Legal Question in Securities Law in New York

Margin Account

My uncle was by broker with a large firm. I placed approx. $800,000.00 in stocks and mutual funds with him.(inherited) I signed up for moderate risk with growth and income. I was also given checks and a debit card. We spoke almost every day. when he retired, I wasn't allowed to speak to another broker for a month. Finally I was contacted by my new broker and told I was in a margin account and had only $22,000.00 left. I was then presented with a ''margin disclosure statement'' Which I had never seen nor signed. What Can I do?


Asked on 7/20/04, 3:59 pm

5 Answers from Attorneys
William Pinzler william M. Pinzler

Re: Margin Account

You can start a securities arbitration against the broker and the brokerage house. You should contact a lawyer who is competent to handle such matters. I am one but there are many others as well.

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Answered on 7/20/04, 5:07 pm
Scott Ziegler Ziegler, Ziegler & Associates LLP

Re: Margin Account

If you provide us with your name and number we can contact you to discuss. How much money had you withdrawn via the checks and money card? Had you received monthly statements? Did your uncle have discretion over the account (i.e. did you sign a discretion form)?

Best regards,

Scott Ziegler

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Answered on 7/20/04, 5:08 pm
Asi Kirmayer Kirmayer PLLC

Re: Margin Account

You should contact a lawyer to discuss this. There are various rules regarding brokers and dealers one or more of which could have been violated. However, in these kinds of cases, the exact facts and circumstances of the case are extremely important.

You can call me to discuss this at your convenience at (212) 695-6400.

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Answered on 7/20/04, 5:09 pm
Howard Meyers Meyers & Heim LLP

Re: Margin Account

You may have to file a arbitration claim against your brokerage firm. As a former SEC enforcement attorney, I am familar with securities rules and regulations. I will have to learn additional facts so that I can evaluate your case. Please feel free to call me at 212-355-7188, Ext 2. Also, you should be aware that there are applicable statutes of limitations that apply and may bar you from any recovery should they expire. Thus, you should contact an attorney as soon as possible.

Howard

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Answered on 7/20/04, 5:19 pm
Michael Knoll Michael Knoll, Esq.

Re: Margin Account

You've received four good answers already, and I would only add that there are many factors which go into determining the merit of a claim in Arbitration, such as who actually 'controlled' the account, whether the portfolio was 'suitable' (a term of art), and what your actual damages were. I too would be happy to discuss with you, tel is 914.629.0276. You might look at the PIABA web site (Public Investors Arbitration Bar Association; piaba.org) and the NASD web site for lots of information (nasd.com, follow the links).

Time is of the essence.

Michael Knoll

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Answered on 7/20/04, 8:12 pm


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