Online Trading

[suffered]

Un-Friendly Deal

What is the name of your state? New York

Hi,
Here is my problem:
A 'friend" convinced and persuaded me to open an online trading account and gave access to him. He was going to get 50% of the gain and promised to cover all loses if account is at loss on the deadline.

When we reached the deadline (after a year), account was at a loss and he refused to cover the losses. He claimed that it wasn't really a deadline and just an estimated time. Then we set the second deadline and I asked him to send me an e-mail detailing the deadline and the action (covering the loss). I received the e-mail. It was simply and clearly stated that the loss on the account would be covered on the date if existed. I was frustrated by thinking I had no option, started waiting for the second deadline.
As we approach the second deadline, account is at a loss and he started making excuses and clearly have no intention to cover the losses.

So my question is:
How can I enforce him to pay this loss?

Thanks for your replies in advance.

 

[Some Random Guy]

Once the new deadline passes, change the password on the account and deny access to him.

If he had the money to pay you back, he would not need to use your money to gamble with. If he had any superior stock picking skills, he would not need your money to gamble with. If he had any respect for you or your property he would not be gambling with your money.

Get out of this situation ASAP.

Otherwise he will try to make up for the losses be making riskier and riskier trades in order to gamble on a bigger payout.

You can try taking him to court, but it may not be worth it if the amount is small.

 

[suffered]

Random Guy,
thanks for the suggestion. Yes I will change the password after the deadline. And yes again, if he was a decent person he wouldn't do any of this.

But I am looking for a more drastic solution. More like a Martha Stewart kind of experience. I don't think she deserved to go to jail. And if the law says she deserved 5 months, there must be another law says he deserves 5 years and that would scare my so called friend and force him to pay as he promised.

If there is nothing I can do, I'll post his name and this problem at every forum, so that I may help protect further victims to this guy.

Anyone know a solution please help!

 

[Some Random Guy]

You can certainly sue him for your losses since he promised to cover them. If all you have is e-mail records then it may be difficult since e-mails cna be forged. Talk to a lawyer - he should be able to examine your evidence of a contractural promise to repay and determine if you have enough to move forward.

 

[hdwillis]

Bigger Issues

Your "friend" may be in bigger trouble than just having to cover your losses. He potentially faces heafty charges and jail time. He held himself out as someone who could provide finacial advice, making him a quasi investment professional. He also promised to cover losses, something that has been deemed illegal by the SEC.

However, I'm guessing he is not registered with the SEC or the NASD. Additionally, it is doubtful that he has any of his securities licenses. Therefore, the law is a little cloudy in this area. My guess is he will face a fine and jail time if you decide to report him. Resitituion is not something I am able to comment on.