Financial #Planner, #Pastor Accused of #Fraud

Fraud indictments for financial planner and pastor over old Chinese bonds, millennials aren’t loyal to their advisors and what makes Edward Jones a great place to work.

A Shreveport, La., financial planner and the pastor of a Houston megachurch have been indicted on fraud charges, the Shreveport Times reports. According to the indictment, Gregory Alan Smith, of Shreveport and Kirbyjon H. Caldwell, of Houston, allegedly used their influence as the operator and manager of Smith Financial Group and pastor of Windsor Village United Methodist Church, respectively, to lure investors to pay more than $1 million to invest in old Chinese bonds. The bonds were issued by the former Republic of China before losing power to the communist government in 1949. They’re not recognized by the current Chinese government and have no investment value. Smith and Caldwell allegedly used the money from the unwitting clients to pay mortgages, personal loans, credit card balances and buy cars and other personal expenses.

Millennials Like Advisors, They Just Aren’t Loyal to Them

It turns out that millennials, the generation seeking out digital solutions for seemingly everything, including their investments, are interested in having a human advisor. The bad news for advisors is that millennials are hard to keep as clients; they are four times more likely than other generations to switch advisors, according to a recent J.D. Power study. Out of those using self-directed platforms, like robo advisors, and have poor communication with their human advisor, 44 percent said they intend to switch. Meanwhile, only 17 percent of millennials intended to drop their advisors if they had good communication and felt the advisors were working toward their goals.


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