• Report:  #951

Complaint Review: E-Trade - Nationwide

Reported By:
- Tempe, Arizona,

Nationwide, U.S.A.
Tell us has your experience with this business or person been good? What's this?
E Trade's (ET)illegal actions in selling our stock (1000 shares of AOL and 515 shares of EGRP)have cost us over $65,000 by 11/9/99.

They sold the 1000 AOL that were put to us without giving us a chance to pay for it despite the fact that

1) There was NO market risk to ET as we held 10 Jan. AOL puts, 2) The business day before, they told us we would have a chance to pay for the stock (this is admitted in writing and is on tape), and

3) Numerous specific provisions of their contract were violated by ET.

A dozen specific paragraphs of the contract are FRAUDULENT in that ET has no intent to honor them. 1(p) gives until settlement date to pay for purchases.4 says they go by the custom in the market, yet ET will not even consult another firm.

5 say they screwed up BAD).

6 says there is "insurance", but doesn't say that negligence and fraud are not covered.

8 says "All orders" will be authorized by me.

9 says that monies must be received by "settlement date". 9 also says "liquidation" if not by settlement date or as market conditions warrant. Instead they say they can sell without any reason!!

15 says tape recording of calls for "mutual protection" yet despite their promise to release the tapes and transcripts they refuse.

17 says to pay indebtedness on "demand", yet they make no demand.

1,pg10, says will extend credit, yet they withdraw that extension without reason or notice. 3,pg10, says reasons for liquidation, yet firm ORALLY claims it needs no reason. 3,pg11, talks about waiver of notice, but does not reserve the right to tell us one thing and then promptly do another.

2,pg12, says they will furnish the OCC book, but they refuse despite months of demand.

We have sent them formal notice of an intent to file a class action pursuant to California Civil Code Section 1872, but they have not responded.

All in all, I view this company as a fraudulent and incompetent firm. They should not be licensed to sell securities or even milk to the public.

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