Scottrade.com - frozen account for "suspicious trading activity"

[alexdfn]

City: Chicago
State: IL

My personal day trader's account at Scottrade.com has been frozen for "suspicious trading activity". Scottrade representatives are not giving out ANY information on this issue, and even disregarding my calls. Need help of a professional who has previously had an experience with such cases.

Regards,
Alex

 

[Some Random Guy]

Don't bother with the phone, send them a certified return receipt requested letter either asking for an explanation or for a check with all of your money.

There are numerous ways to run afoul of securities trading regulations. I wouldn't care to specualte as to why they froze your account without more info.

 

[efflandt]

Since you mention Day Trading, was it a margin account with at least $25k in assets and no margin calls? There are links to NYSE and NASD requirements at http://www.sec.gov/answers/daytrading.htm

There has been theft of brokerage accounts from overseas. I forget what broker someone was using when they suddenly noticed $14k cash from sold stocks missing from their account. You would not want to be in that position. The eCheck system that Scottrade was using had a potential identity theft of customer info about a year ago.

If you did not violate any SEC regulations, maybe they are just trying to protect you (and themselves). Did you notice anything strange the last time you were able to login?

 

[alexdfn]

Since you mention Day Trading, was it a margin account with at least $25k in assets and no margin calls?

It sure was a margin account, and I never received margin calls.

There has been theft of brokerage accounts from overseas. I forget what broker someone was using when they suddenly noticed $14k cash from sold stocks missing from their account. You would not want to be in that position. The eCheck system that Scottrade was using had a potential identity theft of customer info about a year ago.

There is no funds missing from my account. I guess that the reason for freezing up my Scottrade and bank account was that I have earned so much money in 45 days that 70% of American population don't make in 3-5 years and since I am a little over 20 years of age those guys at Scottrade found my activity "suspicious". As for me, I see no suspicious activity going on my account, I just bought and sold ...

In no way I did anything illegal, such as Pump-and-Dump schemes. In no way I advised anyone to purchase shares via any type of communication.

If you did not violate any SEC regulations, maybe they are just trying to protect you (and themselves). Did you notice anything strange the last time you were able to login?

They are not telling me the real reason for freezing my account, they are not returning my calls, they made sure my checking account is frozen ... hell, I don't need such protection.

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I don't even know if a lawyer will be any good. I called few lawyers who charge 300-500$ an hour, but they are not professional enough to see the picture.

If lawyer tells you that Scottrade has no right to freeze funds on the account, don't believe him, he just wants your money .... that's what I learned

Guys, if you live in the Chicagoland area, and you understand my problem, please give me your phone number via PM on this forum.

 

[Shay-Pari'e]

It sure was a margin account, and I never received margin calls.



There is no funds missing from my account. I guess that the reason for freezing up my Scottrade and bank account was that I have earned so much money in 45 days that 70% of American population don't make in 3-5 years and since I am a little over 20 years of age those guys at Scottrade found my activity "suspicious". Ahh, this is where I have to chime in. I have investments with Calpine, in the access of 50 thousand at this point. If you think you have made 70% more at this point that I make in 3 years, you are very wrong.


As for me, I see no suspicious activity going on my account, I just bought and sold ...Obviously your broker does.

They are not telling me the real reason for freezing my account, they are not returning my calls, they made sure my checking account is frozen ... hell, I don't need such protection. Obviously, you didn't have the monies to keep investing, this is really a no brainer.

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I don't even know if a lawyer will be any good. I called few lawyers who charge 300-500$ an hour, but they are not professional enough to see the picture.

If lawyer tells you that Scottrade has no right to freeze funds on the account, don't believe him, he just wants your money .... that's what I learned

Guys, if you live in the Chicagoland area, and you understand my problem, please give me your phone number via PM on this forum.

You are at a loss, and it is simply your own fault.

 

[xylene]

City: Chicago
State: IL

My personal day trader's account at Scottrade.com has been frozen for "suspicious trading activity". Scottrade representatives are not giving out ANY information on this issue, and even disregarding my calls. Need help of a professional who has previously had an experience with such cases.

Regards,
Alex

Netting a boatload on scottrade is not enough to get your account frozen.

You did not answer. Did you have 25,000 in your account when you day traded? Yes or NO.

Did you play along with the pump and dumpers?

Stop talking on the phone and deal by certified mail.

What does your accountant say? Don't boast about your wealth without expecting a little come down on you for not having a clue about a lawyer and not having an accountant...

Bottom line playing clueless or being clueless is no defense.

 

[alexdfn]

Did you have 25,000 in your account when you day traded? Yes or NO.

Yes, I had twice as much, and never really used margin money

Did you play along with the pump and dumpers?

NO!

Stop talking on the phone and deal by certified mail.

Will do.

What does your accountant say?

I don't have one, I pay taxes on my own and never had any problems with that.

Anyway, what does accountant have to do with my Scottrade account being frozen ?

Don't boast about your wealth without expecting a little come down on you for not having a clue about a lawyer and not having an accountant...

I am currently looking for a lawyer who can handle such case with professionalism.

Bottom line playing clueless or being clueless is no defense.

You are absolutely right about that, but:

If during my entire life I never stole a penny, never commited a crime and trying to be a good resident of the country I am residing in .... do I need a lawyer?

If I did not do anything against the law, do I need a lawyer to represent me ?