Source(s): Financial Planning, Dan Shaw; Think Advisor; SEC. It’s happened again – Charles Schwab in another suit.
Charles Schwab once again is facing elder fraud accusations.
For the third time in two months, Schwab and its affiliates have been accused of doing virtually nothing to prevent scammers from draining its clients' accounts of their retirement savings. The latest case, filed Wednesday in federal district court in Northern California, alleges Schwab stood idly by while bad actors directed an elderly Los Angeles County couple to take nearly $30 million out of their accounts and transfer much of it to a cryptocurrency exchange via Bank of America.
Ultimately, $18.5 million of that was converted into crypto and sent to the scammers, making it likely unrecoverable, according to the suit.
The allegations come just over a month after Schwab was accused in another federal suit of doing too little to prevent bad actors from defrauding a 92-year-old client of roughly $278,000. And on Monday, a Financial Industry Regulatory Authority arbitration panel hit TD Ameritrade, which was acquired by Schwab in 2020, with a $100,000 fine for failing to stop a similar scheme.
In all three cases, the alleged scams had similarities.
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