Broker stole my money

[SassySkrt]

undefinedWhat is the name of your state? Texas

My father is a stockbroker. My grandfather put money into a custodial account for me while I was a minor with my father as the custodian. Around the time I was 18, my father withdrew the entire amount, almost $5k, forged my name on the check, and used the funds for his own purposes. He's admitted everything in e-mails, which I hear are admissable in court, but refuses to pay me any of the money. My grandfather has even told him to do so. I'm almost 24 now and have never seen a dime, even when I asked him to pay for my college, which is what my grandfather had intended the money for. Is 6 years later too late to do something? I also hear he could lose his licensing. Is that true? I can't outright afford a lawyer, but I think I can at least take him to small claims court? I even have a copy of the check with the forged signature. I'm just worried I may have waited too long. Advice or answers anyone?

 

[Dandy Don]

You really need to get at least a consultation with a local business law attorney to find out about the statute of limitations (if it applies or not), or post to lawguru.com and mention what city and county you live in if you want professional responses from local attorneys in your area.

You probably will be able to take him to small claims court to get a judgement that can be collected from him. Is he financially able to afford to repay you? Before going to court, warn him that if he doesn't make arrangements to pay you back that you will file an ethics complaint against him with the NASD (National Association of Securities Dealers, www.nasd.org) and that will affect his ability to do business in the state where he lives. He may not want that and might have an incentive to pay up, but something tells me he is so spiteful to you that he has no sense of right and wrong anymore and just wants to continue screwing you around.

Best of luck in getting this resolved.

DANDY DON IN OKLAHOMA ([email protected])

 

[JETX]

Is 6 years later too late to do something?

And now for a legally accurate ANSWER (rather than just some vague "gee, I don't know").

The SOL for fraud (if that is the case) in Texas is set by Texas Civ Pract & Rem Code:
§ 16.004. FOUR-YEAR LIMITATIONS PERIOD.
(a) A person must bring suit on the following actions not later than four years after the day the cause of action accrues:
(1) specific performance of a contract for the conveyance of real property;
(2) penalty or damages on the penal clause of a bond to convey real property;
(3) debt;
(4) fraud; or
(5) breach of fiduciary duty.

The date of the 'cause of action' is the date you first discovered or became aware of the fraud/breach. If it has been more than four years, then the SOL would have expired and you would not have a valid claim.

I also hear he could lose his licensing. Is that true?

If he were found guilty of fraud, then his 'brokers license' would be subject to suspension or revocation.

 

[Dandy Don]

"Gee, I don't know" applies to YOU! Fraud is not the only charge that could be applied here, so the statute of limitations will not always apply. He could be charged with theft or other charges as well, and if a complaint is filed against him with the NASD, that will affect his ability to do business, so she shouldn't give up until she has consulted with an attorney to find out ALL of her options.

DANDY DON IN OKLAHOMA ([email protected])

 

[JETX]

"Gee, I don't know" applies to YOU! Fraud is not the only charge that could be applied here

Gee, Keith, guess you couldn't read where I said "The SOL for fraud (if that is the case)", huh??

so the statute of limitations will not always apply.

WRONG!!! A statute of limitations will ALWAYS apply in EVERY civil or criminal matter. Oh, and yes, some crimes have SOL's that NEVER expire.

 

[SecuritiesFraud]

Next Steps for handling broker fraud

It seems that the Statute of Limitation might be a problem in your case. The previous posts already discuss this so I will not.

What can you do:

1) File a complaint with the NASD and the Texas Securities Commission.

On the NASD website, there is a section for investor to file complaints online for free http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=470&ssSourceNodeId=13. Your complaint should then become part of the broker’s public record which will put all other customers and employers on notice of the act. Technically the complaint is noted on the broker’s Form U-4 which the CRD provides the public partial access to through the NASD BrokerCheck website. Note, even if there is a successful investigation that vindicates your complaint, you are not guaranteed to receive any money.

2) Initiate a securities arbitration against your broker and his employer.

Your stockbroker's employer might have some liability for allowing your assets to be misappropriated. Since the amount in question is under $25,000, you should consider filing a paper pleading and have an NASD arbitrator consider your claim based on just the paper filing. The filing fee for initiating a paper filing for your losses is under $400. If you win, you could get some if not all of your money back ($5,000) plus any punitive damages or interest the arbitrator deems appropriate. If you lose, you are out the $400.

You could draft the pleading yourself or have a securities attorney do it for you. Attorneys generally charge by the hour or on a contingency fee basis where they only get paid if you win. Since there are some touch issues in your case, the SOL, your relationship with broker, etc. I presume most attorneys would want you to give them a retainer upfront. This might be difficult to justify depending on your current finances.

If you need any help finding a securities attorney like myself, please advise and I can direct you to one.

 

[JETX]

IFile a complaint with the NASD and the Texas Securities Commission.

There is no such thing as the 'Texas Securities Commission'!!

 

[SecuritiesFraud]

Texas Security Commission

The name of the securities commission changes for each state. In Texas, the agency is referred to as "The Texas State Securities Board."

Complaints can be filed with the State Securites Board at http://www.ssb.state.tx.us/Inspections/iccomplaint.html

 

[JETX]

The name of the securities commission changes for each state. In Texas, the agency is referred to as "The Texas State Securities Board."

Yep. And for the sake of ACCURACY, you should use the proper term for the state that is relevant.

 

[Trucking Mad]

And now for a legally accurate ANSWER (rather than just some vague "gee, I don't know").

The SOL for fraud (if that is the case) in Texas is set by Texas Civ Pract & Rem Code:
§ 16.004. FOUR-YEAR LIMITATIONS PERIOD.
(a) A person must bring suit on the following actions not later than four years after the day the cause of action accrues:
(1) specific performance of a contract for the conveyance of real property;
(2) penalty or damages on the penal clause of a bond to convey real property;
(3) debt;
(4) fraud; or
(5) breach of fiduciary duty.

The date of the 'cause of action' is the date you first discovered or became aware of the fraud/breach. If it has been more than four years, then the SOL would have expired and you would not have a valid claim.


If he were found guilty of fraud, then his 'brokers license' would be subject to suspension or revocation.

Wrong! Wrong! wrong! How do you relate real property to check fraud. The act of forging someones signature to a legal document ( check ) is a criminal act that has no bearing on real property. The op should go to http://wwwckfraud.org/ for more clarity on this subject. You obviously no nothing on this subject!
1.) Banks are not required to physically examine every check.
2.) You must report the crime to the police agency where jurisdiction is established
3.) Fill out an affidavit of forgery
4.)The drawer of the check can sue he bank if it paid a check that wasn't properly payable, this includes unauthorized and forged signatures
5.) Check the statues for the state you live in.
6.) Seek the legal advice of a lawyer in the area this crime was performed

 

[JETX]

How do you relate real property to check fraud. The act of forging someones signature to a legal document (check) is a criminal act that has no bearing on real property.

So, your problem is an inability to read and comprehend more than one sentence at a time, huh???
Did you miss the part where the cited statute includes:
(4) fraud; or
(5) breach of fiduciary duty.

And where the OP said: 'Around the time I was 18, my father withdrew the entire amount, almost $5k, forged my name on the check, and used the funds for his own purposes."

And since you seem 'legally challenged', I should point out that in Texas, forgery is under the FRAUD statutes. Texas Penal Code:
CHAPTER 32. FRAUD
§ 32.21. FORGERY. (a) For purposes of this section:
(1) "Forge" means:
(A) to alter, make, complete, execute, or authenticate any writing so that it purports:
(i) to be the act of another who did not authorize that act;
(ii) to have been executed at a time or place or in a numbered sequence other than was in fact the case; or
(iii) to be a copy of an original when no such original existed;
(B) to issue, transfer, register the transfer of, pass, publish, or otherwise utter a writing that is forged within the meaning of Paragraph (A); or
(C) to possess a writing that is forged within the meaning of Paragraph (A) with intent to utter it in a manner specified in Paragraph (B).

From your idiocy in this and some of your other error-filled posts, I think you are all 'trucked' up.

 

[Trucking Mad]

MY MY ! I'm behaving myself

 

[Trucking Mad]

Dandy Don is correct there is no statue of limitations. Please go to web add. in my other post. There are many links there with more info. than you could shake a stick at! Check fraud is considered a very serious offense.

 

[JETX]

Dandy Don is correct there is no statue of limitations. Please go to web add. in my other post. There are many links there with more info. than you could shake a stick at! Check fraud is considered a very serious offense.

Gee.... a 'recommendation' from someone who is a trucking idiot!!!

Some questions this nitwit needs to answer before considering his error-filled post:
1) There is ALWAYS a Statute of Limitations... on EVERY action. Don't let this nitwit confuse you... some crimes/causes of actions have unlimited SOL's... but there are SOL's nonetheless.
2) This is NOT a case of 'check fraud'. Nitwit doesn't even know what check fraud is!!! Forgery of a check is NOT check fraud!!

The following comes from the Wood County (Texas) District Attorney's office:
"If you think that the check you were given is forged, you should contact the police agency for the jurisdiction in the area where you received the check. Because investigation of a forgery case requires resources in excess of those available with the Hot Check/Check Fraud Division, we are unable to accept direct complaints on forgery cases."
http://www.co.wood.tx.us/dattorney.html

In fact, Texas has NO laws against "check fraud"... because it is a common term and NOT legally based.

The FACT is.. the OP's post says "my father withdrew the entire amount, almost $5k, forged my name on the check, and used the funds for his own purposes."
That, dear nitwit, is FORGERY.... and FORGERY under Texas law is FRAUD.... as correctly noted in my post.

So, to the OP... are you going to believe the FACTS, as shown by quoted Texas Penal Code... or some nitwit who offers a generic link to a website (that doesn't work!!).
BTW, here is a WORKING link to the Texas Penal Code, look at Chapter 32:
http://www.capitol.state.tx.us/statutes/pe.toc.htm

 

[Trucking Mad]

My appoligy to the op that my link didn't connect. Please type in manually and you will have all the info. CKFRAUD.ORG. Good luck on your endeaver