Lisa A. Catalano and Christine Lazaro
Abstract:
This paper discusses the ever-increasing importance of heightened protection in the USA both at the federal and state levels for seniors from abuses in the financial services industry as vast numbers of Americans begin to retire. The paper examines action taken by the Securities and Exchange Commission and the Financial Industry Regulatory Authority, including directives to firms and disciplinary actions. The paper also details legislative activity of the federal and state governments, as well as civil remedies available to elderly victims of financial abuse. The paper concludes that consistency in rules affording greater protection to seniors, both at the federal and state levels, is required.
Keywords:
senior investors, suitability rule, ‘free lunch’ seminars, Investor Fraud Study, Model Rule on Senior Designations, Senior Summit, Elder Financial Abuse Statutes, best practices
Lisa A. Catalano is an assistant professor at St John’s University School of Law and Director of the Securities Arbitration Clinic, supervising students representing investors in arbitration claims against broker-dealers and brokers. Previously, she was a senior partner at Davidson & Grannum, LLP, specialising primarily in broker-dealer arbitrations, mediations and litigation. She also spent five years at UBS Financial Services Inc. and was a Corporate Vice-President and Assistant General Counsel, defending securities arbitration claims brought by the firm’s customers.
Christine Lazar is a supervising attorney at St John’s University School of Law, supervising students representing investors in arbitration claims against broker-dealers and brokers. Prior to joining St John’s she was an associate at Davidson & Grannum, LLP, representing broker-dealers and individual brokers in disputes with clients in both arbitration and mediation, and handling employment law cases and debt collection cases. She was the lead attorney in advising broker-dealers regarding investment contracts they had with various municipalities and government entities.