Merrill Lynch Lost most of a mentally-disabled client's legal settlements by inapproprate margin account and churning Oakland Office Nationwide
After I suffered a brain injury in a toxic chemical explosion at work I invested all of my Worker's Comp., Toxic-Tort suit, and LTD Insurance settlements (plus my share of my inheritance from my family's estate (-in all, $400,000) with Merrill Lynch in 1998-99. They knew I was unable to deal with my finances or understand my statements. My only income was Social Security Disability.
Rather than sell my highest risk securities and mutual funds (as I requested ) so I could invest the cash in a friend's start-up company in the neurological and environmental field (my personal interest area) my broker (Tim Score in the Oakland ,Calif. office) advised me to simply write a CMA check for $50,000 to the start-up company directly from my account.
This, unwittingly put me into a "margin" account for this, and every other VISA charge I made for 3 years. Subsequent market losses in 2000-02 forced the sale of the remainder of my assets through "margin maintenance calls" wiping me out completely in 2003. I hired an attorney and I am now waiting for relief through binding arbitration next month.
Rudi
San Rafael, California
U.S.A.