Unauthorized trade and negligence

[littlehorses]

A broker did an unathorized purchase of 5000 shares of a stock in my account (margin) and said he would reverse it and didn't. This occured while I was trying to get the account transfered to a Schwab One account. Needless to say it took him an additional 30 days or so to get around to it (only did it after I contacted the clearing house and logged a complaint) and ever worse the account tanked in the mean time. Does this sound like negligence to you?

I have copies of the FAX's that note that my requests for reversal were received by the office.

 

[ALawyer]

No, it does not sound like negligence. It sounds like deliberate misconduct.

Report it to his firm, demand restitution, and consider filng an arbitration request before the NASD. Read the section on Broker Disputes!

 

[littlehorses]

Thanks!

I appreciate your response. I have filed a complaint with the NASD on the subject- specifically noting the unathorized trade. It appears that the broker is rather well known for unauthorized trades as my complaint was transfered from the NY office to another office. It is being added to a seriers of complaints that this second office is working on. I concurr with you that it might be diliberate misconduct. I used the term neglience as it was noted in the NSAD documents somewhere- I think.

I am starting the search now for an attorney who could push this through to arbitration. I thought I might be able to get the firm, broker, to respond with some restituion on my own, but it has became clear that they won't do anything untilled pushed by a third party.

I searched the web site as you recommended a couple of days ago and will start interviewing for an attorny.

Thank you once again for your option on the conduct of the broker!

Regards
Mark