dispute with securities brokerage

[ronny knape]

An investment account and the broker-client relationship has become a nightmare. The account has slowly eroded in value and, due to margin calls and partial liquidation the patrimony is only 10% of the original $150,000. Though acknowledging ultimate responsibility, it is an heartfelt conviction that equal measure of culpability lays in the lap of the brokerage firm and its employees. The main contentions are as follows:

1) incompetancy on the part of broker and manager
2) failure to follow instructions
3) inconsistency as to commissions on deals with high charges coming at inopportune and critical situations.

I am trying to transfer the positions that are still 'alive' but the account has been put on hold. I have sent a complaint to the SEC with a a copy going to the compliance department of the firm. Yhe complaint included a synopsis of a conversation I had with the office manager. I asked him if he, the broker who used to handle the account, or the corporation had ever been the subject of complaint, arbitration, regulatory investigations, or disciplinary actions. He took exception to the question saying he was insulted and ended the call. In the complaint, a compromise was offered; that the trade confirmations be reviewed and any anomolies in the commissions be rebated.

In the meantime, I am very nervous that the 600 share position of a really good stock is going to be sold out from under me as I have no liason with the company since the office manager has 'quit' and since the equity ratio is right at 30% while requirement is 35% leaving a deficeit of $4,500 which is not readily avaiable. Though, in composing this rendition, I can see how funny the situation has become, I am pained and to think of forfeiting that which is left causes shame. What to do?

 

[ALawyer]

This is a matter that sounds as if it should be taken promtly to arbitration under the rules of the NASD.

I trust you have already read the Q&As under Finacial Law - broker disputes and securites on FreeAdvice.com.

To help you prepare your case I'd urge you to get a lawyer familiar with securities arbitration matters.

Many good ones are listed on AttorneyPages.com.

 

[juux]

I find it hard to believe you let your account lose money slowly after these brokers made mistakes. Of course thats now water under the bridge...Sell out your position. It doesn't sound like you've been too lucky lately anyway. You should get yourself out of margin.....By the way, what kind of a response do you expect to get by posting on this site. It's a marketing scheme by these filthy lawyers-what kind of advice is that anyway? Referring you to a site to retain a lawyer.. By the way, I'm a broker.