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lwpat, Attorney
Category: Business Law
Satisfied Customers: 25387
Experience:  Attorney with over 35 years of business experience.
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About Three(3) Years ago(10/1/08) I was preparing to close

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About Three(3) Years ago(10/1/08) I was preparing to close on a house and needed $1,650,000. I sought advice from my Merrill Lynch advisor to which stocks I should sell in my portfolio. He adviced that I don't sell stocks at this time due to the volatility of the Market and he suggested I take out a Margin Loan. I was against borrowing in this manner but he knew the markets better then me. My portfolio at that time was about $4,300,000. Subsequently, the markets crashed and I finally pulled the plug and sold everything at the end of 2008 losing more then 40%, ~$1,750,000, and I still had to pay back the $1,650,000. This advice cost me about $660,000!

If I sold stock before the closing as I suggested my portfolio would have been($4,300,000-$1,650,000)*(1-.4)= $1,590,000.

Taking his advice left my portfolio at ($4,300,000*(1-.4)= $2,580,000-$1,650,000 - $930,000.


Do I have any recourse against my Broker or ML for this poor Financial Advisory Service?
If so, how would I take action?
Submitted: 5 years ago.
Category: Business Law
Expert:  lwpat replied 5 years ago.
I am very sorry to hear of your situation. Your story is extremely common due to the economic situation that has devastated so many. However, all the broker did was to give you advice. You were the one that made the final decision and you were free to ignore his advice. Like the rest of us, he had no idea of what was coming. You don't evaluate advice in hindsight, you evaluate advice at the time it is given. While I am sorry for what has happened, there is nothing here that opens the door for you to have any legal recourse. Best wishes.
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