The firm accused broker Craig McClaskey of moving $52,000 of an elderly Moberly woman's savings into a Florida real estate investment that named him as a co-owner. It also accused McClaskey of changing several of the 85-year-old woman's investments to designate him or his wife as the beneficiary, as well as entering into an agreement to purchase his client's home for a dollar.

Edward Jones reported McClaskey to Secretary of State Robin Carnahan's office on Monday.

Laura Egerdal, director of communications at the Secretary of State's office, says such predatory cases occur quite often and brokers use tactics such as free lunch seminars to lure senior citizens into risky investments.

Our office actually did an investigation and a report a couple of years ago that showed that seniors really are often targeted for these scams.

Carnahan's office is treating the case as one of the first under the purview the new Senior Investor Protection Act. The law came into effect in August.

Under the new law, McClaskey can face a minimum criminal penalty of $50,000 and an additional civil penalty of $5,000. Carnahan's office says the broker may also be permanently barred from the securities industry.

The order canceling McClaskey's license did not name the investment firm. Egerdal says the office will investigate to see if Edward Jones will be implicated in the case.

Randolph County officials are also looking into the case. Prosecuting attorney Mike Fusselman says he will determine if McClaskey will face criminal charges after he receives and reviews an official reporting outlining the details of the case. © Copyright 2012, KBIA