A federal judge ordered broker-dealer Clarice Saw to pay more than $2 million to the Securities and Exchange Commission after she allegedly defrauded an elderly customer of approximately $2.4 million. Judge Paul G. Gardephe granted the SEC’s unopposed motion in March 2026, ruling that Saw must pay over $640,000 in disgorgement, a matching civil penalty, and prejudgment interest. The original SEC complaint was filed in 2023.
What happened
The SEC accused Saw of misappropriating client funds and liquidating the elderly customer’s securities holdings without consent. According to the commission’s complaint, Saw diverted a portion of the stolen funds to pay her own car and mortgage payments. She also allegedly purchased securities for herself using the client’s money and made unauthorized cash withdrawals.
The victim was an elderly investor who had entrusted Saw with their retirement savings. The alleged misconduct spanned multiple transactions that drained the account over time. The total amount misappropriated reached approximately $2.4 million, representing a devastating loss for a retirement-age investor.
Judge Gardephe had previously ruled in the SEC’s favor on Saw’s liability in June 2025. The March 2026 order resolved the monetary remedies phase of the enforcement action. Saw did not oppose the SEC’s motion for disgorgement and penalties, suggesting limited resources or legal defenses remained available.
Key facts
| Finding | Detail |
|---|---|
| Defendant | Clarice Saw, broker-dealer |
| Total misappropriated | Approximately $2.4 million |
| Disgorgement ordered | $640,000+ |
| Civil penalty | $640,000+ |
| Total payment ordered | Over $2 million including interest |
| Liability ruling | June 2025 by Judge Paul G. Gardephe |
| Remedy order date | March 2026 |
| SEC complaint filed | 2023 |
The impact on elderly investors
Cases like Clarice Saw’s underscore the vulnerability of retirement-age investors to advisor misconduct. Elderly clients often rely heavily on a single trusted professional for portfolio management. When that trust is exploited, the financial damage can eliminate decades of accumulated savings.
The SEC has prioritized enforcement actions involving elderly investor fraud in recent years. Regulators recognize that older victims have limited time and earning capacity to rebuild lost wealth. Recovery through enforcement disgorgement rarely restores full losses because bad actors frequently spend or hide stolen assets before judgment.
What investors should do
Investors who suspect unauthorized activity in their accounts should request detailed transaction statements immediately. Look for securities liquidations, transfers to unfamiliar accounts, or cash withdrawals you did not authorize. Document every discrepancy with dates and amounts.
Investors should also verify that their advisor is registered and review their BrokerCheck record for prior disclosures. A history of customer complaints, terminations, or regulatory actions warrants heightened scrutiny. No advisor should resist questions about account activity or firm oversight.
How to recover your losses
Investors who believe they suffered losses related to this matter may wish to consult a qualified securities attorney to review their options. Arbitration through FINRA can result in compensation for unsuitable recommendations, unauthorized trading, and supervisory failures. Most claims operate on a contingency basis, meaning no upfront legal fees are required.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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