contract legalities

[capriblue]

What is the name of your state? IL

A newly widowed friend met with her established financial planner. The relationship was initiated by her late husband 5 years prior to his death. She now has a dispute, and the planner is claiming there is no relationship based on the fact that "there is no contract". My friend doesn't remember signing anything, but does remember her late husband doing so.

My friend trusted this planner to manage her mutual fund for almost 10 years, and now the planner, it looks like in a panic, is denying client/planner relationship because there is a legitimate case of mismanagement and neglect.

What, if any, documents can dispute this? Is the contract the only document that legally defines the relationship?

I have years of facts and details, but don't know what to include at this point.

Thank you.What is the name of your state?

 

[Dandy Don]

Didn't the widow receive regular statements from the planner about account activity and 1099's for interest payments for income tax purposes?

 

[capriblue]

She received no "statements" from the planner, but did receive many statements from mutual fund company listing the planner as her broker.

It is a fact that my friend has many different funds set up by this planner, but the planner is denying any advisory function. In other words, she is alleging that she simply assisted in the initial set-up of funds, but never moved any monies/shares to earn potential income based on fund growth. The planner moved funds around for years in an attempt to retain some of the principal. Interest rates were so horrible at the time (early 2002, after 911), and the planner kept assuring my friend "not to worry, I'll take care of everything". When my friend called the planner to help explain her MF statement, planner said, "you'll never understand it, just trust me, I'm moving things around, don't worry, leave it to me". The fund is now depleted, leaving my friend in shock, and now the planner denies everything. (we do, however, have witnesses to conversations that took place in my friends home which corroborate statements by the planner, like above-mentioned).

Shouldn't there be records of transactions the planner initiated/filed with the SEC or some such regulating commission?

The planner (and her attorney) are blatantly lying, and it seems ridiculously obvious that my friend was/is a client, and to me, basic logic dictates that it should be easy to prove.
(?)

Sorry this post is all over the place, but we are just so confused and a little scared.

Thanks so much for your time and advise.

 

[las365]

Were the funds set up with the widow as a co-owner or the beneficiary? When did the husband die?

 

[Dandy Don]

What this planner did is called "churning" and there are a few business law/civil law attorneys out there specializing in bringing charges against brokers who do this--you probably have grounds for a lawsuit, with the statements as evidence. Also check out www.nasd.org to see if perhaps this planner/broker may have a record of previous complaints. Consult with an attorney to find out whether it would be better to bring charges against her in a lawsuit or to make a complaint through the NASD.

DANDY DON IN OKLAHOMA ([email protected])