ChandlerB13
Junior Member
New York is my state.
My broker put margin on my stock account, collateralized with my bank to back a loan with a minimum of $178,000 of equity in stock. By doing so the broker in essence put conflicting pledges on the same stock and then proceeded to lose all of it. Now I have NO collateral and the bank is issuing a judgment against me for defaulting on the loan.
I have just discovered that doing this is, if not illegal, is certainly unethical and violates my broker's fiduciary responsibility to me, his client.
I knew NOTHING when the account was opened three years ago. But I have certainly been studying lately. I am frantic and have no idea what to do, so I called my local attorney--who is so busy he has done NOTHING in a week.
Part of this was my fault--the bank offered three settlement options by harassing me for several months but I couldn't supply any of them: more stock (also lost), liquid assets (none left), and home equity (didn't think it to be sufficient). Well, apparently I did have sufficient equity but turned in the signed papers a few days late after panic attacks made me incapable of dealing with this.
I am a mess because of this situation. Not only did my broker lose my life's savings of around $500,000, he charged me $201,000 in commissions and fees through constant churning--a fact I just discovered in the last few months after finally amassing all the data necessary. Rushing to tell my husband this horrible number, I fell down the stairs the day after my cast was removed after foot surgery, re-injured the foot and my NECK, and had two additional surgeries. The bank knew this. I am 63 years old and this was the last money--and obviously the last FOOT--I had to risk.
I am not a typically wimpy and stupid woman, but this time I really I just lost it.
My question regards recourse or steps to be taken to end this nightmare. I am not a thief--I don't mind pledging my equity on the house but the banker said this has matter has gone to the attorney and the judgment is being issued. TOO LATE...TOO BAD.
What is my legal recourse before the judgment is issued? Can I put in a motion to vacate due to broker malfeasance and name him as liable? I should add that this broker sits on the board of directors for that bank and that the banker--his good ole boy buddy--also knew the collateral account was margined and said nothing. Doesn't this imply conflict of interest and lack of supervision? Both violations?
Any assistance would be greatly appreciated...
CB
My broker put margin on my stock account, collateralized with my bank to back a loan with a minimum of $178,000 of equity in stock. By doing so the broker in essence put conflicting pledges on the same stock and then proceeded to lose all of it. Now I have NO collateral and the bank is issuing a judgment against me for defaulting on the loan.
I have just discovered that doing this is, if not illegal, is certainly unethical and violates my broker's fiduciary responsibility to me, his client.
I knew NOTHING when the account was opened three years ago. But I have certainly been studying lately. I am frantic and have no idea what to do, so I called my local attorney--who is so busy he has done NOTHING in a week.
Part of this was my fault--the bank offered three settlement options by harassing me for several months but I couldn't supply any of them: more stock (also lost), liquid assets (none left), and home equity (didn't think it to be sufficient). Well, apparently I did have sufficient equity but turned in the signed papers a few days late after panic attacks made me incapable of dealing with this.
I am a mess because of this situation. Not only did my broker lose my life's savings of around $500,000, he charged me $201,000 in commissions and fees through constant churning--a fact I just discovered in the last few months after finally amassing all the data necessary. Rushing to tell my husband this horrible number, I fell down the stairs the day after my cast was removed after foot surgery, re-injured the foot and my NECK, and had two additional surgeries. The bank knew this. I am 63 years old and this was the last money--and obviously the last FOOT--I had to risk.
I am not a typically wimpy and stupid woman, but this time I really I just lost it.
My question regards recourse or steps to be taken to end this nightmare. I am not a thief--I don't mind pledging my equity on the house but the banker said this has matter has gone to the attorney and the judgment is being issued. TOO LATE...TOO BAD.
What is my legal recourse before the judgment is issued? Can I put in a motion to vacate due to broker malfeasance and name him as liable? I should add that this broker sits on the board of directors for that bank and that the banker--his good ole boy buddy--also knew the collateral account was margined and said nothing. Doesn't this imply conflict of interest and lack of supervision? Both violations?
Any assistance would be greatly appreciated...
CB