Maine Couple's $1.3M Crypto Scam Raises Questions About Financial Advisers' Duty to Protect Elderly Clients

An 80-year-old Maine man who lost his life savings to a sophisticated cryptocurrency scam is now challenging whether his financial adviser had a legal duty to intervene, potentially setting a precedent for how wealth management firms protect elderly clients from financial exploitation. Bruce MacMillan and his late wife Linda were defrauded of $1.3 million in 2022 after their adviser at Portland-based R.M. Davis Inc. liquidated their investment accounts based on what the couple believed were legitimate security concerns.

Background and Context

The case arrives amid escalating concerns about elder financial exploitation, particularly involving cryptocurrency schemes. According to FBI data, complaints about government impersonation scams increased 50% between 2022 and 2024, while cryptocurrency fraud targeting people over 60 more than tripled in the same period, from $1 billion to $2.8 billion in losses.

Maine is among 24 states that have enacted "report-and-hold laws" designed to protect vulnerable adults from financial exploitation. The state's legislation, passed in 2019, grants immunity to financial professionals who report suspected fraud and temporarily hold transactions for investigation. The federal Senior Safe Act of 2018, co-sponsored by Maine Senator Susan Collins, offers similar protections but does not explicitly authorize transaction delays.

Key Figures and Entities

Bruce MacMillan, 80, and his late wife Linda were longtime clients of R.M. Davis Inc., a Portland-based wealth management firm founded in 1978 that manages over $7 billion in assets, according to SmartAsset. The couple had built their retirement savings through successful communications careers after meeting as graduate students at Syracuse University and moving to Maine in 1998.

At the time of the fraud, the MacMillans' adviser was George Carr, a principal at the SEC-registered firm, though they had previously worked with Peter Richardson, who retired at the end of 2021. The couple's lawsuit, filed in June 2023, is being handled by attorney Bruce Hepler, who argues the case "ticked off every one" of the red flags that financial professionals are trained to recognize in elder fraud situations.

Legal and Financial Mechanisms

The fraud began on February 1, 2022, when a security warning appeared on the MacMillans' computer, prompting them to call an 800 number. Scammers claiming to be from Microsoft and Fidelity convinced the couple that their accounts were compromised and that they needed to transfer all funds to a "federally protected" bitcoin account. According to court documents, the fraudsters provided false Social Security numbers and created a false sense of urgency that left the couple in what Bruce MacMillan later described as a "scam trance."

On February 3 and 9, 2022, MacMillan directed his adviser to liquidate three Fidelity investment accounts worth $1.3 million, claiming he had "an exciting real estate opportunity." The adviser questioned the transaction and noted significant tax implications, according to court papers, but proceeded with the liquidation as instructed. The funds were then transferred through Fidelity to a Coinbase account controlled by the scammers.

In October 2024, Judge Thomas McKeon of the Business and Consumer Court ruled in favor of R.M. Davis, concluding that the firm owed no duty to protect the couple "from falling for a scam on their own computer." MacMillan has appealed this decision to the Maine Law Court, seeking a jury trial that would consider whether financial professionals have a responsibility to intervene when clients display clear signs of potential exploitation.

International Implications and Policy Response

The case highlights growing concerns about the adequacy of current regulatory frameworks to protect elderly clients from increasingly sophisticated financial crimes. The Financial Industry Regulatory Authority (FINRA) requires firms to make "reasonable efforts" to obtain trusted contact information for vulnerable clients and has encouraged members to strengthen their elder fraud prevention protocols.

"The risk and scope of this problem is exploding," said John Brautigam, executive director of Legal Services for Maine Elders, in comments about the broader implications of such cases. While report-and-hold laws represent progress, Brautigam notes they remain voluntary tools rather than mandatory requirements, creating potential gaps in protection for elderly investors.

Maine's securities administrator, Jesse Devine, emphasized that global scams require heightened awareness from both financial professionals and their clients. "Scams like this are a problem of global proportions now," Devine said. "It's important to raise awareness and be cautious about any financial transaction, no matter how legitimate it may appear at first glance."

Sources

This report draws on court filings from the Business and Consumer Court in Portland, Maine, FBI elder fraud statistics, FINRA regulatory guidance, Maine's 2019 elder protection legislation, and interviews with involved parties and regulators conducted between 2022 and 2024.