Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Brokerage mistakenly transferred shares...legal recourse?
https://www.google.com ^ | 04/20/2016 | Vanity

Posted on 04/19/2016 4:00:30 PM PDT by Homer1

I have a brokerage account. A person with the same name as me passed away and the broker transferred all of my shares to his heirs.

What legal actions can I take? What rights do I have? Anybody in the financial industry that can weigh in...it would be appreciated.

Thanks


TOPICS: Business/Economy; Chit/Chat; Miscellaneous
KEYWORDS: brokerage; financial; fraud; help; legal; question; sec; securities
Navigation: use the links below to view more comments.
first previous 1-2021-4041-57 last
To: CGASMIA68
Well, Homer1 may never know how this happened. Without knowing more details, everyone may be jumping on the broker without cause. Did the broker have another client with the same name and place the trade on the wrong account? Or did another broker with the deceased client place the trade and the transfer agency/clearing firm booked the trade on the wrong account? If the broker screwed this up, his firm will indemnify the transfer agency/clearing firm and viola, the trade(s) get reversed.

I wouldn't trade firms unless I identified the source of the problem.

41 posted on 04/19/2016 4:57:53 PM PDT by liberalh8ter (The only difference between flash mob 'urban yutes' and U.S. politicians is the hoodies.)
[ Post Reply | Private Reply | To 31 | View Replies]

To: PAR35
This is pretty straightforward and happens more than you would think. Before paying a lawyer, I'd communicate with the broker and if need be, his supervisor before I pay someone else to get involved.
42 posted on 04/19/2016 4:59:24 PM PDT by liberalh8ter (The only difference between flash mob 'urban yutes' and U.S. politicians is the hoodies.)
[ Post Reply | Private Reply | To 35 | View Replies]

To: E. Pluribus Unum

Agreed, why are you asking this here, There is huge liability here.


43 posted on 04/19/2016 5:01:26 PM PDT by Walkingfeather
[ Post Reply | Private Reply | To 3 | View Replies]

To: Homer1

First!

Change your name!

Because “Homer1” may be more common than you suspect.

(Sorry.....couldn’t help it)


44 posted on 04/19/2016 5:03:06 PM PDT by G Larry (ILLEGAL IMMIGRANTS impose SLAVE WAGES on LEGAL Immigrants.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Homer1

I have seen a lot of requests for advice over the years here. This one gets some sort of a prize. Just....wow.


45 posted on 04/19/2016 5:06:26 PM PDT by don-o (He will not share His glory. And He will NOT be mocked! Blessed be the Name of the Lord forever!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Homer1

The best advice given was by Attention Surplus Disorder, above. Stay away from lawyers for now unless you want to help them buy that new boat.

You gave the firm fiduciary responsibility to handle your account, but they screwed up, probably honestly. If they are reputable firm, they will have good records and will be able to track the entire chain of custody of your account holdings, and their compliance officer will be more than happy to research it incase it is a systematic failure that could ruin the firm.

Keep calm, gather your account statements, and ask the brokerage to give you the phone number and address of their compliance office. When you call the compliance office, explain clearly what the problem is and ask him when you can expect the stock or funds to be returned to your account. He will probably say he will have to get back to you, then ask him when you can expect him to call you back and what the next steps are.

(For about twenty years I helped Wall Street firms and regulators handle transaction issues, but on a much larger scale than this.)


46 posted on 04/19/2016 5:08:58 PM PDT by fision
[ Post Reply | Private Reply | To 1 | View Replies]

To: Homer1

I would think the broker carries Error and Omission Insurance.

This should be easily traceable.

Hopefully it works out soon. It might be wise to notify the brokers main office if he’s an agent for one of the big companies.


47 posted on 04/19/2016 5:10:07 PM PDT by cyclotic (Liberalism is what smart looks like to stupid people.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Homer1

Contact the Securities and Exchange Commission and any other governmental agencies which are supposed to oversee brokerage firms and practices that you can think of and let them know what happened - keep copies of the letters to show the broker if he/she doesn’t get the problem cleared up like yesterday....


48 posted on 04/19/2016 5:14:23 PM PDT by Intolerant in NJ
[ Post Reply | Private Reply | To 1 | View Replies]

To: TheThirdRuffian

Unless it was done a few weeks ago and the beneficiaries cashed it out before anybody could figure it out.


49 posted on 04/19/2016 5:21:48 PM PDT by E. Pluribus Unum ("If voting made any difference they wouldn't let us do it." --Samuel Clemens)
[ Post Reply | Private Reply | To 5 | View Replies]

To: liberalh8ter

Unless the recipients recognized their great fortune and cashed it out ASAP.


50 posted on 04/19/2016 5:24:15 PM PDT by E. Pluribus Unum ("If voting made any difference they wouldn't let us do it." --Samuel Clemens)
[ Post Reply | Private Reply | To 30 | View Replies]

To: Homer1

You’re wasting time asking on a forum. Lawyer up.


51 posted on 04/19/2016 5:31:55 PM PDT by Daffynition ("We have the fight of our lives coming up to save our nation!" ~ Jim Robinson)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Homer1

Social security numbers or taxpayer id numbers are tied to the account. Regs for financial institutions require them to obtain your ssn to check for backup withholding.

If they screwed up, they fix it.

To avoid lawyer fees, tell them you are going to report it as theft to the police - either identity theft on the part of the transferee, or “regular” theft on the part of the brokerage.


52 posted on 04/19/2016 5:56:10 PM PDT by fruser1
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum
Still won't effect Homer1.... It is his account and either the broker or the clearing firm screwed up. Homer1 will be made whole with a reversal.
53 posted on 04/19/2016 6:03:54 PM PDT by liberalh8ter (The only difference between flash mob 'urban yutes' and U.S. politicians is the hoodies.)
[ Post Reply | Private Reply | To 50 | View Replies]

To: jessduntno

And ask for 50,000 on top of all that, because that is what they will at least incur in legal fees, and defending their license.


54 posted on 04/19/2016 6:49:19 PM PDT by Walkingfeather
[ Post Reply | Private Reply | To 16 | View Replies]

To: Homer1

What a mess. I hope it gets straightened out without any loss to you.


55 posted on 04/19/2016 9:24:08 PM PDT by SaraJohnson
[ Post Reply | Private Reply | To 1 | View Replies]

To: Homer1

Please record that conversation. Then call your lawyer.
And isn’t your social security number affixed to your account?
If a quick resolution isn’t forthcoming—within a matter of days—I’d sue the firm for full recovery and interest, plus lawyer fees, plus damages.
AND I’d sue the heirs who took your money, with your account number, address, and social security number attached in the documentation.


56 posted on 04/19/2016 9:43:33 PM PDT by mumblypeg (Reality is way more complicated than the internet. That's why I'm here.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Homer1

Spoke to them this AM, and they are going to make things whole again...so good all around. Shouldn’t need to lawyer up...


57 posted on 04/20/2016 6:28:40 AM PDT by Homer1
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-57 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson