Million Dollar Fortunes Lost: The High-Stakes Legal Battle of the Doelgers
When Peter Doelger signed the papers for JPMorgan Chase to manage his fortune, he had created a company spanning the entire United States, sold it to a conglomerate, and bet the profits on stocks and oil, beating the markets.
At the age of 78, he claimed to be worth at least $50 million. However, things took a dramatic turn when signs of dementia started to show. Over the next half-decade, the Doelgers saw a near-total disappearance of their wealth, relying increasingly on JPMorgan’s advice to manage their portfolio, only to see it diminish to $1.5 million before they sold their condo in Boston and moved in with relatives.
Now, details of how their wealth unraveled are emerging in high-stakes legal suits in federal court in Boston, testing the extent to which a major financial firm could be held liable if a wealthy client falls into dementia.
Peter and Yoon Doelger filed a lawsuit seeking to recover tens of millions of dollars from the country’s largest bank. They trusted JPMorgan Chase to manage their assets but did not expect the loss they incurred. Peter, now 86, is unable to recall much of what transpired and has been declared incapable of testifying in the litigation.
The Doelgers’ situation highlights a problem that has always existed on Wall Street but is gaining importance as the baby boom generation retires with a record store of wealth. Many elderly clients are considered “accredited” investors, allowing them to buy riskier and more complex assets, but the industry lacks a formal system to detect cognitive decline.
The battle threatens to wipe out the Doelgers’ remaining savings, as JPMorgan filed a countersuit, alleging that the Doelgers’ allegations are without merit and seeking to have them cover their mounting legal costs and other unspecified damages.
Both sides are entrenched in their positions, with JPMorgan claiming that Peter Doelger, a successful energy industry CEO, was aware of the risks associated with his investments and had been advised to diversify his portfolio. However, the Doelgers maintain that JPMorgan’s representatives increased their investments while Peter struggled to understand the complex nature of his investments. JPMorgan asserts that it has policies in place to protect elderly and vulnerable customers and denies any knowledge of Peter’s cognitive impairment.
The outcome of this legal dispute will have far-reaching implications, not just for the Doelgers, but for the financial industry as a whole. It calls for more attention to how declining cognitive abilities affect older people’s ability to make financial decisions and more responsibility on financial companies to spot warning signs.