Kevin MurphyFlorida has become ground zero for investment fraud targeting retirees, with the state ranking second nationwide in elder financial fraud complaints. The Sunshine State’s large retiree population and concentration of wealth have created a perfect storm for unethical stockbrokers and financial advisors who prey on vulnerable seniors.
Recent enforcement actions reveal the devastating scope of professional misconduct in Florida. In February 2025, five defendants were convicted for defrauding elderly retired Florida school district employees of over $1 million from their 401(k) accounts, highlighting how even supposedly secure retirement funds aren’t safe from sophisticated schemes.
Why Florida Retirees Are Prime Targets
Florida’s unique demographics make it especially vulnerable to stockbroker and advisor misconduct. With nearly 4.6 million residents over 65, the state hosts one of the nation’s largest concentrations of retirees with substantial savings.
Many Florida retirees have relocated from other states, leaving behind familiar advisors and support networks. This isolation makes them more susceptible to fraudulent brokers who exploit their vulnerability through affinity fraud and high-pressure sales tactics.
The FBI and Sarasota County Sheriff’s Office have seen an uptick in complaints from senior citizens falling victim to well-orchestrated cash and gold bar schemes. These aren’t just internet scams—they involve licensed professionals abusing positions of trust.
“Florida retirees face unique challenges when dealing with stockbroker fraud,” explains Robert Wayne Pearce, an award-winning investment fraud lawyers with offices in Florida and throughout the country. “Many victims have transferred their entire life savings to Florida, making them attractive targets for unscrupulous brokers who know these retirees can’t afford to lose their nest eggs and may be too embarrassed to report losses.”
Florida’s Legal Protections Against Broker Misconduct
Recognizing the crisis, Florida has enacted some of the nation’s strongest elder protection laws. Florida Statute 825.103, entitled “Exploitation of an elderly person or disabled adult,” provides specific protections for seniors against financial exploitation.
The statute extends to investment advisors and broker-dealers who violate their duties to elderly clients. Even if a broker claims ignorance of a client’s age, they can still face liability under Florida law.
Recently, Florida adopted the Protection of Specified Adults Statute, which takes effect January 1, 2025, requiring financial institutions to play an active role in preventing elder abuse. This law allows banks and brokerages to place temporary holds on suspicious transactions involving vulnerable adults.
Common Broker Misconduct Schemes in Florida
Florida retirees face several types of stockbroker fraud that can devastate retirement portfolios. Understanding these schemes is crucial for protection.
Churning in Retirement Accounts: Brokers generate excessive trades in retiree accounts solely to increase commissions. This is particularly harmful for seniors who need stable income, not risky trading strategies.
Unsuitable High-Risk Investments: Florida brokers often push complex products like structured notes or volatile penny stocks to retirees who need conservative investments. These products generate high commissions but can wipe out retirement savings.
Precious Metals Scams: The CFTC has brought numerous cases against fraudulent precious metals dealers in Florida who collectively sold over $500 million of overpriced metals to victims. Brokers promote gold and silver IRAs with massive markups that make profit impossible.
Real Estate Investment Fraud: Florida’s hot real estate market attracts schemes targeting retirees. In May 2025, the SEC charged Kenneth Mattson with defrauding elderly investors through fake real estate partnerships, primarily targeting church members.
Unauthorized Trading: Some Florida brokers make trades without permission, counting on retirees not closely monitoring accounts. They may claim verbal authorization that never occurred.
Affinity Fraud Through Communities: Fraudulent advisors infiltrate Florida’s retirement communities, churches, and golf clubs. They leverage shared backgrounds to build trust before recommending unsuitable investments.
Red Flags Florida Retirees Should Watch For
Protect yourself by recognizing these warning signs of broker misconduct specific to Florida retirees.
Your monthly statements show activity you don’t recognize or understand. The trading seems excessive for someone in retirement who needs income, not speculation.
Your broker pressures you to invest in Florida real estate deals or local businesses. While some may be legitimate, many are vehicles for fraud targeting state residents.
You’re encouraged to move money from traditional IRAs to self-directed accounts. Fraudsters often target self-directed IRA holders because these accounts allow broader investments and withdrawal penalties discourage monitoring.
Your advisor becomes evasive when you ask about fees or performance. They may claim Florida-specific tax advantages that don’t actually exist.
Taking Action Through FINRA Arbitration
If you suspect stockbroker misconduct, Florida investors have powerful remedies available. Most disputes must go through FINRA arbitration rather than court due to mandatory arbitration clauses in brokerage agreements.
FINRA arbitration provides an efficient forum for recovering losses from broker fraud. Florida has experienced securities arbitration lawyers who understand FINRA procedures and have recovered over $200 million for defrauded investors.
Time is critical—FINRA has strict statutes of limitations, typically six years from the misconduct. Document everything and consult a securities attorney immediately if you suspect fraud.
Florida investors can also file complaints with the Florida Office of Financial Regulation, which oversees state-chartered financial institutions. The office works with federal regulators to investigate broker misconduct.
Protecting Your Florida Retirement
Take these concrete steps to safeguard your retirement savings from unethical Florida brokers and advisors.
Verify Credentials: Check any broker’s background through FINRA’s BrokerCheck before investing. Look specifically for complaints from other Florida investors or regulatory actions in the state.
Understand Florida Law: Familiarize yourself with Florida’s elder protection statutes. Know that state law provides additional protections beyond federal securities regulations.
Stay Connected: Join local investor education groups or AARP chapters. The U.S. Attorney’s Office for the Southern District of Florida regularly hosts elder fraud prevention forums at retirement communities.
Document Everything: Keep detailed records of all broker communications and transactions. Florida’s strong elder protection laws work best with good documentation.
Report Suspicious Activity: Contact the National Elder Fraud Hotline at 1-833-FRAUD-11 immediately if you suspect fraud. Early reporting can prevent further losses and help authorities stop ongoing schemes.
Florida’s retirees deserve to enjoy their golden years without fear of financial exploitation. By understanding the unique risks in the Sunshine State and taking advantage of strong legal protections, you can protect your hard-earned savings from those who would abuse their professional positions.
Kevin Murphy