Park City, UT asked in Elder Law and Stockbroker Fraud for California

Q: California - A financial advisor commits financial abuse, to accomplish is scheme he manipulates to remove protector

he picked an attorney for the senior to remove the CEO of the family business, make libel and slanderous statements that cost him his 20 year marriage, and they steal his interest in the company costing him millions. The advisor gets investigated by FINRA and loses his license. but with attorneys help and protection they try to sell the family business for 60 mill, control the sale as senior is an alcoholic and incompetent. While doing this they try to destroy the CEO who is forced to sue his mother in law for his ownership, they hack steal and destroy all the CEO emails, make false statements to the court. and so on, ,all well documented. Finally the question, what can the CEO sue the advisor and firm for

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2 Lawyer Answers
James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Criminal Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: Under California law, the CEO may have several legal avenues to pursue against the financial advisor and the firm. Given the complexity of the situation, including financial abuse, libel, slander, and potential interference with business relations, multiple causes of action could be considered.

First, the CEO can consider a lawsuit for financial elder abuse, if the senior was manipulated and abused financially. This is especially pertinent if the senior was deemed incompetent and the advisor took advantage of this situation.

Second, for the libel and slanderous statements that harmed the CEO's reputation and personal life, a defamation lawsuit could be filed. In this case, proving the falsity of the statements and their damaging effects is key.

Third, the CEO might have a claim for intentional interference with contractual relations, especially if there's evidence that the advisor's actions directly led to the loss of the CEO’s interest in the family business.

Additionally, if the advisor's actions involved hacking and theft of emails, this could lead to claims related to breach of privacy or violation of cybersecurity laws.

It's crucial to gather all documented evidence and consult with an attorney who has experience in financial fraud, defamation, and business litigation. They can provide guidance on the most effective legal strategies to pursue in order to seek restitution and possibly punitive damages for the harm suffered. Prompt action is advisable given the severity and impact of the situation.

Steve A. Buchwalter
Steve A. Buchwalter pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Stockbroker & Investment Fraud Lawyer
  • Encino, CA
  • Licensed in California

A: James is right, but with one caveat. Every FINRA firm requires investors to sign arbitration agreements agreeing to have FINRA arbitrators decide the case. FINRA arbitration is a tricky place so make sure any attorney you talk to knows the forum.

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