Richmond, TX asked in Securities Law and Stockbroker Fraud for Texas

Q: Can an investment withhold funds or freeze accounts that are used for living expenses?

My mom has several accounts with an investment firm that she has had for over 25 years. She withdraws money as needed without any issue. However, the last time she made a request for a withdrawal, she was told her funds were frozen and after speaking with her broker, was told that she would need to provide receipts for prior purchases that were made using the money that was transferred to her checking account from her investment account. My mom pays cash for certain bills and has never been asked for any receipts. Her broker told her to send the bills she needed to pay, and he can pay them out of her account. He attempted to pay her car insurance and the insurance company said they could not accept payment from her stock account so now her insurance has been canceled. She is now at risk for utilities being cut off due to not being able to get the money from the investment firm. She has plenty of money in her stock account to cover the expenses. My question is how is it legal for the

1 Lawyer Answer

A: I am unable to adequately evaluate this situation based on the facts provided, however the facts do suggest that the situation warrants further investigation. If you would like a no charge evaluation of your potential case please contact Nan Thompson at my office.

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