An arbitration panel has awarded more than $34 million to the estate of the co-founder of the Home Shopping Network, finding that bank Morgan Stanley, along with its broker and branch manager, engaged in unauthorized trading, breach of fiduciary duty/ constructive fraud, negligence, negligent supervision and unjust enrichment. Arbitrators additionally concluded the bank violated Florida law against exploitation of vulnerable adults.
These damages involve actions over a three-year period from 2009 to 2012, and involve investments in banking and financial services. At the time, the decedent was alive, but suffering from severe dementia, of which he died in 2012, according to InvestmentNews.com. The bank insists there was evidence the accounts were profitable and were managed in accordance with their client’s wishes, a view clearly not shared by arbitrators. Decedent’s widow stated her primary hope was that the case would spur greater protections for elderly investors.
Good probate litigation attorneys in Fort Lauderdale know that so often, we don’t recognize an elderly loved one is being financially exploited until after the individual dies. Although the aforementioned case is unique in terms of the scope of the exploitation, the circumstances themselves aren’t all that rare, and we’re likely to see quite a bit more cases in the coming years, as the American population ages. Continue reading