Increase in Income Tax has Californians moving to Florida

California millionaires are heading across the country to Florida to escape the new increase in taxes. Those who make over $1 million per year will be faced with a 51.9 percent federal-state combined income tax.

At 13.3 percent, California’s state income tax is higher than any other state and the steepest it has been since World War II. Income tax

As a result, many of California’s millionaires are following the trend of celebrities like Tiger Woods and Phil Mickelson and moving to Florida, where there is no personal income tax. For someone who makes $1 million per year, that’s a savings of $133,000 annually!

“What we like to point out to people is that there are states with absolutely no personal income tax,” David Kline, a vice president of the California Taxpayers Association told the New York Times. “So if you moved from California to Florida, and you are in a high-income bracket, you are automatically giving yourself a 13.3 percent raise.”

If you are interested in moving to Florida, Boyer Law Firm can help. Our expertise in business law can help you start a company or foreign qualify your existing company in Florida. We can also help you with residential and commercial purchases and leases.  For more information, contact us today.

*Image courtesy of Stockfreeimages.com

Source: New York Times

 

Short Sales for Non-Delinquent Borrowers in Florida and Across the U.S.

Starting TODAY, for the first time ever, borrowers, in Florida and across the U.S., who have never missed a mortgage payment will be able to short sell their houses if they can demonstrate a hardship, such as loss of employment or the death of a spouse.

This new rule will allow for underwater homeowners to get rid of their mortgage and also take advantage of the Mortgage Forgiveness Debt Relief Act of 2007, which is expected to expire at the end of the year.

Previously, only delinquent borrowers have been eligible for short sales.

There is a downside. The average person suffers a 150 point credit score loss after a short sale. This will be no different for non-delinquent homeowners because there is no special coding that differentiates them from those who went months without paying their mortgages.

Photo courtesy of stockfreeimages.comThe Federal Housing Finance Agency (FHFA) is currently in discussions with the credit industry to determine if and how this new law will affect credit scoring, but no solution has been found as of yet.

If you are considering a short sale, you should consult an attorney to discuss your options. There are many things changing in the housing market, and it is important to have all of the facts before making a decision.

Source: Inman News

EB-5 Program Allows Residency for Foreign Investors

The EB-5 Immigrant Investor program, enacted in 1990, is a way for foreign investors to help boost the American economy and, in the process, gain residency in Florida or in other states across the U.S.

Foreign investors can obtain an EB-5 visa if they invest $1,000,000, or $500,000 in high unemployment areas, that leads to the creation or preservation of at least 10 jobs. These investors and their families receive a two year visa that allows them to live and work in the U.S., and if the investment is successful, they can eventually receive permanent U.S. residency.

Jupiter, FL, has used this program to construct an outdoor amphitheater, marina slips, and an entertainment hub,  San Bernardino, CA, has used it to redevelop its downtown theatre district, Jay, Vermont used it to help finance luxury condos, an ice hockey rink, and a waterpark at its popular Jay Peak Resort, and Philadelphia has used the program to expand a hospital complex and improve a school for disabled children.

Along with the benefits of the program, there are also risks. Some investors have failed to maintain or create theImage courtesy of StockFreeImages.com required jobs, or failed to otherwise comply with the program, and faced deportation. Others have lost their investment, but have still secured their green cards.

Despite the risks, many foreign investors are still taking the chance. The EB-5 program is one of the fastest ways for wealthy foreign investors who lack the family ties or special skill required for a traditional U.S. visa to establish a permanent U.S. residency.

Sources: LA Times, WCAX.com

What is a Trust and Why it is Important?

A trust is an arrangement wherein one person (the trustee) manages and holds legal title to property owned by another (the settlor or grantor) for the benefit of a third party or parties (the beneficiary).

There are many different kinds of trusts, such as a testamentary trust which is a trust created by a person’s will and that takes effect after his or her death. One of the reasons a person may want to create a testamentary trust is that it permits him or her to control how trust property is given to the beneficiary.

There are other types of trusts that may be beneficial to your situation that is why it is important to speak to your attorney regarding these matters. Please contact us if you are interested in setting up a will or trust for your future needs.

Auto insurance fraud ring busted in Miami

This article is from the The Miami Herald. It underlines why we pay so much in car insurance. Based on other indicators and study, about 10 to 15% of the car insurance premiums paid by Floridians are marked up to compensate for fraudulent payments.

“When the owner of a West Miami-Dade medical clinic schemed to bill insurance companies for staged auto accidents, she did not know that an undercover witness was secretly recording her, authorities say.

“Bring me good stuff,” Elsa Terrero, of New Horizon Practice, told a cooperating witness, according to an arrest warrant released Wednesday. “I control all the clinics in this building … you will get paid.”

Terrero was one of 25 people — including three doctors — charged Wednesday in a crackdown on “personal injury protection” fraud in Miami-Dade that officials say costs insurances companies millions of dollars each year, and ultimately raises rates for consumers. Terrero’s scam cost insurance companies nearly $800,000, though the amount is likely much more, officials said.

This is not a clinic. This is a fraud mill,” Florida’s Chief Financial Officer Jeff Atwater said at a press conference Wednesday.

Many people see the insurance fraud as a victimless crime. It is not,” said Miami-Dade State Attorney Katherine Fernandez Rundle.

The ring was cracked by detectives from the state’s Department of Financial Services fraud division, and Miami-Dade prosecutors. PIP insurance pays for up to $10,000 in medical bills and lost wages, and Florida ranks as one of the top states in the country for staged auto accident fraud.

Terrero, 40, is charged with racketeering, grand theft, organized scheme to defraud and a slew of other felonies. The others face similar charges.

The undercover investigation began in November 2009 when a man named Martin Triana, secretly working with detectives, agreed to stage an auto accident at a red light in Liberty City, according to an arrest warrant.

Triana later went to the clinic, 7171 Coral Way, where he signed 25 blank therapy forms, which would later be submitted to insurance companies, and was later X-rayed by an unlicensed technician. Later visits resulted in no treatment, the warrant said.

The clinic later billed State Farm insurance for 40 therapy sessions. The clinic also billed the company for three visits with Dr. Gerald Amado, who never examined Triana; the doctor was arrested Wednesday.

Triana later recruited a man named Miguel Hernandez, who was actually an undercover detective using a fake identity. Hernandez played along in another bogus accident, the warrant said, and the result was that clinic billed Imperial Fire & Casualty Insurance Company for $20,225.24.

Trial begins in Submarines for Dubai

An interesting article that underlines the weight of Florida in maritime matters. In this article, a former naval officer in the French Navy moved to the United States, and was recruited by a Dubai company to build submarines. The story that follows is more James Bond-type than regular contract dispute….

By CURT ANDERSON , 02.14.11,  http://www.forbes.com/feeds/ap/2011/02/14/general-us-submarines-for-sultans_8308354.html

FORT PIERCE, Fla. — Trial began Monday in a dispute between a former French intelligence officer who started a recreational submarine business and a powerful Dubai conglomerate over their failed venture to build and sell the exotic undersea vessels around the world.

The competing lawsuits filed in Florida federal court by Dubai World and the spy-turned-sub builder, Herve Jaubert, came after Jaubert fled Dubai in early 2008. He claims his escape included disguising himself as a Muslim woman in a head-to-toe burka and using his diving skills to disable a patrol boat.

Dubai World, however, contends that Jaubert is no more than a sophisticated con man who misrepresented his ability to design and build submarines, overcharged the company for parts and didn’t live up to their contract. Dubai World contends it lost $31 million, including construction of an 80,000-square-foot factory to build the subs.

The company’s attorney said in an opening statement that Jaubert is “a self-described master manipulator” who made more than $5 million in salary and benefits through a series of financial schemes that ripped off Dubai World. The submarines never worked as promised, he added.

“Not a single product was ever sold. Not a single penny of revenue was received.”

Jaubert, meanwhile, claims he was held as a virtual captive in Dubai after authorities confiscated his passport in 2007 as their business dispute escalated. He contends he was threatened with torture and jail unless he paid the company about $1 million – money Jaubert felt he did not owe.

Jaubert’s attorney said the submarines did operate as promised and that top Dubai World executives even had a plan for lavish floating homes that would be accessible by their own subs, each to be built by Jaubert’s operation. Hess insisted that Jaubert was highly qualified and had sold at least four workable submarines in the past.

“He wanted to bring his submarines to the people. He wanted to bring the person to the underwater experience,” Hess said, adding that Jaubert committed no fraud. “He was about, and is about, building submarines. He’s not a finance guy.”

Each side seeks unspecified damages from the other. The trial before U.S. District Judge Jose E. Martinez is expected to take about two weeks.

Jaubert described his Dubai experience in a recent book “Escape From Dubai,” in which he claims he used the Muslim clothing to move about undetected once he decided to flee. He said he used scuba gear to disable a patrol boat by cutting fuel lines, then motored into the ocean in a rubber dinghy to meet a waiting a sailboat.

Jaubert said he sailed first to India and then returned to Florida, where he filed suit against Dubai World. The company then filed a countersuit. Key parts of Jaubert’s suit have been dismissed, including his contention that Dubai World defamed him in public statements.

According to court papers, Jaubert spent 10 years as a French naval officer involved in covert operations, especially building surveillance devices. He trained as a combat diver and submarine pilot, using the latter skill after retiring from the military to begin a submarine charter business in 1996 in Puerto Rico.

Jaubert subsequently moved to Stuart, Fla., and started Seahorse Submarines. In 2003, Dubai World executives approached him about moving to Dubai, a part of the United Arab Emirates, to build submarines for the world’s super-wealthy and the charter tour industry. Dubai World handles a broad range of businesses and investments for Dubai’s government.

“I saw it as an opportunity to mass produce recreational submarines worldwide,” he said in a 2009 interview.

South Florida: Coldest in 115 Years

“Floridians, who giddily track winter weather reports from the North, woke up Monday prepared to revel in their snow-free sidewalks and high-Fahrenheit fortunes. Another meteorological bullet dodged, chirped the snowbirds.

Then they opened their front doors to a comeuppance: a bone-chilling blast in the 30s, from Fort Lauderdale to Jacksonville, that has become the new and depressing norm here this December.”

This is true, I even had to turn on the heater. It was 35 degrees at 10:30 this morning.

““It’s shocking, actually,” said Dorothy Lee, 51, as she crossed a windswept street, weighed down by three layers of shirts, a coat, a hat and gloves. “And don’t forget the stockings on my legs,” she added, grimacing. “This is not why people move to Florida.””

Miami is experiencing its coldest December in 115 years, according to the local branch of the National Weather Service, where employees have exhausted their thesauruses trying to describe the anomaly. (One of them, Dan Gregoria, settled on this: “very rare.”)

This time of year, the temperature in Miami usually reaches 77. On Monday, the mercury stopped 20 degrees below that, at 57, and it felt even frostier with the wind chill factored in.”

Read more from the New York Times.

Short Sales leave margin for Fraud in Florida

No kidding? Is there ANY type of fraud that does not occur in here? Here is another good article published in The Miami Herald about fraud in the short sale process.

A recent report shows a new kind of mortgage fraud will likely grow as short sales become a part of the Florida real estate landscape.

BY KIMBERLY MILLER

PALM BEACH POST

A national financial consulting firm has warned that the real estate market is increasingly vulnerable to a new kind of mortgage fraud based on manipulating short sales.

According to a study released by the Santa Ana, Calif.-based company CoreLogic, short sale scams are likely to increase nationally as a new federal foreclosure prevention program to speed such transactions gathers steam and home values remain low.

The report, released last month, estimates fraud already occurs on 2 percent of all short sales nationally, costing banks as much as $310 million annually.

A short sale is when a bank agrees to accept a sales price on a home lower than what the owner owes on the loan, usually because the borrower cannot afford the payment and is headed for foreclosure.

RIPE FOR FRAUD While the types of short sale fraud outlined in the report vary, they generally depend on an agent submitting an artificially low bid from an investor to the bank. The bank unwittingly accepts the price, then the investor flips the property — sometimes the same day — selling it for the higher true resale value.

Florida is second only to California in the number of short sales nationally. In 2009, CoreLogic recorded 27,907 short sales in Florida, more than double the number in 2008.

And with 44 percent of South Florida single-family homes with mortgages underwater — slang for owing more on a loan than the home is worth — it’s likely short sales will be a big part of the local real estate landscape for some time to come.

“There are so many properties, the banks don’t know what they are really worth,” said Jupiter-area Realtor and short sale specialist Skip Yachanin, who is with Keller Williams Realty.

Yachanin said he hasn’t witnessed short sale fraud, but doesn’t doubt it’s happening.

“The Realtor gets a commission and doesn’t feel like they have a duty to the bank to get it the best price,” Yachanin said. “There is a lot of room for fraud.”

In April, the federal government’s Home Affordable Foreclosure Alternative program went into affect, offering monetary incentives to lenders and home owners to complete a short sale. Under the voluntary program, a successful short sale can net the borrower $3,000 for relocation expenses, while a servicer can get up to $1,500. A lender is eligible for up to $2,000.

The plan also requires the bank to agree on a set price for the short sale on the front end, and then respond to any offer within 10 days.

“As the government has pressured us to do short sales faster, we don’t have time to check them out,” said Anthony DiMarco, executive vice president for government affairs for the Florida Bankers Association. “The bad guys know how to defraud the system and will rush in to do it.”

BAD APPLES

Jared Dalto, a Realtor with Palm Beach Gardens-based Seawinds Realty, said he’s seen prices on short sales that were notably lower than those on neighboring properties, an indication that an artificially low bid was accepted. While the homes may have had damage that would justify a lower price, he said there is “shadiness out there.”

Dalto, who specializes in short sales, said one way to avoid fraud is for the bank to get a traditional appraisal instead of relying on a Broker Price Opinion, or BPO.

A BPO is conducted by a Realtor and typically costs hundreds of dollars less than an appraisal. The risk of a BPO exists if the Realtor purposefully undervalues the property so that someone can purchase it at the lower price and then flip it. “There are agents and brokers out there who do things the right way, and then, just like any profession, there are bad apples,” Dalto said.

Read more: http://www.miamiherald.com/2010/09/17/1828717/short-sales-leave-margin-for-fraud.html#ixzz0zlJKy4F3

Nearly 25% of all Foreign Buyers choose Florida

I knew it…Here is more proof. Florida remains the dream place for many foreigners, and not only Latin Americans….

BY KIMBERLY MILLER

PALM BEACH POST

International buyers have helped buttress Florida’s real estate market with 22 percent of all foreign clients nationally choosing property in the Sunshine State.

That makes Florida tops for attracting foreign interest, according to a summer report by the National Association of Realtors. California came in a far second with 12 percent of the international market.

While Florida’s share of foreign clients has slipped from a recent high of more than 26 percent in 2008, bargain basement prices and a weakened dollar have continued to lure Canadian and overseas buyers.

The study, which looked at sales between March 2009 and March 2010, found that buyers with permanent residences outside the United States spent an estimated $41 billion on residential property nationally during the period of the study — that’s 4 percent of the total residential market during the same time.

“I had an open house in the mid-$500,000s and a man from Canada came and bought it the same day,” said Palm Beach Gardens Realtor Jeff Lichtenstein, who has a page on his website dedicated to foreign buyers. “Once they’re here, they tend to bring friends.”

And family.

Amsterdam native Annette Aalberts bought two Jupiter homes for herself and her daughter over the past few years. Combined, the homes are worth about $4.5 million.

But most international buyers don’t aim that high. According to the study, the median price paid by foreign buyers nationally is $219,400.

Statewide statistics gathered by the national association showed 31 percent of Florida’s international buyers are Canadian, compared to 24 percent nationally.

Nationally, about 55 percent of foreign buyers pay with cash, possibly because it can be harder for international clients to get financing here. In Florida, about 82 percent of international buyers paid in cash.

Ignacio Recondo, a realty associate with Fortune International and a native of Argentina, has sold a handful of condos recently to international buyers, many of them from Argentina.

“A lot of the Europeans from Italy, Spain — they like Miami,” he said. “They want to have a piece of it.”

Recondo recently sold a 1-bedroom condo at the ICON Brickell to a buyer for Argentina for $303,000. The buyer plans to rent out the unit in order to generate income, Recondo said, highlighting the sale as an example of an international buyer being drawn to the relative stability of the U.S. economy, and the potential for strong returns available in South Florida.

“International buyers are hugely important in absorbing inventory,” said Jenny Huertas, international sales director for the Miami-based consultant firm Condo Vultures.

Huertas estimates 30 percent of sales in Palm Beach, Broward and Miami-Dade counties are to international buyers.

It’s unclear how a recent dip in the euro may temper overseas purchases. It’s now worth $1.28, compared with a high of $1.60 in 2008. That means to buy a $500,000 house, it would cost about 388,709 euros.

But the Canadian dollar, which has traditionally been weaker than U.S. currency, is now near parity at 95 cents.

Toronto resident Domenic Triumbari bought two properties in the Palm Beach Grande condominium complex in March. The suburban West Palm Beach homes sold for $164,990 and $179,990 in 2006.

Triumbari picked them up for $60,000 each, paying in cash, and without ever seeing them in person.

“I know they’re in West Palm Beach, but not exactly sure where,” said Triumbari, who is renting the homes. “The numbers make sense right now. You can make money on your investment.”

Triumbari is also searching for a South Florida home for himself. “I’ve seen a lot of the Caribbean, been all over the islands, but I like Florida,” he said. “We speak the same language, eat the same foods.”

Read more:http://www.miamiherald.com/2010/09/11/1818622/study-nearly-a-quarter-of-all.html#ixzz0zlIoKiz4

Foreign Students and Fake Schools

Here is a typical exemple of fraud occurring with some “schools”….

Aussie Air at Fort Lauderdale Executive airport didn’t have federal certification.

Adrian Garcia, a 20-year-old from Spain, knew he wanted to be a pilot by the time he turned 9. After high school, he began working at a small airport in his native country and soon was searching online for a flight school.

He picked Aussie Air, an aviation school in Fort Lauderdale, because its tuition was relatively low and it promised to get him into a pilot’s seat quickly. When the school agreed to drop the price from about $45,000 to $25,000, Garcia said he borrowed money to pay.

Eight months after he arrived in South Florida, Aussie Air closed. Garcia and 12 other foreign students, who had lived in the school’s rented building at Fort Lauderdale Executive Airport while enrolled, were evicted by the landlord in March.

By that time students had learned the school’s owner had incorporated or advertised similar aviation academies under different names over the past six years in Florida. None of the schools were accredited through the Federal Aviation Administration, federal records show, although Aussie Air had filed a pre-application in 2009 stating it would seek FAA certification.

Federal regulations allow pilot schools to operate without FAA certification, but they must employ FAA-certificated instructors. Only those instructors can train foreign students; some students in Colombia and Spain said they met with Aussie Air recruiters in their home countries. It’s not known if Aussie Air’s teachers had FAA certificates.

Students said the man who told them he was the school’s owner went by several names, signing their contracts both as Luis Vargas and Luis Vargas Martinez. Students had three cell phone numbers for Martinez; all have been disconnected or are not working. No one responded to emails sent to Aussie Air.

The Accrediting Commission of Career Schools and Colleges, an independent organization that examines vocational and training programs nationwide, requires aviation academies that want its certificiation to have have FAA-approved curricula and instructor pilots, said commission executive director Michale McComis.

“I would advocate for students to really ask questions about appropriate certifications,” McComis said.

FAA spokeswoman Kathleen Bergen said foreign students make up a large portion of the flight students in Florida.

The FAA does not regulate the business side of flight schools, which means it can do nothing for students who lose tuition deposits or don’t receive what they have been promised.

County consumer affairs offices take complaints about vocational and trade training facilities, including those involving aviation. Officials in Broward and Palm Beach counties, however, said they have not received any recently regarding flight schools.

FATAL CRASH

It also can be difficult for prospective students to figure out a school’s safety track record. The National Transportation Safety Board keeps statistics on aviation accidents but does not have a separate category for flight schools. That means there is no easy way to see if a training facility has been involved in a crash.

The board has a 2006 report on a fatal accident involving a Beech BE-76 Duchess, operated by Aussie Air. According to the document, a student and a 25-year-old flight instructor were on an instrument training flight when the plane’s engines failed, and the plane plummeted to the ground, killing both instructor and student.

The report said the plane was 25 hours past due for its next 100-hour inspection.

Aussie Air Holdings started in Daytona Beach in 2004, according to state incorporation records. Two of the officers listed in company documents, filed with the state, were Luis Vargas Baquero and Luis Vargas Martinez. Over the next six years, state records show Baquero and Martinez, either together or separately, were involved in incorporating three other flight schools.

Records for two of those schools — FXE Flight Center and Fly Now Express — list the same Fort Lauderdale address as Aussie Air. Fly Now remains registered as an active corporation at 5302 NW 21st Ter., the 20,000-square-foot building where Garcia and his fellow students temporarily lived. Garcia has returned to Spain.

The flight school leased it in 2009 from Sheltair, which is suing Aussie Air and its principals. Jonathan Prosper, a Sheltair representative, said the school stopped paying rent in October and still owes $40,000 to Sheltair.

WHAT TO WATCH FOR

Officials with the FAA said aspiring pilots should thoroughly investigate flight academies before enrolling or paying money. If the price is considerably lower than other schools, there might be something wrong since most schools have similar prices, they said. Revise and sign contracts in person and don’t make bank deposits in advance. Making the wrong choice could mean wasting time and money.

Read more: http://www.miamiherald.com/2010/09/11/1818617/foreign-students-grounded-when.html#ixzz0zlIdmaKE

South Florida Home Prices up in May

Standard & Poor’s 20-city housing index released Tuesday showed South Florida home prices improved in May, the first month-over-month increase since September.

Home prices in Miami-Dade, Broward and Palm Beach counties increased 0.9 percent from April to May. For the year, South Florida home prices were up 1.2 percent in May, after being down 0.5 percent in April.

The index, which tracks repeat sales of existing homes and does not include condos, showed average home prices across the United States are back to the levels they were at in 2003.

The national index rose by 1.3 percent between April and May, with 19 of the 20 cities showing month-over-month price increases. Nationally, prices are up 4.6 percent since May 2009 for the largest 20 cities. Las Vegas was the only city to post a month-to-month decline in May, with prices shedding 0.5 percent.

Read more: http://www.miamiherald.com/2010/07/27/v-print/1748476/south-florida-home-prices-up-in.html#ixzz0uw99B9IQ

Retirees Targeted by Elderly Scammers

Since the economic crisis started, many financial and business deals that seemed legitimate surfaced as being fraudulent enterprises in the first place, or became fraudulent as the managers of investments decided to pocket the money themselves. One general explanation is the drying up of liquidities and additional investments coupled with the demands of previous investors to be cashed out.Although I take issues with the title, here is an article from Bloomberg:

Scams: A Sucker Retires Every Minute

More retirees are being targeted by financial fraudsters. Often, these scammers are themselves elderly.

Annuities.

Reverse mortgages.

Life insurance pools.

Principal-protected notes.

The options being offered to senior citizens hoping to ensure a comfortable retirement are dizzying. And in a growing number of cases, that may be the intention as more scammers–often elderly themselves–try to con retirees. Though hard numbers are difficult to come by, many lawyers and advocates for the elderly say more seniors than ever are being lured into investment schemes that are unsuitable for people of their age or are outright swindles. “Seniors who suffer from isolation and diminished capacity make ideal targets,” says Steve Riess, a San Francisco attorney who represents elderly victims of con artists peddling bogus investments.

 

One out of five Americans over the age of 65 has been the victim of a financial scam, according to the Washington-based Investor Protection Trust, a nonprofit that promotes shareholder education.

 

 

Many of today’s scammers have a particularly good understanding of their victims–because the fraudsters themselves are of retirement age, if not exactly retired.

 

  • William Kirshner, 84, a financial adviser in Corpus Christi, Tex., was sentenced to five years in prison for stealing more than $100,000 from senior citizens and other clients who invested in promissory notes issued by his company.
  • Ronald Keith Owens, 74, was sentenced to 60 years in prison in January 2009 for persuading investors, including retirees, to put more than $2.6 million into nonexistent bank-related investments.
  • William Walter Spencer, 68, a Franklin (Tenn.) financial adviser, sold elderly members of his church promissory notes that turned out to be bogus. He pleaded guilty to fraud in May and is expected to be sentenced in August.

Veterans are a big target. Several groups offer to help former soldiers sign up for a $2,000-a-month benefit from the Veterans Affairs Dept. in Washington. While the program is real, some groups are telling seniors they can only qualify if they liquidate their assets and purchase an annuity, which usually comes with a hefty sales commission.

Reverse mortgages, which let people aged 62 and older get cash out of their homes and are repaid when the borrower dies or moves, are a big part of many scams.

One popular ruse is urging the elderly to finance annuity purchases with a reverse mortgage, despite a ban on cross-selling them with other financial products.

Other unsuitable investments being pushed on seniors are pools of life insurance policies, similar to the bundles of home mortgages that helped fuel the financial crisis. Some of these have turned out to include policies that don’t exist, and it’s unclear whether they’re supposed to be overseen by state insurance regulators or the Securities & Exchange Commission.

Principal-protected notes are another investment being pushed on the elderly, says John Gannon of the Financial Industry Regulatory Authority in Washington. He says seniors fall for these because the name makes it sound as if they’re risk-free; in fact the principal isn’t always protected, as holders of notes backed by Lehman Brothers learned when the firm collapsed.

Financial professionals, both legitimate and illegitimate, know there are assets seniors have that they can get their hands on,” Gannon says. “They’ve figured out ways to get to all of them.”

 

 

The bottom line: More retirees than ever are being targeted by financial swindlers, many of whom are themselves elderly.



 

If you have been victimized by fraud, or have doubts as to whether you are or were defrauded, please email a Florida attorney.