, and risk tolerance. If your investment strategy does not match up with your needs, or if your financial advisor does not take a proactive approach, you may have a case and should meet with an investor protection attorney, like the lawyers at Malecki Law in New York.

Recognizing World Elder Abuse Awareness Day: Why You Should Stay Vigilant Regarding Trustees and Power of Attorneys

June 14, 2024 | Malecki Law Team

June 15 is recognized as World Elder Abuse Awareness Day. It was initiated by The International Network for the Prevention of Elder Abuse and is recognized by the United Nations. Elder abuse is defined as any act or neglect where there is an expectation of trust, which causes harm to an older person. Harm can be physical or mental, but it can also be financial, especially if there is a designated trustee or power of attorney, who takes advantage of the elderly. If you, or someone you know was, or may have been the subject of any type of financial elder abuse, you should consult with a knowledgeable securities fraud lawyer, like the lawyers at Malecki Law in New York.

Unfortunately, 60% of abusers are family members, and between 1-2 million people over the age of 65 were victims of elder abuse by someone they depended on for care. Aside from the tangible repercussions that affect the elderly and their families, it is also greatly immoral.

A power of attorney (POA) is a common, yet important legal instrument that designates a person to oversee someone’s personal and financial affairs by acting as their agent. POAs are common among elderly people, who become the principal of the POA, and must be of sound mind when executing the POA. It is a way to relieve the stress of handling their affairs by themselves, or to prepare for any future debilitating disorders, such as dementia. The agent is usually a person that the principal trusts to handle their affairs fairly, and with their best interest in mind. If you suspect that an elderly family member was not of sound mind when executing a POA, or if there was any foul play in handling your elderly family member’s financial affairs, you should speak with an investor protection attorney, like the lawyers at Malecki Law in New York.

After Nearly 4 Years of Regulation Best Interest, Broker-Dealer Efforts to Consider Reasonably Available Alternatives for their Retail Clients Remain Lacking

May 24, 2024 | Adam G. Schreck

Regulation Best Interest (Reg BI), which was instituted in June 2020, dramatically changed the relationship between broker-dealers and retail investors. Prior to Reg BI, broker-dealers owed a duty to investors to only recommend securities that the broker-dealer believed to be “suitable” for a particular investor based on such investor’s investment profile. Reg BI was implemented to replace the “suitability” standard and to impart on stockbrokers a duty owed to investors that was more analogous to the fiduciary duties owed to clients of financial advisors. Reg BI is made up of four core obligations, including a Disclosure Obligation, a Care Obligation, a Conflict of Interest Obligation, and a Compliance Obligation. If your stockbroker sold you investments that were not in your best interests or in line with your investment profile, you should contact a knowledgeable Securities Fraud Lawyer, like the lawyers at Malecki Law in New York, to determine whether you have a case.

Within Reg BI’s Care Obligation is a seemingly disregarded requirement on broker-dealers to consider “reasonably available alternatives” (RAAs) when making recommendations to retail customers. This requirement applies to recommendations of investments, account types, and even investment strategies made by a broker to their retail investor client. The RAA requirement is encompassed by a broker-dealer’s obligation to “have a reasonable basis to believe that the recommendation is in the best interest of a particular retail customer based on that retail customer’s investment profile and the risks, rewards, and costs associated with the recommendation…”

For a stockbroker to believe that a particular recommendation is in the best interest of an investor, logically the stockbroker must consider other available products that might be able to achieve the investor’s goals with less risk and/or costs. The SEC has described the RAA requirement as a “key component” in achieving compliance with Reg BI’s Care Obligation. If you have experienced investment losses from products recommended by your stockbroker and your broker failed to consider reasonably available alternatives, you should consult a Regulation Best Interest law firm, like Malecki Law in NYC.

E*Trade’s Platform Was Down While “Meme Stock” Leader “Roaring Kitty” Woke Up

May 13, 2024 | Jacqueline Candella

On May 13, 2024, E*Trade’s trading platform was down at market open, which caused its customers to be unable to sign in, halting their ability to buy or sell securities. Many retail investors took social media by storm about the event. If you were locked out of your online brokerage platform, you should consult an Investor Protection law firm in New York, like Malecki Law.

This may remind you of the GameStop short-squeeze and rise of Reddit investors during the wake of COVID, where a trading freeze ensued.

Keith Gill, who led the Reddit craze in 2021, also known as the “Roaring Kitty,” woke up from his social media nap and made his return by posting a picture on Sunday night of a man seemingly leaning forward in his video game chair, indicating the intent to become re-involved. Mr. Gill made a few other cryptic posts, one of which depicted a movie villain stating, “Fine, I’ll do it myself.”