CORAL SPRINGS, Fla., Oct. 25, 2024 /PRNewswire/ — Silver Miller, experienced with fighting financial fraud in a digital age, has filed an explosive new lawsuit in California federal court against Charles Schwab, Bank of America, and cryptocurrency exchange Unchained Trading. In the case, Silver Miller represents a married senior citizen couple ensnared in a $30 million investment account fraud, wire fraud, and cryptocurrency fraud scheme wrapped into one, where financial professionals and institutions with actual knowledge of events utilizing artificial intelligence and transaction monitoring allegedly failed to protect their clients from an obvious scam.
As set forth in the lawsuit, a threat actor utilizing astonishingly accurate confidential information reserved for insiders at Charles Schwab informed the clients that their Charles Schwab investment accounts had been compromised and that all of their assets had to be temporarily liquidated, transferred to bank accounts, and then converted into cryptocurrency at Unchained, which was purported to be a safe haven for our clients assets while the account compromise at Charles Schwab was resolved. At several steps along that path, the lawsuit alleges, Charles Schwab, Bank of America, and Unchained were faced with actual, clear, and unmistakable evidence that the couple were the victims of a brutal and sophisticated financial scam that called for heightened scrutiny and halted forward momentum. The institutions, however, failed to enforce key Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols mandated by the Bank Secrecy Act, thereby aiding the fraudulent transfer of the couple’s life savings.
Equally troubling is that the lawsuit explains Charles Schwab was responsible for an August 2023 customer data breach that exposed confidential customer information and electronic files, including Social Security numbers, financial account information, and other sensitive customer data, which Schwab itself conceded increased the risk of identity theft and other fraudulent activities such as those which were inflicted upon the plaintiffs in the lawsuit. The lawsuit alleges that, despite known and actual red flags of elder financial abuse and identity theft, Charles Schwab, Bank of America, and Unchained Trading did not act on the suspicious activities taking place in the couple’s accounts. Instead, these institutions allegedly attempted to upsell these senior citizens on additional fee-generating services predicated on the companies’ actual knowledge of exploitative behavior in the victims’ accounts that should have triggered protective measures instead of additional exploitative behavior.
This case sheds light on the broader issue of financial institutions neglecting their duty to safeguard senior citizens from exploitation. Elder abuse cases like this highlight a troubling pattern where trusted institutions allow fraud to occur under their watch, prioritizing profit over protection.
Silver Miller continues its mission to advocate for elder victims of financial abuse, seeking justice for these clients and others who have been similarly harmed.
Senior citizens who have fallen victim to financial fraud and wish to discuss how their financial institutions may have contributed to the harm can reach out to David Silver at DSilver@SilverMillerLaw.com or call (954) 516-6000. Silver Miller is actively investigating multiple cases of elder financial exploitation involving banks, brokerage firms, and investment exchanges.
Contact Information: David C. Silver
Silver Miller – Managing Partner
Florida: 954-516-6000
Maryland: 240-516-6000
Washington, D.C.: 202-852-6000
E-Mail: DSilver@SilverMillerLaw.com
Website: www.SilverMillerLaw.com
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SOURCE Silver Miller
