The SEC has charged a broker based in Roanoke, Va., withdefrauding elderly customers by stealing their funds for herpersonal use and falsifying their account statements to cover upher fraud.

According to the SEC's complaint filed in U.S. District Courtfor the Western District of Virginia, Donna Jessee Tucker siphoned$730,289 from elderly customers and used the money to pay for suchpersonal expenses as vacations, vehicles, clothes, and a countryclub membership.

Tucker ensured that the customers received their monthly accountstatements electronically, knowing that they were unable orunwilling to access their statements in that format, the SEC saidJuly 31.

Some of the victims were legally blind, the agency noted.

The SEC further alleged that Tucker engaged in unauthorizedtrading and other financial transactions while makingmisrepresentations to customers about their investment accounts andforging brokerage, banking, and other documents.

When asked if any of the victims were members of credit unions,SEC spokeswoman Judith Burns told CU Times Wednesday, “Ifit wasn't in our complaint, we couldn't comment.”

In a parallel action, the U.S. Attorney's Office for the WesternDistrict of Virginia announced criminal charges against Tucker.

Tucker agreed to settle the SEC's charges and disgorge the$730,289 in ill-gotten gains either in the criminal case or thecivil case, according to the SEC.

The agency said she also consented to the entry of an orderpermanently enjoining her from violating Section 17(a) of theSecurities Act of 1933 as well as Section 10(b) of the SecuritiesExchange Act of 1934 and Rule 10b-5. The settlement issubject to court approval.

Meanwhile, in the same state of Virginia, the SEC also obtaineda final judgment requiring a Richmond-based financial servicesholding company, a subsidiary brokerage firm, and their CEO to paynearly $70 million as the outcome of an October 2013 trial thatfound them liable for fraud.

The SEC complaint filed against AIC Inc., Community BankersSecurities LLC, and Nicholas D. Skaltsounis alleged that theyconducted an offering fraud while selling AIC promissory notes andstock to numerous investors across multiple states, many of whomwere elderly brokerage customers.

They misrepresented and omitted material information about theinvestments when pitching them to investors, including the safetyand risk associated with the investments, the rates of return, andhow the proceeds would be used by AIC, the SEC. In reality,AIC and its subsidiaries were never profitable, and Skaltsounis andthe companies used money raised from new investors to pay backprincipal and returns to existing investors.

Credit unions have long led efforts to stamp out fraud againstelderly citizens.

At an April press conference on the issue, the $18 millionCatholic United Financial Credit Union in St. Paul, Minn.,urged other credit unions and banks to be on the lookout forsuspicious activities. Officials with the CFPB, AARP Minnesota andthe local sheriff's office were also in attendance at theconference.

In a Sept. 23, 2013 letter to credit unions, NCUA Chairman Debbie Matz remindedfederally insured credit unions they can alert authorities if theysuspect an older member is the victim of financial abuse orexploitation without violating the member's privacy.

“Research suggests financial exploitation is the most commonform of elderly abuse,” Matz said at the time. “Older adults can becometargets of financial exploitation by scam artists, shadycontractors, dishonest financial advisors or even trusted friendsor family members.”