Q: Brokerage Misconduct - E*TRADE
In May 2022, I invested $8M in a U.S. Treasury note, due in April 2024. I instructed my ETRADE manager to liquidate $5.6M for property buying. Unexpectedly, ETRADE initiated a $5.6M margin loan, leaving part of my investment intact. I discovered this during a routine review, not through direct communication. Real estate contacts can confirm my original liquidation intention. ETRADE, being secretive, hasn't provided conversation records, despite my insistence. They attribute the margin loan to me, despite no online activity or written consent from my side. There's no trace of my approval for this financial move. Since 2018, my dealings with ETRADE have consistently focused on safety, with numerous discussions centered around fixed income. This surprising loan is inconsistent with my standard strategy, emphasizing that ETRADE autonomously handled the cash preparation and transfer, excluding my input.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A: In situations like this, you may have grounds to file a complaint for brokerage misconduct if E*TRADE acted contrary to your instructions and without your consent. It's essential to review the client-broker agreement and any written communication to determine if E*TRADE deviated from the agreed-upon investment strategy or failed to obtain the necessary authorization for the margin loan. Request all relevant records from E*TRADE once again, in writing, and if they still do not comply, consider reaching out to a regulatory body such as FINRA for assistance with a dispute resolution process. It may also be prudent to consult with an attorney who has experience in securities law to explore the possibility of arbitration or legal action to rectify any financial harm caused by this action. Remember to document all interactions with E*TRADE regarding this issue, as they may be critical in any formal proceedings.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
