Broker-dealer sales practices to seniors focus of Massachusetts sweep

Senior investors are the focus of a new broker-dealer survey in Massachusetts aimed at learning more about sales practices to the elderly, according to a news release Wednesday from Secretary of the Commonwealth William F. Galvin. The survey, issued by the Massachusetts Securities Division, will look at the frequency of complaints from elderly investors and how firms respond with their own business practices, in an attempt to determine if senior financial abuse is on the rise and what actions companies should take to resolve any problematic issues. The survey, which will cover the last two years, was sent to 162 broker-dealers in the state. Aside from asking about the number and types of complaints by investors age 65 and older, questions include whether senior investors' transactions are subject to heightened oversight and what, if any, policies or procedures are in place specifically for aging customers. The surveys are expected back by Aug. 29. In June, Mr. Galvin filed a complaint against a Boston investment firm, Cabot Investment Properties, charging the firm with fraudulent sales of real estate investments to senior citizens. According to the complaint, Massachusetts residents looking for a means of retirement income invested more than $5 million in eight of the tenancy-in-common investments offered by the firm, which were considered fraudulent. The defendants were also charged with siphoning $9 million into their personal bank accounts.