SEC fine and our investment
What is the name of your state? Tennessee
Three years ago, my husband invested just under $6 thousand dollars. His brother invested our money along with his parents and some corporate investers. We pulled out some of the invested money to pay for our honeymoon at one time but left about 13k for another project we deferred for a later date.
About a year later we asked his brother to pull out the rest of our money to pay for our game room. For six months we requested our money and each time we were advised by his brother to continue to invest it as he had moved it from a previous stock to a new one without our permission. We insisted we wanted our money out and did not want to continue to keep it invested.
By the time the game room was complete and we needed the money to pay for it, his brother informed us that our money was frozen as he was under investigation by the SEC and the investing company was not releasing any further information.
Come to find out, his brother had invested all the investers money including ours under his name instead of in individual accounts. Which he was not supposed to do?For one year our money was frozen under investigation. By the time a case went to court, my husband's brother was fined 75k by the SEC. We found out not even three months ago that the money that was frozen (partly ours) is what my husband's brother used to pay his fine to the SEC. He did not ask our permission to use our money or anyone else's for that matter. If the money was frozen to where he could not pull it out, then how could he pay his fine with it?
Is this not theft?
Since the beginning of the investigation we have asked for his brother to begin paying us back because he made the mistake while investing our money. He has told us that he cannot qualify for a loan in order to give us our money back. He has bought a home and a car in the meantime. As a business man does he not first owe his investers their money back? Why should he prosper when he has marred others financially? He works at an investment/broker company that is very well known. How can he keep his job after being indicted by the SEC?
His original hearing against the company (for negelect and withholding information) he won, but they appealed. The company won the appeal and also turned down his settlement offer. He received a counter offer from the company for $40k. He asked us if he should take the offer or settle. After lawyer fees (33%) he would not have enough to pay back the money he owes the investers. He plans on appealing the case. He now states if he appeals there is no guarantee he will get any money and he will not pay us back anything. Does he not owe us back our original investment amount? What would be the most wise decision for him to make?
The law suit my husband's brother has filed with the investing company does not list each separate invester. Therefore, it is like we don't even exist. The investing company is not aware there were separate investers either.
Do we have any legal rights?
This is our problem. Due to the mishandling of our money, we had to open a credit card to pay for our game room which was 9k. The interest rate has gone up to 29%. At the time we invested we were doing well and thought we were wise to invest when the market was doing well. I know, business and family should never mix, so please don't give me that as sound advice ( I already know that, it was not my decision to invest with his brother in the first place).
His brother states that this was the risk we took with investing. He said we did not budget wisely or prepare for a loss. I don't feel this is so. We did not lose the money on a bad investment. He did not invest the money under SEC regulations, he pooled all the money together instead of using a separate account for each invester. We asked for the money out in plenty of time before the game room was complete. He used his invester's money to pay his fine. He now states that whatever is left after paying the fine and whatever he gets from the suit (if anything) he will first use for his lawyer fees and if anything is left over he will give us that. He is not promising he will pay us back regardless, which I feel he should.
Why should we have to pay for his lawyer fees when this was his ultimate mistake?
Should we file a suit?
We hate to do this because he is family, but we desperately need our money. We just had a baby and we both work, but the financial strain this has caused is not easily repaired.
I need any advice you can offer. We deserve our original invested amount (6k). I feel that we should also be rewarded damgages since this has gone on for so long and has created a snowball effect of problems.
What is the name of your state? Tennessee
Three years ago, my husband invested just under $6 thousand dollars. His brother invested our money along with his parents and some corporate investers. We pulled out some of the invested money to pay for our honeymoon at one time but left about 13k for another project we deferred for a later date.
About a year later we asked his brother to pull out the rest of our money to pay for our game room. For six months we requested our money and each time we were advised by his brother to continue to invest it as he had moved it from a previous stock to a new one without our permission. We insisted we wanted our money out and did not want to continue to keep it invested.
By the time the game room was complete and we needed the money to pay for it, his brother informed us that our money was frozen as he was under investigation by the SEC and the investing company was not releasing any further information.
Come to find out, his brother had invested all the investers money including ours under his name instead of in individual accounts. Which he was not supposed to do?For one year our money was frozen under investigation. By the time a case went to court, my husband's brother was fined 75k by the SEC. We found out not even three months ago that the money that was frozen (partly ours) is what my husband's brother used to pay his fine to the SEC. He did not ask our permission to use our money or anyone else's for that matter. If the money was frozen to where he could not pull it out, then how could he pay his fine with it?
Is this not theft?
Since the beginning of the investigation we have asked for his brother to begin paying us back because he made the mistake while investing our money. He has told us that he cannot qualify for a loan in order to give us our money back. He has bought a home and a car in the meantime. As a business man does he not first owe his investers their money back? Why should he prosper when he has marred others financially? He works at an investment/broker company that is very well known. How can he keep his job after being indicted by the SEC?
His original hearing against the company (for negelect and withholding information) he won, but they appealed. The company won the appeal and also turned down his settlement offer. He received a counter offer from the company for $40k. He asked us if he should take the offer or settle. After lawyer fees (33%) he would not have enough to pay back the money he owes the investers. He plans on appealing the case. He now states if he appeals there is no guarantee he will get any money and he will not pay us back anything. Does he not owe us back our original investment amount? What would be the most wise decision for him to make?
The law suit my husband's brother has filed with the investing company does not list each separate invester. Therefore, it is like we don't even exist. The investing company is not aware there were separate investers either.
Do we have any legal rights?
This is our problem. Due to the mishandling of our money, we had to open a credit card to pay for our game room which was 9k. The interest rate has gone up to 29%. At the time we invested we were doing well and thought we were wise to invest when the market was doing well. I know, business and family should never mix, so please don't give me that as sound advice ( I already know that, it was not my decision to invest with his brother in the first place).
His brother states that this was the risk we took with investing. He said we did not budget wisely or prepare for a loss. I don't feel this is so. We did not lose the money on a bad investment. He did not invest the money under SEC regulations, he pooled all the money together instead of using a separate account for each invester. We asked for the money out in plenty of time before the game room was complete. He used his invester's money to pay his fine. He now states that whatever is left after paying the fine and whatever he gets from the suit (if anything) he will first use for his lawyer fees and if anything is left over he will give us that. He is not promising he will pay us back regardless, which I feel he should.
Why should we have to pay for his lawyer fees when this was his ultimate mistake?
Should we file a suit?
We hate to do this because he is family, but we desperately need our money. We just had a baby and we both work, but the financial strain this has caused is not easily repaired.
I need any advice you can offer. We deserve our original invested amount (6k). I feel that we should also be rewarded damgages since this has gone on for so long and has created a snowball effect of problems.
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