From the article:
“Beginners are legally barred from trading options, but those who click that they have no investing experience are coached by the app on how to change the answer to “not much” experience. Then people can immediately begin trading.”
If this is true, some folks are probably looking at long sentences in federal prison.
Long before the internet, financial advisors and brokers who were caught intentionally steering clients to inappropriate investments got the felony convictions they deserved. I hope the same thing happens to these scum.
But the behavior described in the article is so extreme, I suspect the company has already bribed someone to keep from being prosecuted.
Yes, the people losing money with these investments are idiots. But cheating an idiot by fraud is still fraud.
“Beginners are legally barred from trading options...”
And just a few klicks from my bunker, a tragic story.
“A suburban Naperville trader (AGE 20) died by suicide last week after reportedly seeing he had a $730,000 negative balance on the popular trading app Robinhood. However, family members said he may have misinterpreted a financial statement.
“How was a 20-year old with no income able to get assigned almost a million dollars worth of leverage?”
Meanwhile, the company said it’s working on changes to its user interface.”
https://www.nbcchicago.com/news/local/naperville-trader-dies-by-suicide-after-seeing-730000-negative-balance-on-app/2292583/#:~:text=Read%20more-,A%20suburban%20Naperville%20trader%20died%20by%20suicide%20last%20week%20after,the%20popular%20trading%20app%20Robinhood.&text=Alex%20Kearns%2C%20a%2020%2Dyear,financial%20markets%2C%20family%20members%20stated.