Complaints
Case History 201103
E-mail to SIPA
From:
"Investor" <Investor@hotmail.com>
To:
SIPA@SIPA.to
Bcc:
Subject:
Meeting
Date:
Thu, 20 Nov 2003 12:34:57 -0500
Hi
SIPA,
How
do I find out "court settlement precedents"?
Do
you have a list of security litigation lawyers?
Thank
you for emailing back so quickly because I am in the final stages of the
Bank Ombudsman's office. Actually, they have already sent me their final
findings (basically siding with the I.A. because of the way he filled out
the application form and also that we didn't react within their time frame
of 30 days!).
BUT,
after requesting a copy of my applications, I noticed
1.
forged initials 3 times on 3 apps....9 in total. I then noticed they had
my wrong SIN # three times
2.
didn't have me as retired (had me as Self Employed Real Estate)
3.
had my "spouse" working in Real Estate when he was a high school
teacher
4.
had my annual income as $50,000 to $100,000 when it was two categories
less which should have been under $25,000
5.
Married is checked although he knew we were living common law.
6.
Industry regulations and Federal Govt Law re identification he had Bank
Branch filled in when I have never dealt with this branch.
7.
As mentioned, three sets of forged initials under Section 5 Shareholder
Communication Instructions.
8.
The I.A. filled out the "Risk" and "Investment
Objectives" Section without explaining the ramifications. It turns
out he has me down as 80% long term and 20% speculative but his
investments were 70% long term and 30% speculative.
The
Asst. Ombudsman even told me that the Medium Risk he had me down as did
not jive with the 80/20% ever.
I
also have two two daughters in university and I am retired without an
income or pension. He knew these facts.
I
didn't realize there were boxes called Safety of Principal. These should
have been filled out with percentages too. However, this I.A. is so smooth
and I did sign the form.
The
initials were added after, as were our occupations....could be other
things I suspect. Spouse and I were there in person on our initial
interview and to sign the applications. The I.A. did not offer me a copy
of this application.
When
I received these applications from the Ombudsman lately, I noticed that
these applications at the end change to "an agreement" and it
would take a team of lawyers to understand it. No explanation was given
for any of the application.
I
feel people are innocently signing an "application" (like a job
application) thinking it's just to bring their funds in from another
institution. I was transferring in from another Big Broker but this was
the first time I had changed institutions or ever had a problem so I was
still naive.
Boy,
have I learned a lot in a year!
On
this interview, the I.A. said I would never have to think again. He would
do all the thinking and worrying for me. Nothing could have been further
from the truth. He suggested I buy Nortel at $52. When it was at $26, we
called to say we were worried and we were willing to sell and cut our
losses. He said "hold". When it kept sliding, he never
called....ever. We were waiting because he was supposed to be doing the
thinking.
We
finally phoned him to say we had a few concerns we would like to discuss
about my account. (Spouse was on the extension.) After this phone call, he
wrote me a letter, copying their compliance department, asking me to move
my account to another institution. The stress this created I couldn't
believe. I tried writing and calling the compliance (after I found out
what a compliance department was) and they didn't respond. I ended up just
changing I.A.s within Bank Brokerage but at a different location.
This
I.A. had put me into rear end loads of a sizeable amount of Mutual Funds
which I was supposed to be earning "10% for an income which wouldn't
touch my principal". No downside was ever explained. No
"safe" investment was made.
I
explained to the Ombudsman that I felt he was more interested in his
commission than protecting my investment and making me an income. I had
removed funds out of the money market which was providing me an income and
I transferred it to the I.A. as well as the investments I had with another
Big Broker.
I
felt I had a solid case with the I.A. telling me he'd do all the thinking
and provide me with a $50,000 a year income but the Ombudsman said he
could only use written evidence.
Anyway,
I have a paperwork file a foot thick. I have the IDA's Rule Book on my
hard drive which I have read and reread. I also feel they have written the
laws to protect the I.A.'s, not the clients.
I
feel the Ombudsman are only nicer compliance officers. They are there to
be a liaison yes, but the bottom line is they are there to see what
documentation you have before you go to court.
I
really feel they are just trying to wear me down and brainwash me into
thinking that the I.A. was doing everything right and I'm just a
complainer.
This
started September 2002 and now they say I can go to the Banking Ombudsman
and then to the IDA but I feel that would just be a waste of time.
I
need help and to talk to other people in the same boat would be helpful.
Thanks,
Investor
Complaints
