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Subpoena From a Brokerage Firm

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  • Subpoena From a Brokerage Firm

    My 18 year old son opened an account with a online stock trading firm last year. When he checked her account in December 2012; it showed his account has a negative balance of $55.
    Last month he receive a subpoena from the trading firm stating his was invloved with fradulant activities and his balance was negative -$9900. They are asking him to pay around $33000.

    Are thse allegations considered to be a crime?

  • #2
    Re: Subpoena From a Brokerage Firm

    Originally posted by khurj01 View Post
    My 18 year old son opened an account with a online stock trading firm last year. When he checked her account in December 2012; it showed his account has a negative balance of $55.
    Last month he receive a subpoena from the trading firm stating his was invloved with fradulant activities and his balance was negative -$9900. They are asking him to pay around $33000.

    Are thse allegations considered to be a crime?
    Since the word "fraud" is being used in relation to the allegations, I'd say yes. If he is engaged in any kind of fraud or insider trading, he can be subjected to criminal charges in addition to a demand for civil damages to repay any fradulent funds he received or transacted.

    Your son is 18 years of age, and for all intents and purposes, he would be considered an adult. If he has become involved in fraudulent financial activities, you can no longer help him. The only think you can do for him is to hire him a good attorney to help him defend against both the civil penalties as well as the potential criminal charges.
    "If it ain't in writing, it never happened."
    "A lack of planning on your part does not constitute an emergency on my part."
    "You can never make the same mistake twice, because the second time you make it, it's not a mistake, but a CHOICE."

    Comment


    • #3
      Re: Subpoena From a Brokerage Firm

      Let me explain his involvement:
      He madde two or three online deposits to his brokerage account over a period. Two of the deposits were returned from his bank due to insufficient funds.

      Comment


      • #4
        Re: Subpoena From a Brokerage Firm

        Originally posted by khurj01 View Post
        Let me explain his involvement:
        He madde two or three online deposits to his brokerage account over a period. Two of the deposits were returned from his bank due to insufficient funds.
        It's entirely possible that these could be considered fraudulent transactions. Once could be a mistake, but when it happens again, it might be seen as intentional. If your son withdrew any of these funds prior to the brokerage firm discovering that the deposits were returned NSF, then he is also responsible for the return of these funds IN FULL.

        My original advice still applies. Your son needs an attorney.
        "If it ain't in writing, it never happened."
        "A lack of planning on your part does not constitute an emergency on my part."
        "You can never make the same mistake twice, because the second time you make it, it's not a mistake, but a CHOICE."

        Comment


        • #5
          Re: Subpoena From a Brokerage Firm

          Originally posted by khurj01 View Post
          Let me explain his involvement:
          He madde two or three online deposits to his brokerage account over a period. Two of the deposits were returned from his bank due to insufficient funds.
          This alone is enough to allege fraud, and the amount he wrote checks for substantial enough to invite criminal prosecution.

          My recommendation is that he get a criminal defense attorney right away.

          Comment

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