|
The program will teach lawyers how to spot signs
of cognitive impairment, identify possible cases of investment
exploitation and report these suspected instances to the
appropriate authorities.
Sponsored by the ABA along with the Investor Protection Trust
and the Investor Protection Institute, two nonprofit
organizations devoted to investor education and protection, the
new program is called the Elder Investment Fraud and Financial
Exploitation Prevention Program Legal.
Roughly one in five older Americans has been victimized by
financial scams which cost them some $2.9 billion a year,
according to studies from the Investor Protection Trust and
MetLife Inc. Dementia caused by old age and other types of brain
damage can make people more vulnerable to financial
exploitation.
"Our goal is to improve the communication among legal
professionals, older Americans, adult children and state
securities regulators in order to head off financial swindles
before the damage is done," Don Blandin, president and chief
executive of IPT, said in a press release announcing the
program.
Attorneys may not realize that they can get into trouble
themselves if they don't recognize the signs of a scam, said
Lori Stiegel, project director at the ABA.
"A lawyer who is ignorant of (elder investment fraud and
financial exploitation) and fails to recognize its signs may
unwittingly participate in victimizing the client... and as a
result may face professional discipline and liability for
malpractice," Stiegel said in the release.
When the three groups surveyed 674 practicing attorneys it found
91.4 percent considered elder financial fraud to be a "very
serious" or "somewhat serious" problem, and 88.6 percent said
they would participate in a program designed to prevent this
exploitation.
Other organizations plan to create resources to help financial
professionals diagnose mental acuity in their clients. The North
American Securities Administrators Association is developing
guidelines for how brokerages can protect vulnerable clients.
The Securities Industry and Financial Markets Association is
also pushing for similar changes.
(Reporting By Michael Leibel; Editing by Cynthia Osterman)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
