Legal Question in Investment Law in Illinois

My futures broker provided an undocumented, unauthorized and illegal $ 130,000 "overdraft fascility" for a futures position. think of it like a Casino granting a $ 130,000 marker to a gambler who is unaware that he used up all he got some time ago.

Total loss: almost $ 400,000 which is basically okay, except they should jave liquidated the position instead of allowing more losses due to their own lack of risk control and oversight. AFAIK, there would be incredible systemic risk if such conduct was tolerated within the industry. Traders are already using a lot of leverage and often swing into the red by a $ 6-digit amount in a single day!

Am looking for a securities specialist to represent me.

The introducing futures broker is in CA, but the account was maintained by a Chicago IL firm.

The CFTC won't comment and there is an arbitrage clause in the contract, as usual. Still, this is something that should never ever happen!


Asked on 2/21/11, 2:21 pm

2 Answers from Attorneys
Adam S. Tracy Securities Compliance Group Ltd

I am an attorney, licensed financial advisor and former futures trader. I would be interested in hearing more about your case. You can reach me at [email protected]

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Answered on 2/21/11, 2:25 pm
Andrew May May Law, PC

I am happy to speak to you about your situation.

I focus my practice on securities and commodities law and used to do nationwide defense for several "wire house" Fortune 500 companies. I used to prosecute these debit cases for several FCMs at a nationally known futures legal boutique firm. I have also continued my studies and am a few credits shy of receiving my L.L.M. (Masters of Law) in financial services law.

I just finished a very similar case, and believe that these are going to be more frequent due to firms downsizing their "back office" operations. I encourage you to contact me before an limitations period runs and bars your claim. You can reach me at [email protected] or (847) 675-1052.

Please feel free to check out our website at www.maylawpc.net for more information.

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Answered on 3/04/11, 3:14 pm


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