Stock Acct Opened With Forged Documents

[NeedHelpInCo]

What is the name of your state (only U.S. law)? Colorado

I've been divorced since 2004 and just found out that in January of 2000 my then husband opened a stock account in my name without my knowledge. He forged my name on the documents, transferred stock in the amount of $15,000 and had all statements sent to his office. If I recall, the stock had increased in value significantly since he purchased it in 1999 and I recall him transferring shares to his father, mother, brother etc. I believe now to avoid the capital gains and I would bet without their consent either. When I contacted the brokerage firm last month and informed them that I was never aware of this account until now and I asked them to send me the documents used to open the account. They also informed me that he did the same under our minor daughter's name. When I received the documents, I could tell that my signature had been forged and it is definitely my ex-husband's writing. I called them back and told them it was a forgery. Their response to me was "well, it is junk stock now only worth about $28 so you should be happy and take the capital loss". The point is, I don't want to take the capital loss. It is not my account. I filed bankruptcy in 2002 and did not list this asset since I was unaware of it. Then, during our divorce in 2004 I did not list this asset since I was unaware of it. What can I do? The brokerage firm opened an account in my name without any credentials from me and without contacting me. They sent forms to my ex-husband at his office, and my ex-husband forged my name. What recourse do I have?

[Dandy Don]

Exactly what year DID you become aware of this account?

You need a business law attorney to help you get to the bottom of exactly what happened here, including getting a complete history of the stock's value. Your first recourse is going to bring a lawsuit against your ex-husband because he is the primary culprit here. How could the brokerage firm be reasonably expected to know that your signature was a forgery? Your attorney can also help figure out if the brokerage firm has any culpability or not in this matter.

[NeedHelpInCo]

I became aware of the account in October of 2008. The brokerage firm was purchased by a large investment bank and suddenly I began receiving statements.

I'm curious why you feel the brokerage firm wouldn't have any culpability. They never met me, never spoke to me, never received ID from me plus my husband is obviuously not female. This was apparently all done through an employee of the brokerage firm that my ex-husband has a personal relationship with.

[Dandy Don]

I did not say they do not have any culpability, I was only suggesting that it is primarily your husband's fault in this criminal action. The brokerage firm had a responsibility to confirm your identity, especially if you did not already have an account with them, so they will be partially responsible but whether it is worth going after the brokerage firm is something only your attorney can help decide after reviewing all of the facts.

[NeedHelpInCo]

Sorry, I misunderstood and I agree that my ex-husband is primarily to blame. I will look for an attorney that understands business/banking laws and pursue it from there. Thanks!

[ShyCat]

Originally Posted by NeedHelpInCo

They never met me, never spoke to me, never received ID from me plus my husband is obviuously not female.

Accounts can be opened online or through mailed applications, neither of which require the individual to present themselves personally at some office to be seen, spoken to, or present ID.

[I_Got_Banned]

Originally Posted by Dandy Don

The brokerage firm had a responsibility to confirm your identity, especially if you did not already have an account with them, so they will be partially responsible but whether it is worth going after the brokerage firm is something only your attorney can help decide after reviewing all of the facts.

A "friend" of mine used to work in the brokerage industry and "he says" he cannot remember a single instance where he asked a client for any form of positive identification. In fact, he remembers a few times where people would hand him their driver's license and he'd push it back towards them with a "that won't be needed".

With that being said, and considering the fact that you state that an employee of the firm (who happened to be an aqcuaintence of your husband's) would suggest to me that the firm's compliance dept (or at least that of the particular branch where this occurred) as well as the employee are just as responsible as your ex husband...

My guess is that although the firm has gone through a buyout (which might delute the firm's responsibility), there is no doubt in my mind that the cuplability of certain employee's places his/her career in the securities industry is in the toilet... Whether criminal charges ever materialize or not, the S.E.C. would swoop down on this in a heartbeat. A lifetime ban/censorship from ever working in the securities industry could be easily justified.

Point is... In addition to the Business Law attorney suggestion, I would offer that a Securites Law attorney might be the way to go as well.