No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 25, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Financial Planning

JPMorgan must go before arb panel for fraud case

by TheAdviserMagazine
2 months ago
in Financial Planning
Reading Time: 3 mins read
A A
JPMorgan must go before arb panel for fraud case
Share on FacebookShare on TwitterShare on LInkedIn



JPMorgan has lost an attempt to stop an 85-year-old widow from pursuing claims in arbitration that the company failed to prevent her son from siphoning more than $8 million from her bank accounts.

The widow, Susan Kraus, filed a claim in October to the Financial Industry Regulatory Authority against JPMorgan and several other financial institutions seeking to recover the millions of dollars that her son, Brett Graham, had taken from her accounts following her husband’s death in 2017.

FINRA found under its bylaws that the claims should be heard behind closed doors in arbitration. JPMorgan subsequently sued Kraus in federal court in New York seeking to stop the proceedings. The bank argued that Kraus was never technically a customer of JPMorgan Securities since the dispute is over checking and savings accounts that aren’t under the jurisdiction of FINRA. The company said the claims should be decided in court or by a non-FINRA arbitration panel.

READ MORE:JPMorgan fights FINRA arbitration for elder fraud case, countersuesJPMorgan client who lost $50 million amid dementia denied trialAs elder fraud explodes, banks beat back duty to call copsJPMorgan cites ‘investor remorse’ in defense against $20M suitSuit: Schwab should and could have stopped elder gold bar scam

On Monday, federal judge Jesse Furman dismissed JPMorgan’s suit, saying the arbitrators themselves have to decide where her claims should be heard. The bank could have refused the arbitration and sought immediate relief in court, Furman said, but instead sought to throw out the FINRA arbitration proceeding, a request that was denied.

“Having made that choice (not to mention, having already submitted the question to the FINRA arbitrators and lost), JPMS may not now obtain relief from a court,” the judge said.

Wall Street firms are facing increasing scrutiny over whether they can be held responsible for losses by clients whose ability to understand their investments has been compromised as American retirees are living longer while sitting atop a record stockpile of wealth. While financial institutions screen customers to ensure they’re sophisticated enough to make complex investments, practices for monitoring their cognition as they age are less regimented.

“Money laundering and wire fraud happen at financial institutions and we have alleged these financial institutions either don’t have appropriate policies in place or didn’t follow them to protect a senior in need,” said Kraus’ lawyer, Jenice Malecki.

A spokesperson for JPMorgan had no immediate comment on the decision.

A federal judge in Boston in October threw out a lawsuit against JPMorgan filed by a once-wealthy client whose portfolio disintegrated as he slid into dementia, saying it didn’t appear JPMorgan knew about the client’s deteriorating cognition over the years in which he lost a fortune the firm had pegged at more than $50 million.

Graham pleaded guilty in Miami in May to wire fraud for defrauding his mother out of about $8.4 million as part of a deal with prosecutors. He’s faced with as much as 20 years in prison at his sentencing, which is scheduled for September.

Prosecutors said that Graham began helping his mother in 2017 after she became a widow and began transferring money from her accounts into his own checking account starting in September 2019. The government alleged that he told her financial advisor that he was making investments on her behalf and paying for medical care, when instead he was spending it on himself and others — including purchases of art and jewelry.

Kraus has also sued Graham in state court in California.



Source link

Tags: ARBCaseFraudJPMorganpanel
ShareTweetShare
Previous Post

Why Job Security Is Winning Over Job Switching

Next Post

Land & Buildings Investment Management takes new positions in GLPI, REXR in Q2 moves

Related Posts

edit post
Your Top October Money Questions Answered

Your Top October Money Questions Answered

by TheAdviserMagazine
October 24, 2025
0

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage...

edit post
Mortgage Rates Inch Toward 6% as Fed Weighs October Cut

Mortgage Rates Inch Toward 6% as Fed Weighs October Cut

by TheAdviserMagazine
October 24, 2025
0

Mortgage rates fell for the fourth consecutive week, finally nearing 6% for the first time since September 2024. Lenders and...

edit post
Client relationships still advisors’ top priority

Client relationships still advisors’ top priority

by TheAdviserMagazine
October 24, 2025
0

Enjoy complimentary access to top ideas and insights — selected by our editors. Artificial intelligence has become a fixture in...

edit post
*HOT* FREE LEGO Harry Potter Flying Car Set after cash back!

*HOT* FREE LEGO Harry Potter Flying Car Set after cash back!

by TheAdviserMagazine
October 24, 2025
0

This LEGO Harry Potter Flying Car Set is so cute! Looking for a fun new LEGO set to build? Top Cash Back is...

edit post
*HOT* 12 Chatbooks for just  shipped!

*HOT* 12 Chatbooks for just $12 shipped!

by TheAdviserMagazine
October 24, 2025
0

Get twelve Chatbooks for 2025 – one for every month! For a limited time, you can get 12 book credits for just...

edit post
Social Security benefits see 2.8% increase for 2026

Social Security benefits see 2.8% increase for 2026

by TheAdviserMagazine
October 24, 2025
0

The Social Security Administration on Friday announced a 2.8% cost-of-living adjustment for 2026, raising monthly payments for nearly 71 million...

Next Post
edit post
Land & Buildings Investment Management takes new positions in GLPI, REXR in Q2 moves

Land & Buildings Investment Management takes new positions in GLPI, REXR in Q2 moves

edit post
SEC Delays Truth Social BTC & Ether ETF As Critics Flag Conflicts

SEC Delays Truth Social BTC & Ether ETF As Critics Flag Conflicts

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

0
edit post
Popular investing strategy losing appeal with stocks at record finding

Popular investing strategy losing appeal with stocks at record finding

0
edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

0
edit post
2025 List of All 46 Energy Stocks Now From Major Energy ETFs

2025 List of All 46 Energy Stocks Now From Major Energy ETFs

0
edit post
Another Violent Outburst – Democrats Inciting Civil Unrest

Another Violent Outburst – Democrats Inciting Civil Unrest

0
edit post
White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

0
edit post
China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

October 25, 2025
edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

October 25, 2025
edit post
White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

October 25, 2025
edit post
Popular investing strategy losing appeal with stocks at record finding

Popular investing strategy losing appeal with stocks at record finding

October 25, 2025
edit post
How Many Dimes Are In 5 Dollars?

How Many Dimes Are In 5 Dollars?

October 25, 2025
edit post
A Brief History of the Enduring American Embargo against Cuba

A Brief History of the Enduring American Embargo against Cuba

October 25, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • China’s rare earth limits may have ‘gone too far this time’ as US trade talks start
  • Why Southwest stock is down while American Airlines is soaring
  • White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.