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Author: MBGaultney Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75532  
Subject: Do I have any recourse? Date: 11/28/1999 1:23 PM
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Greetings,

(I figure I deserve to be at Fool.com!) :)

Back in June of this year I submitted all the forms to have my IRA money ... almost $300,000... transferred from a local mutual fund company to a large Internet broker. I moved my funds from a mutual fund to the local companies money market to facilitate the transfer. I was told by the Internet company that this transfer would take 3 to 4 weeks. I called several times after three weeks because my funds were not showing up on my account. They kept reassuring me that sometimes these things take longer and that perhaps my local company was dragging their feet. After two months I called this local company and they insisted that they had never received the transfer. Many many phone calls... I would say twice a month took place between me and this broker. Each time they would tell me they would check on it. Finally ... mid-November I really blew up at them. I found out that NOTHING had been done to get the transfer going. They had all my paperwork but as they said "let the ball drop". They did finally on November 18th send the transfer paperwork out. I was told someone in authority would call me and give me some sort of retribution but that they didn't pay anything for missed opportunity. I am very upset about this since clearly I have lost quite a bit of money having this money just sit in a 4% money market. (My model portfolio that I intended to put this money into has earned 24% since then.) No one has ever returned my call. I called again mad on November 24th asking why I wasn't even given the respect of the return call ... and once again I was told they would get back to me. I realize it has been a holiday week ... but it is the 28th and still no return call. I did get notification from my local company that the funds have been transferred. I am not sure I want to keep my money with this company, but I would like to hear what they may offer me if anything since I am out so much. If you could please tell me ... what are my rights here? Who should I complain to? I appreciate your help very much. Thank you.
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Author: rumicro One star, 50 posts Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15734 of 75532
Subject: Re: Do I have any recourse? Date: 11/29/1999 8:55 AM
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<I realize it has been a holiday week ... but it is the 28th and still
no return call. I did get notification from my local company that the funds have been
transferred. I am not sure I want to keep my money with this company, but I would
like to hear what they may offer me if anything since I am out so much. If you could
please tell me ... what are my rights here? Who should I complain to? I appreciate
your help very much. Thank you.> MBGaultney post# 15723

I am curiously waiting for a response to the above question posed by MBGaultney. What is his recourse? Hello leaders and friends!
Rumic

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15736 of 75532
Subject: Re: Do I have any recourse? Date: 11/29/1999 9:50 AM
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Greetings, MBGaultney, and welcome. You worte:

<<Back in June of this year I submitted all the forms to have my IRA money ... almost $300,000... transferred from a local mutual fund company to a large Internet broker. I moved my funds from a mutual fund to the local companies money market to facilitate the transfer. I was told by the Internet company that this transfer would take 3 to 4 weeks. I called several times after three weeks because my funds were not showing up on my account. They kept reassuring me that sometimes these things take longer and that perhaps my local company was dragging their feet. After two months I called this local company and they insisted that they had never received the transfer. Many many phone calls... I would say twice a month took place between me and this broker. Each time they would tell me they would check on it. Finally ... mid-November I really blew up at them. I found out that NOTHING had been done to get the transfer going. They had all my paperwork but as they said "let the ball drop". They did finally on November 18th send the transfer paperwork out. I was told someone in authority would call me and give me some sort of retribution but that they didn't pay anything for missed opportunity. I am very upset about this since clearly I have lost quite a bit of money having this money just sit in a 4% money market. (My model portfolio that I intended to put this money into has earned 24% since then.) No one has ever returned my call. I called again mad on November 24th asking why I wasn't even given the respect of the return call ... and once again I was told they would get back to me. I realize it has been a holiday week ... but it is the 28th and still no return call. I did get notification from my local company that the funds have been transferred. I am not sure I want to keep my money with this company, but I would like to hear what they may offer me if anything since I am out so much. If you could please tell me ... what are my rights here? Who should I complain to?>>

IMHO you are complaining to the right folks (i.e., the brokerage). However, I don't think you have much to go on as far as claiming an investment loss is concerned. You were not forced to liquidate your fund holdings. That could have been done by the fund at the time of the actual transfer. You directed it, though, in the erroneous belief this would hasten the transfer and make it easier. As you discovered, that was a mistake due to the administrative error. But the error itself wasn't the cause of your selling off your old investment.

Good luck and keep complaining. You never know what may happen. But don't hold your breath expecting recompense because I doubt highly you can make a convincing case that the "loss" had nothing to do with your actions and everything to do with the broker's inaction. You might get something, but certainly not all you wish.

Just one Fool's opinion FWIW.

Regards..Pixy

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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15741 of 75532
Subject: Re: Do I have any recourse? Date: 11/29/1999 11:21 AM
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What I haven't noticed yet on this thread (might be because I've just been skimming it) is that when you sign up with a broker, you agree that disputes will be settled by arbitration. This agreement comes in teeny-tiny, and usually faint print, and typically on the back of some page. So, you in theory give up the right to sue.

Whether this is in fact the case I don't know (after all, you can't sign away your civil rights), but it sounds like more disappointing news for MBGaultney.

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Author: BassAttack Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15746 of 75532
Subject: Re: Do I have any recourse? Date: 11/29/1999 10:00 PM
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I wish I could help but the only thing I can think of is to contact the SEC and NASD.

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