Schwab Ordered to Pay $1.3M Over Elder Fraud Crypto Scam
SCHW sits 28% above its 52-week low of $83.96.
Summary
A FINRA arbitration panel ordered Schwab to pay $1.3 million to the sons of an elderly client who lost nearly $1.7 million in a crypto scam. The panel found Schwab failed to act on red flags in three wire transfers to OKCoin. Schwab disagrees with the decision, arguing it shouldn't be liable for the client's losses. The award is modest relative to Schwab's size, but it highlights regulatory scrutiny of broker-dealer duties to detect elder financial exploitation. This follows a period of strong earnings and capital returns for Schwab, with no prior legal issues of this nature in the recent timeline.
At the time of this announcement, SCHW was trading at $107.68 on NYSE in the Finance sector, with a market capitalization of approximately $186.4B. The 52-week trading range was $83.96 to $114.53. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.