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Lost all my savings at Scottrade

Posted Sun January 7, 2007 3:38 pm, by Theresa N. written to Scottrade

Write a Letter to this Company


RE Cheated out of all my money, $400K+ retirement funds by Scottrade, Inc., a local Stock Broker

This is what happened to me in the past two weeks. Scottrade, a stock broker in Irvine did unauthorized trading in my retirement account, lost my life savings of $400,000 and is now harassing me to try to make me pay them $250,000 more.

I am in my 50s, a Postal Clerk readying to retire. My husband is much older and is not well. He has had 3 cancer surgeries in the past year and is on chemo, takes pain medication, etc. We have had small accounts at Scottrade for many years, maybe 10+ years, IRAs, etc. A year ago I sold a home that was my separate property. It had been a gift from my father. As my husband is not "all there" I opened an account at Scottrade in March or April 2006 and when my deposit of approx. $325K cleared, on the phone I invested in 3 or 4 preferred big company stocks. I had the account in my name specifically so my husband, a good man but ill, could not "screw it up".

In August my husband who is home on disability and who watches finance programs on TV like the Jim Cramer show, decided to trade my account into very, very risky margined small company stocks and options. (I had a margin and option agreement just in case I wanted to use it at the suggestion of Scottrade but my intention was to only have preferred, safe investment stocks). Scottrade talked to my husband frequently about my account, never let me know what was happening. They let him trade on line, in person and on the phone, trading maybe 50 times per day on average for several months. I had NEVER authorized my disabled spouse to trade my account. This account was for my retirement in a few months hence. I think I even called it "Theresa's Retirement Account" and the Scottrade employees knew I was retiring soon too. The account which was worth $400K in equity after I deposited another $100K after mny first deposit, ballooned into a $3.5 Million risky margin account and in late December all my money was lost when a couple risky medical stocks like NFLD, small companies with no profits, collapsed, dropped 85% in one day. Even when the problems began, Scottrade talked to my husband and not to me about MY account, my separate money! They hid from me what was happening and he says they told him not to tell me "yet". This is not fair!

I was always at work, I work 10 hours a day, 6 days a week when all this happened. Now my life savings are gone and Scottrade is after me for another $250K in addition to the $400K+ I lost because they let my disabled husband trade on a lark when I was at work. Scottrade has been calling me at work although I tell them I can't take calls at work. Their people threaten to ruin my credit and sue me and garnish my wages. I didn't do this. Scottrade did and I think they earned a lot of money on interest and commissions on what they did with my husband when I was at work! The trades were not authorized by me (he used my social security number as Scottrade uses that for the password on all accounts and as we have IRAs there, my husband knew how to enter trades) but they also did things for him in person. He made friends at Scottrade, brought them wine and cookies and I am left with no money for my retirement!

Why didn't Scottrade's Management people who are badgering me now, see the risk, the millions of dollars of margin debt and small risky company investment? Why did they let him trade, talking to him and not to me? How can a $400K investment owe $3 Million? What can I do now!

Scottrade should return my retirement money or at least discuss some kind of settlement with me


Reply



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by Chris M. Posted Mon December 3, 2012 @ 3:46 PM

I lost my savings to Scottrade also. Have you been able to get any
positive legal advise? Post email me @ winmachomes4@aol.com? My name
is Chris

Thanks

Reply
by busybeefun Posted Wed June 20, 2012 @ 8:49 PM

Hello, I maybe a little late, but, is there a law suit ongoing with
Scottrade??? My husband was handling our money invesments, during the
stock market fall. My husband died in 12-2008 of Cancer. But, we
lost almost
$ 200,000.00 (200 Thousand dollars). I would like to be included in
that lawsuit.

Please get back to me. Beverly Overdevest
busy-bee@bak.rr.com June 20, 2012

Reply
by Susan3041 Posted Sun August 12, 2007 @ 3:26 PM

I had @$2500. in stocks @$1.20 to $1.50.a share. Before I realized,
the account showed I had monies to invest on margin so I did again and
again until my stocks totaled $40,000. The stocks went down and I got
a margin call for $32,000. I paid, next day I received another call
for $17,000. I couldn't pay and they sold my stock for $17,540. to
cover. Why am I the only one that suffers because of their software
made the mistake of fooling me?

Reply

lost savings with Scottrade by Chris M. Mon December 3, 2012 @ 3:57 PM

by BlueGirl Posted Wed April 25, 2007 @ 3:53 PM

First: Margin is not allowed on IRA accounts. Period.

Second: You are told when you open an account that the password it
your SSN. Customers should be advised to change it & if whoever opened
the account for you did not state this, it would have been on the
welcome letter your received.

If your husband was calling in to place trades on your account you HAD
to at some point have given then a signed form authorizing him to
place trades on your account. And your signature would have been
verified. There is no way the company would open themselves up to such
a potential security risk. Especially in light of E*Trade and other
companies having all of there problems with identity theft recently.

You let your husband trade on your account, he put you in the red &
now you are upset you are the one legally responsible.

Its called di-it-yourself investing for a reason.

Reply
by C B Posted Sun February 4, 2007 @ 6:40 PM

Here is the problem with some "do-it-yourselfers," they never want to
be accountable. You knew what your husband was doing, but told him not
to stop, but you expect ScottTrade to know when he is logging into
your account online and call him up to tell him to stop?

The second you knew your husband had your PW, did you ever contact
Scotttrade to claim fruadulaent activity? Did you attempt to change
it? Did you call up Scotttrade and say "hey, please don't let my
husband trade in my account and make a complaint immediately upon your
knowledge of the first trade placed?

No, you sat back and did nothing hoping for the best as your husband
traded in your account with your full knowledge.

Don't even sit here and insult the intelligence of this audience as
you pretend to be little-miss-innocent when you are nothing more than
a liar. Your husband placed those trades with your password and you
only cried wolf when your incompetent husband was so far over his dumb
little head, so now someone else must pay becuase the two of you are
unaccountable morons.

Reply

Why the hostility toward this woman? by RedViolet12 Wed December 8, 2010 @ 9:49 AM
by donaldj Posted Tue January 30, 2007 @ 8:11 AM

You seem to have made some bad choices. I have been a customer of
Scottrade for about 10 years now & am satisifed w/ their service. I
have also assisted my son in opening an account there & was
specifically advised by Scottrade personnel on numerous ocassions that
the only way I could trade on my son's account (he is 24) was if my
name was also on the account (as co-owner) OR he signed an
"authorization to trade" form, giving me the power & permission to
trade on his behalf. We chose the latter route becasue he wanted me
to help him get started in investing. I don't know which you did
(sign your husband as co-owner OR submit an authorization to trade on
his behalf) but either way, it was your mistake. You can't blame
Scottrade for that, IMO.

Reply

by MrCoder Posted Sun January 28, 2007 @ 4:43 PM

One more reason not to get married! The only thing marriage offers
anyone is FINANCIAL RISK and some voodoo nonsense about a guy who
walked on water and spontaneously generated some fish.

Your husband's idiocy and the laws surrounding marriage and money are
completely to blame. As a woman, you are in the minority for having
lost so much money due to marriage. Now you know how a majority of men
feel.

Reply


Scottrade by Karen Homer Wed January 31, 2007 @ 1:05 AM
by J. Posted Wed January 24, 2007 @ 3:42 PM

Well, Theresa. Sounds like Scottrade didn't lose your money, your
husband did. If he was authorized to get his hands on your money, why
wouldn't he be authorized to trade it? You should never have allowed
your husband to play with your retirement money like that. Can't you
get him a set of tinker toys or something to keep him occupied??

Having said that, I would never do business with Scottrade. No
legitimate reason I suppose other than I find his commercials very
annoying. There's something about that man that is arrogant and I
can't help but picture in my mind that he's probably an awful person
to work for. Yes - I'm stereotyping based on the persona I see on TV,
but yuck. I don't like the guy. And I'm not alone. My husband had the
same impression.

Reply
by jwb1066 Posted Fri January 19, 2007 @ 3:01 PM

Margin trading allows you to purchase equity positions (stocks) for a
fraction of the cost - and your broker coveres the rest of the expense
by loaning you the money to cover the full price of your purchase. You
are generally required to maintain 25% to 30% (varies by broker) of
the value of your total purchases in your account in cash. If the cash
value of your account slips below this amount the broker issues a
margin call. You must then meet the call by selling positions to
reduce holdings or putting cash in the account.

The hope is the value of the positions rises and then when you sell
them you make enough to pay back the broker's loan and turn a profit
for yourself.

In your case it sounds like your husband watched a little TV,
considered himself an expert, and engaged in highly risky trading
practices. Ultimatly purchasing millions in margin positions which
tanked. Now your broker wants the money they loaned you to buy those
positions back. And technically, you owe them the money.

You can hire a lawyer and try to fight on gorunds that your husband
should not have been allowed to trade on your accoutn and the broker
should have known and had a means to stop him. But all that aside -
you and/or your husband owe a lot of money to your broker.

Reply

Read more . . . but still by jwb1066 Fri January 19, 2007 @ 3:21 PM

by Nuri E. Posted Thu January 18, 2007 @ 9:12 AM

Hey, I bet that if your husband made you 3 million dollars from your
400K, you would not be here complaining. The only blame here falls on
your HUSBAND!!!!! and YOU!!!!. If you really wanted that account to be
solely yours, you would have taken more precautions. I really hope
that you get your money back.... yes I said it, I hope you get your
money back, and then have Scottrade sue your husband for the damages,
and then you are out that money anyway and to where you husband left
you off. It looks like your husband has a history of "screwing things
up" as you stated above. If you were so worried about him why not take
those extra precautions?

Reply


Haven't you read... by Jeffrey Thu January 18, 2007 @ 10:54 AM

by Donkey Kong Posted Fri January 12, 2007 @ 7:46 PM

Why didn't you tell him NOT TO TRADE ON YOUR ACCOUNT?

Reply

by Jeffrey Posted Wed January 10, 2007 @ 9:28 AM

I do not work for Scottrade, but here's some information that I
found:

(1) They very clearly state "Scottrade provides self-directed
investors with discount brokerage services. Scottrade does not make
recommendations or offer investment advice of any kind." Therefore,
any advice or commentary that ST made about your account was not to
construed as advice. To quote: "You alone will bear the sole
responsibility of evaluating the merits and risks associated with the
use of any data, information or content...before making any decisions
based on such data, information or content."

(2) "...you agree not to hold Scottrade or its third-party content
providers liable for any possible claim for damages arising from any
decision you make based on information made available to you..."

(3) "NO ADVICE OR INFORMATION, WHETHER WRITTEN OR ORAL, WHETHER
OBTAINED BY YOU FROM SCOTTRADE, FROM A SCOTTRADE EMPLOYEE OR AGENT or
THROUGH OR FROM THE Web site, SHALL CREATE ANY WARRANTY NOT EXPRESSLY
STATED IN THESE TERMS AND CONDITIONS."

(4) Several places, including the home page of the web site, they
stress the HUGE risk involved with a margin account.

Reply

Can't argue with the facts! by S. Brown Wed January 10, 2007 @ 12:34 PM


Wanna bet Theresa will? by Tina N Wed January 10, 2007 @ 5:26 PM

Speaking of Theresa by S. Brown Wed January 10, 2007 @ 7:35 PM


Maybe she hooked up with the Blockbuster dude by donno Wed January 10, 2007 @ 9:49 PM


And what? by calm Wed January 10, 2007 @ 10:15 PM


OMG, Cal! by tickytack Thu January 11, 2007 @ 8:08 AM


LOL!! by Tina N Thu January 11, 2007 @ 9:00 AM


I didn't see THAT coming. Hilarious. by donno Thu January 11, 2007 @ 12:31 PM


Re: Speaking of Theresa by tickytack Thu January 11, 2007 @ 8:10 AM

Margin Account by edywdgo Wed November 26, 2008 @ 5:45 PM


by Venice Posted Wed January 10, 2007 @ 12:53 AM

This is the first time today I looked at this thread, and Theresa I'm
begging you, please email Greg at greg@planetfeedback.com and have
this entire thing removed immediately.

Reply

Lost all my savings at scottrade. by Gary W. Mon November 12, 2012 @ 4:39 PM

by donno Posted Wed January 10, 2007 @ 12:38 AM

Did everybody see this in the update posted the morning of 1/9?

That is 30+ trades a day. "What did you do today, hon?" "Oh, not
much, I was on the phone for 3 hours." Multiply that conversation by
120 days.

And the average loss per trade works out to $100. Hey that is not as
bad as it looked before.

Reply

by kierdevin Posted Tue January 9, 2007 @ 8:47 PM

Your spouse does have legal access to that account. Since by being
married, it's his money too... I agree with everyone, in that you
should get this off the internet...

Reply


Not necessarily by tickytack Wed January 10, 2007 @ 7:58 AM


by CandyPickletoes Posted Tue January 9, 2007 @ 3:12 PM

Theresa,

I understand your angst and can feel your stress over this incredibly
sad turn of events. The only thing I can offer you is that perhaps it
would be a good idea to send an email to Mr. Helpful (Greg) here at
PFB and request that he remove this letter and all comments. Then
proceed with your case against Scottrade. Attorneys are trained to
twist words to their advantage (sorry LadyMac, I'm not trying to
insult you or your profession) and the Scottrade attorneys can take
everything you have said thus far and twist it around so it looks like
you actually did the trading and are now regretting it. You don't
need to give them any ammunition against you.

If two posters on this website can point out holes in your story
certainly the attorneys are going to be able to. Not only are they
going to be able to they are going to do it and you'll end up with
nothing + attorney's fees to pay.

Take a deep breath, don't worry about what is said here. Your main
concern needs to be to get it removed as soon as possible.

Good luck.

Reply


"Attorneys are trained to twist words to their advantage" by LadyMac Tue January 9, 2007 @ 3:30 PM


Sorry by CandyPickletoes Tue January 9, 2007 @ 4:10 PM


LadyMac, you are... by Jeffrey Tue January 9, 2007 @ 6:57 PM


LadyMac by mary jo Tue January 9, 2007 @ 7:30 PM


I hesitate to get involved in this conversation, but... by Venice Wed January 10, 2007 @ 12:59 AM


I forgot something by mary jo Wed January 10, 2007 @ 8:27 AM


It seems to me by LadyMac Wed January 10, 2007 @ 8:44 AM


I totally agree, LadyMac! by tickytack Wed January 10, 2007 @ 9:21 AM


Wow...for some reason it doesnt suprise me by mary jo Wed January 10, 2007 @ 3:01 PM


She probably takes it personally, Mary Jo by tickytack Thu January 11, 2007 @ 8:12 AM


Nah by LadyMac Thu January 11, 2007 @ 9:09 AM


Lawyers aren't any different than the rest of us by RedheadWGlasses Thu January 11, 2007 @ 11:11 AM


Exactly! by Venice Thu January 11, 2007 @ 3:34 PM


Ummmm... by Firebrat Tracy Thu January 11, 2007 @ 9:16 AM


I've read this now and Ladymac by >Leanne< Thu January 11, 2007 @ 9:36 AM


i just have to by eydieville Wed January 10, 2007 @ 8:45 AM
by S. Brown Posted Tue January 9, 2007 @ 1:45 PM

If you are going to proceed with a lawsuit against Scottrade, my
unprofessional advice to you would be to have PFB immediately remove
your original letter and all subsequent comments and posts.

Although the company you are writing to only gets your original
letter, nothing is stopping them from coming to PFB to read our (and
your) comments. My point is that you are making a lot of wild
accusations and your side of the situation keeps subtly changing. My
concern would be that Scottrade's legal team could use these
statements against you.

I'm surprised that the attorney you allegedly met with yesterday
didn't instruct you to get off the Internet.

Reply

My version has not changed! by bunny1 Tue January 9, 2007 @ 1:58 PM

Well, if that's the case . . . by S. Brown Tue January 9, 2007 @ 2:11 PM


Query by LadyMac Tue January 9, 2007 @ 3:17 PM


I would love to discuss this letter, because it's fascinating, but for your own good (and your husband's) please take people's advice and don't have this conversation on a public website n/t by calm Tue January 9, 2007 @ 5:15 PM


It's simple... by Jeffrey Tue January 9, 2007 @ 7:11 PM


That was another suspect comment for me by tickytack Tue January 9, 2007 @ 2:11 PM

and YESTERDAY? by S. Brown Tue January 9, 2007 @ 2:14 PM

Dear probably Scottrade employee by bunny1 Tue January 9, 2007 @ 2:16 PM

I'm not a Scotttrade employee by S. Brown Tue January 9, 2007 @ 2:29 PM


Not a jerk, nor a Scottrade employee by tickytack Tue January 9, 2007 @ 2:38 PM


Nope by LadyMac Tue January 9, 2007 @ 3:20 PM


How convenient... by Tina N Wed January 10, 2007 @ 8:31 AM


Have you also noticed by tickytack Wed January 10, 2007 @ 9:23 AM


Of course she's not by tickytack Wed January 10, 2007 @ 9:25 AM

by Jeffrey Posted Tue January 9, 2007 @ 12:34 PM

Theresa,

Was the IRA on the same "account" as the joint accounts?
Specifically, could the same ID and password be used to access the IRA
and the joint accounts, online?

If not, then I'm not sure I understand how your husband executed
online ANYTHING in your IRA account. Unless someone (you or
ScottTrade) gave out YOUR password to your husband, he would have NO
WAY to access your account online. And I do believe (correct me if
I'm wrong) you said that he did some of his work online.

While it's certainly possible for your husband to get your password,
since he has access to your US Mail, ScottTrade can't be responsible
for that.

Again, as has been said, even if they are partially responsible, they
will almost certainly sue your husband for his part in this.

There is little chance of you winning against ScottTrade, even if
there is a "smoking gun," without him being sued. Unless he's unable
to stand trial (in which case he'd have to be committed to someone
that can care for him properly), there is a good chance of him being
forced to repay at least some of ST's losses (to you). So, even if
you manage to recover 66% of your losses, your husband may need to
cough up a big chunk of that. Maybe even more.

Reply

Interesting Perspective by S. Brown Tue January 9, 2007 @ 1:20 PM

Here is the problem by bunny1 Tue January 9, 2007 @ 1:50 PM

For cyring out loud, Theresa by S. Brown Tue January 9, 2007 @ 2:09 PM


Theresa.. by Harleycat Tue January 9, 2007 @ 4:04 PM


Given what you just said here... by Jeffrey Tue January 9, 2007 @ 6:35 PM


by Lee H. Posted Tue January 9, 2007 @ 8:10 AM

According to what I am reading in your letter and replies, you were
okay with the trading when these high-risk investments were paying
off. It wasn't until the bottom fell out that there was a problem.
If I'm not mistaken, didn't you say something about him making you
rich and getting a lot of other people on board with this company?

I would suggest that, even if you were not fully aware of what your
husband was doing, you will have two options: one, accept the loss
and do what you need for your husband and you to survive or two, move
on with such a lawsuit. The problem with the lawsuit, as it seems, is
that you will be hanging him with identity theft. It seems the only
way you could win such a suit is to loose him to the prison system.

So, you spend your retirement working or visiting your husband in
prison.

If a good attorney has not already told you, I would absolutely
discontinue any further communication with Scottrade and even others
about this issue. It should be an attorney that communicates for you.
Remember, this letter will be sent to Scottrade. With a pending
lawsuit, their legal team will easily be on this site retrieving any
relative communication from you.

I wish you the best of luck.

Reply

Rediculous! by bunny1 Tue January 9, 2007 @ 8:39 AM


Uh, read LadyMac's posts by tickytack Tue January 9, 2007 @ 9:16 AM

I didn't say that by bunny1 Tue January 9, 2007 @ 10:02 AM


In an earlier comment you said: by LadyMac Tue January 9, 2007 @ 10:41 AM


I don't have to work there by tickytack Tue January 9, 2007 @ 10:57 AM

If you take this to court . . . . by S. Brown Tue January 9, 2007 @ 6:02 PM


WHAT ARE YOU DOING??!!! by Lee H. Wed January 10, 2007 @ 8:28 PM


Hey Mikey, we finally agree on something by Venice Sun January 14, 2007 @ 11:41 PM
by bunny1 Posted Tue January 9, 2007 @ 7:39 AM

I interviewed several attorneys yesterday and found someone with lots
of experience who will take a 33% contingency and won't ask for any
money from me up front and will ry to get my attorneys fees back at
the arbitration. He says that the phone recording Scottrade makes
(they record all calls) will "hang them"! They did talk to my husband
all the time about MY account and when things were going bad at the
end, Scottrade called him and told him to sell all the stock or they
would. He did so but perhaps I wouod have acted differently, borrowed
money to put into the account instead of selling everything at a loss?
We will never know.

As there is no "Power of Attorney: for my husband nor did they ask me
to sign authority for him to trade unless Scottrade is really illegal
and erases the recordings, they are toast!

I also filed complaints with all the governmental agencies I could
think of like the SEC, NASD, SIPC, Corporation Commission and even the
Better Business Bureau. Lots of our friends have IRAs or other
investments and I am active in MADD and I volunteer at a few charaties
and at church. I am going to tell everyone who will listen how
Scottrade ruined my retirement. I am still realy angry! I printed
out the monthly statements for the attorney yesterday and there were
over 4,000 trades, stock and option transactions in the past 4 months
and my account was leveraged 90% is what the attorney said,

Thanks to all on PlanetFeedback for your support. Does anyone know,
do they send a copy of my letter to the company, to Scottrade in this
instance?

Reply


Wait a second... by tickytack Tue January 9, 2007 @ 8:14 AM

Monthly Statements by S. Brown Tue January 9, 2007 @ 12:44 PM


Exactly by tickytack Tue January 9, 2007 @ 12:47 PM

LadyMac hit the nail on the head - - as usual by S. Brown Tue January 9, 2007 @ 2:54 PM


Bunny , Please lock the Barn... the horse is already beaten to death. by Gino Version 1.2 Fri January 12, 2007 @ 11:56 PM

by none that people say to my face Posted Mon January 8, 2007 @ 7:36 PM

You need an attorney and i urge you to get one now. A person not of
sound mind cannot legally make decisions, but of course, you will have
to prove this. You have my sincere sympathy.

Reply

Scottrade people are bullys by Harm44 Mon January 8, 2007 @ 9:38 PM


So because they MAY be "very young" they are bullies? by RedheadWGlasses Tue January 9, 2007 @ 8:34 AM


older people by eydieville Wed January 10, 2007 @ 8:32 AM

by Harm44 Posted Mon January 8, 2007 @ 6:35 PM

Poor woman! I think Scottrade treats a lot of people badly. A very
dear friend of mine, in fact my girlfriend about five years ago when
she/we had our run in with Scottrade, she had an active trading
account where she bought and sold stocks of computer chip companies.
the manger of the Scottrade office in Newport Beach as I remember, a
kid five or more years younger than my girlfriend alsways made pases
at her when she came in to make a deposit or ask questions. When she
didn't give him the time of day, all of a sudden lots of bad trades
she swore she didn't make started appearing in her account.

My girlfriend tried to sue Scottrade, couldn't and had to go to
arbitration. She hired a lawyer and everything. The panel was made
up of old retired stock broker types and she lost. She also lost a
lot of money as I recall on those bad trades. I testified and she had
witnesses but the panel ruled for Scottrade!

I think the best idea is to stick with Schwabb or Fidelity or a bigger
broker that hires more grown up people in their offices. be sure to
get an attorney even if it costs you so they can't take advantage of
you!

Reply


Yes, because we know that all "grown up" people by Casmly Sat January 13, 2007 @ 7:28 AM

by Gino Version 1.2 Posted Mon January 8, 2007 @ 3:12 PM

Add me to the list of people who empathise with your situation. While
I'm sure your husband had your best interest in mind, when people face
this illness, they often feel a tremendous amount of guilt and fear
for what will happen to their loved ones should something happen.

Unfortunately there are unscrupulous people (in all professions) who
take advantage of people at their most frail and fragile moments.
I hope you find a good lawyer in this field, try asking around, check
out the American Cancer Society Site, the place your husband goes for
treatment.(It was an oncology nurse that helped one woman find sound
legal advice).

Just don't give up!

I wish you all the best and hope you can recoup some if not all your
losses.

Reply

by Jeffrey Posted Mon January 8, 2007 @ 11:48 AM

I'll throw my sympathy your way and repeat what everyone else has
said: get a lawyer.

I'm not a lawyer, but the only defense ScottTrade (which is NOT a
local firm) can have is if they claim that your husband provided them
with the proper password. If he was trading online, then presumably
he had the password. As well, they are supposed to require the
password for phone trades, as well. If he was able to give them your
password, they could claim that they were under the impression that he
was authorized.

I know from my own experience that I'm able to "do things" to my
wife's accounts because I have her SSN, password, and so forth. As
long as I have this information, very few will actually deny me simply
because I'm not her. In fact, since she has a name which could be a
masculine name, few question it. I never claim to BE her. But when I
call and say "I'm calling about the account for Pat Somename [not her
real name, of course} and the SSN is 123-45-6789 and the password is
'jack hammer,'" they don't ask who I am. Now, I don't do this for
trading stocks or anything like that. However, I COULD, since she has
provided me with her password.

This all said, if you can show that they KNEW that your husband was
not authorized (e.g., "they told him not to tell me yet"), then you
have a very major case against this company. Of course, you and your
lawyer will need to prove this, since the company will claim your
husband made it up.

Don't take my comments to be negative. I'm simply sharing an insight
that you and your lawyer are likely to explore.

Until you get a lawyer, refrain from further contact with the company.
You can hurt your case by making the wrong statement.

Good luck.

Reply

Thanks Jeffrey by bunny1 Mon January 8, 2007 @ 1:33 PM


Out of curiosity by LadyMac Mon January 8, 2007 @ 1:45 PM

I don't expect $2 Million! Just cancel the trades he made! by bunny1 Mon January 8, 2007 @ 1:56 PM


You can prove a lack of access by LadyMac Mon January 8, 2007 @ 2:11 PM


One more thing by LadyMac Mon January 8, 2007 @ 2:24 PM

Statements from Scottrade by bunny1 Mon January 8, 2007 @ 2:58 PM


Um, question by tickytack Mon January 8, 2007 @ 3:06 PM


This is true Ticky by >Leanne< Mon January 8, 2007 @ 3:20 PM

The same question crossed my mind by S. Brown Mon January 8, 2007 @ 6:52 PM


Looking at your investments only a few times a year... by Jeffrey Mon January 8, 2007 @ 3:23 PM

Scottrade's point of view by S. Brown Mon January 8, 2007 @ 7:16 PM


You are right. If she had a strickly female name by donno Mon January 8, 2007 @ 10:12 PM


I also... by Jeffrey Tue January 9, 2007 @ 8:23 AM


by snurli Posted Mon January 8, 2007 @ 10:54 AM

I agree with the others. Usually I don't say this on the PFB forum
but...CALL A LAWYER NOW. Call several. You need help that is beyond
the powers of PFB.

Reply

Scottrade and advice to sue and divorce by bunny1 Mon January 8, 2007 @ 12:30 PM


You have my utter sympathy by tickytack Mon January 8, 2007 @ 12:38 PM


One other thing by tickytack Mon January 8, 2007 @ 12:39 PM

They bill by the hour if you pay them up front by bunny1 Mon January 8, 2007 @ 12:46 PM


That's not the case by tickytack Mon January 8, 2007 @ 1:02 PM


At least in my state by LadyMac Mon January 8, 2007 @ 1:08 PM


Disbursements by tickytack Mon January 8, 2007 @ 1:30 PM


In my geographical area (which is VA) by LadyMac Mon January 8, 2007 @ 12:43 PM


Excellent point, LadyMac by tickytack Mon January 8, 2007 @ 1:03 PM


Yes by LadyMac Mon January 8, 2007 @ 1:06 PM


Wow by tickytack Mon January 8, 2007 @ 1:09 PM


Posted too soon by tickytack Mon January 8, 2007 @ 1:11 PM


Arbitrators get paid a flat fee by LadyMac Mon January 8, 2007 @ 1:14 PM


They do it that way, here, too. by tickytack Mon January 8, 2007 @ 1:31 PM

ticky tack by kmm Fri January 19, 2007 @ 11:48 PM


Yes, I am by tickytack Tue January 23, 2007 @ 9:33 AM


Oh - almost forgot by tickytack Tue January 23, 2007 @ 9:36 AM


Arbitration, Attorneys, etc. by snurli Mon January 8, 2007 @ 1:20 PM

by natalie t Posted Mon January 8, 2007 @ 10:19 AM

You need a lawyer ASAP!!!!!!!!!!!!!!!!

Reply

by LadyMac Posted Mon January 8, 2007 @ 8:50 AM

Without commenting on the legal merits of your situation, I will agree
with the others in this respect: call an attorney. Now.

Also, if your husband has a durable power of attorney for you, you may
also want to destroy it as well. There are any number of situations
where you could, theoretically, be responsible (are you in CA - which
is a community property state? If so, what are those ramifications of
that). All the more reason to go see a competent professional in your
jurisdiction. You may also want to see one that has some
experience/expertise in bankruptcy to see if there is anyway you can
undo this transaction.

Good luck.

Reply

by Cor H Posted Mon January 8, 2007 @ 8:43 AM

This is beyond what PlanetFeedback can likely accomplish for you.

You need legal representation as soon as possible.

Reply

by Harleycat Posted Mon January 8, 2007 @ 8:36 AM

You need to contact a lawyer immediately. You may want to look into
one who's savvy in internet law.

Since the internet is so anonymous, I'm sure there is a grey area with
regard to those trades if he had your user name and password. My
husband and I maintain separate savings accounts and a joint checking
account. Every month, when I do the bills, I transfer funds from each
of the savings accounts to the joint checking account online and pay
the bills. I can do this because I have his user name and password.
However, I cannot go to the bank in person and withdraw money from his
account and he can't do it to mine. That's what I mean about the grey
area.

Call a lawyer, ASAP!

Reply


Thing is by tickytack Mon January 8, 2007 @ 9:00 AM


I Understand That by Harleycat Mon January 8, 2007 @ 9:42 AM


She DEFINITELY needs an attorney; I agree. by tickytack Mon January 8, 2007 @ 12:01 PM

by tickytack Posted Mon January 8, 2007 @ 8:14 AM

Ill or not, I'd be calling divorce lawyers right about now.

Reply

Divorce by bunny1 Mon January 8, 2007 @ 1:25 PM


I completely understand everything you just said by Venice Mon January 8, 2007 @ 6:11 PM


by >Leanne< Posted Mon January 8, 2007 @ 5:31 AM

If his name was not on the account, it doesn't matter that he lives in
the house or is married to you, he has no legal rights to that money
if you did not give permission for him to access it. Good luck with
this.

Reply
by Cubjunkie Posted Mon January 8, 2007 @ 12:16 AM

I feel sorry for you and I don't want to get your hopes up but CALL A
LAWYER NOW.

Talked to a couple of people. There might be recourse. What's the
worst thing that a lawyer will tell you? Nothing can be done and
you're where you are now.

CALL ONE NOW!

If you happen to be in the Chicago metro area I may have a name to
recommend. But that's a longshot you'd be in my area.

Reply

by Sarah H Posted Mon January 8, 2007 @ 12:11 AM

While I do think it was a bad choice to put your life savings in a
stock, it still disgusts me that companies take advantage of people
like this. Did you have them put a note on your account that you were
the only authorized user? Nevermind that...you shouldn't have even
had to if your name was the only name on the account. I think you
should sue them. Especially if they keep harassing you at work when
you told them not to. This is ridiculous.

Reply


by donno Posted Sun January 7, 2007 @ 11:39 PM

there is NO WAY you should have ever opened a margn account, with the
monies for your retirement involved. There are extensive warninigs
when you sign up about the risks involved and adding the ability to
trade on margin is a separate selection with your ok required. Jim
Cramer, by the way, DOES NOT suggest on tv that an individual trade on
margin - he DISCOURAGES it when a caller brings it up. I believe he
even dicouraged it in his book of two years ago.

So your husband used your account and traded on margin. It sounds
like your husband is the culprit. However, how he obtained access and
to what extent people at Scottrade knew about it seems to be critical.
I traded on my mom's behalf for 6 years - forged signatures, SSN,
whatever it took. I supplied the signature that they later checked
everything against. It is possible that if it came to a legal matter
the broker could be held responsible for not requiring that initial
signature to be signature guaranteed. If Scottrade actually stood by
and knowingly let him trade in your personal account that is very
serious. You may need to get a lawyer. It is almost unfathomable
that they would actually tell him "not to let you know yet." Maybe
there is an agency (SEC?) you can complain to and get an investigation
started. I am wondering how you are going to prove that he did the
trading unless someone admits something or there is a record. Was
anything written (signatures)? If anything was ordered over the
phone, Scottrade should have recordings. There should be a record,
because Scottrade has to protect themselves.

I wish you luck. To everyone else, listen to Cramer and don't trade
on margin unless you know what you are doing!

Reply


You're right about the margin agreement, except... by Venice Sun January 7, 2007 @ 11:52 PM


George: "Are you blown away?" Jerry: "I'm blown!" by donno Mon January 8, 2007 @ 12:09 AM

by Venice Posted Sun January 7, 2007 @ 10:31 PM

First of all, I genuinely feel sorry for you. What happened is
terrible, and it sounds like you were already dealing with enough
issues prior to this one.

I would like to say, however, that even if Scottrade starts accounts
by using Social Security Numbers as passwords, you should have
immediately changed yours, especially knowing your husband was in a
particular state of mind and at home all day watching finance
programs. Anything your husband did online is not Scottrade's
responsibility, in my opinion, but I do believe Scottrade IS
responsible for any dealings with your husband in person, as his name
is NOT on the account.

Also, there should have been an email notification for each confirmed
trade, not to mention that you should have been checking your account
regularly, which I assume you were not doing.

It's almost like a case of identity theft, but unfortunately you'll
probably have to press charges in order to recoup any of your losses.

You really should seek the advice of an attorney.

I sincerely hope this works out in your favor. Maybe you were a
little too trusting of Scottrade, and as much as I dislike saying it,
maybe of your husband too.


Reply

I was thinking the same thing about identity theft... by CrusadingStarlight22203 Sun January 7, 2007 @ 11:03 PM


Hopefully by Venice Mon January 8, 2007 @ 12:00 AM

Ugh... by CrusadingStarlight22203 Mon January 8, 2007 @ 12:46 AM


Me too! by Venice Mon January 8, 2007 @ 12:53 AM

Our resident lawyer... by CrusadingStarlight22203 Mon January 8, 2007 @ 1:15 AM


Her husband's mental state is also a factor by RedheadWGlasses Mon January 8, 2007 @ 12:33 PM


My grandfather had dementia by >Leanne< Mon January 8, 2007 @ 9:42 PM


No kidding by olie Mon January 8, 2007 @ 10:13 PM

I'm the "victim" and Scottrade sure isn't being very nice yet! by bunny1 Mon January 8, 2007 @ 12:52 PM


yes by donno Mon January 8, 2007 @ 12:17 AM

My problem is partly the 60 hour work weeks + by bunny1 Mon January 8, 2007 @ 12:41 PM

Make Notes by kayluiz Tue January 16, 2007 @ 12:32 PM
by CrusadingStarlight22203 Posted Sun January 7, 2007 @ 8:09 PM

You should speak to a lawyer immediately. Spouse or not, if his name
was not on the account then he should not had been allowed access. I
can't even access my husband's medical records without his permission
let alone an account that has $400,000 in it. PLEASE speak to a
lawyer on Monday.

Reply


by RedheadWGlasses Posted Sun January 7, 2007 @ 7:37 PM

In my opinion, it's likely that, if your husband wasn't on the
account, they are in deep doo-doo for letting him have access and do
some trading. They'll argue that the money was a marital asset, thus
your husband's as much as yours, and you'll need to argue that the
proceeds were from the sale of property owned prior to your marriage,
and thus were not marital assets. But this gets complicated and
tricky, and I'm not a lawyer -- but I think you should talk to one.
ASAP. Like... Monday.

Can you think of a friend who likely has used the services of an
attorney (draw up a will, divorce...)? Get a referral. Most states
have a lawyers association that will give you several lawyers to call
who are in your area and who practice the kind of law you need.

I urge you to find out this information in your state and find out
whether you have a case or not. Good luck!

Reply

by Tina N Posted Sun January 7, 2007 @ 7:18 PM

Was your husband listed anywhere on the account? HE lost your money,
hun. He should have is butt kicked.
Your husband did this. He authorized the trades.

Reply


I must ask... by Venice Sun January 7, 2007 @ 10:06 PM

Thanks Venice by Suiren Sun January 7, 2007 @ 11:07 PM


That letter... by Venice Mon January 8, 2007 @ 12:05 AM


Password. He had it. Why? by Tina N Wed January 10, 2007 @ 10:53 AM


It was her SSN... by Jeffrey Wed January 10, 2007 @ 4:21 PM




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