Financial advisor borrowed money from elderly parents as a "personal loan", now she is unable to repay in full. We had no idea and not sure what to do at this point. Everything we are reading says she broke the law. The advisor is ill and claims her life insurance will take care of all debts if she passes before it's repaid. What do we do?
We have an email that we sent to her in March requesting the loan be paid pack since it was the date she said she would pay it by, then my parents get a $10,000 check from her saying that because of her illness she couldn't pay the rest but would by June 30. Well guess what the other $37,000 is stil out there and now she's saying that she will do her best and her life insurance will pay it if she dies. This is all so frustrating.
We have talked with both parents and i think they understand. Father has dementia which makes it even worse. I feel this person has taken advantage of them and who knows...maybe others.
Thanks for your response. It reinforces exactly what I was thinking.
Your parents need to be repaid immediately....otherwise, it is theft.
good luck
PS: do you have Power of Attorney for your parents? If not, do so immediately. Then you can access their financial information to see if they are giving "loans" to others. Also, have a long talk with your parents about unscrupulous people who will try to prey on their kindness. Ask them to talk with you first if they feel the need to "fund" another venture.