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Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 28912
Experience:  Personal Investment, Tax Preparation
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I am so frustrated right now. 16 years ago, when I was 15, I

Customer Question

Dennis,
I am so frustrated right now.
16 years ago, when I was 15, I traded stocks in my DAD's ameritrade account. I traded $5000 worth for a month, and got the balance to $100K. The SEC accused me of running a pump and dump, and we settled with them by returning the ill gotten gains. Again, I was a kid, it was 2000.
Fast forward 16 years.
I filed bankruptcy in 2009, & have unpaid student loans of 40K that I have ignored since 2008, with no affect to my life. So, my credit score is horrible, & I live my life on cash.
With Ameritrade, opened a ROTH IRA in December. Funded it $5500. In January, funded it $5500 more. So 2 tax years covered, trying to make up for lost time. Put all 11K on Blackberry shares/
Tried to then open an individual account with Ameritrade so I could invest more money on Blackberry. Ameritrade denied my account opening. Would not specify reason.
I decided to leave Ameritrade, and in fact, had 30 days to move my ROTH IRA because Ameritrade said they would not be my custodian anymore.
Got my e-trade accounts opened, transferred my ROTH IRA to e-trade, and funded my individual account with etrade for $3000. Shortly after, they restricted my account stating they can close an account whenever they want and I had 30 days to move my accounts or they would sell off my shares & that would penalize me big time with my Roth IRA.
Went to Trade King, tried to transfer my accounts to them, but etrade had a restriction on my account so the transfer was blocked. I called, they removed the restriction, and said I could proceed with the transfer. Before I could tell Tradeking to re-initiate, they too just closed my accounts stating:
As part of TradeKing’s account verification program, all accounts are verified against a number of third-party databases. This verification is done to confirm the account holder’s identity along with additional background information including, but not limited to, criminal activity, unpaid debits with financial institutions, or diplomatic affiliation.
Your account includes information that may match one or more of the events mentioned above. Regretfully, based on this information we are closing your account.
So at this point, I do not know what to do. At the moment, my accounts with etrade are accessible again, & I even funded my individual account another $6,000 and bought more shares of Blackberry.
I don't know if etrade is going to follow through on their threat to close my account, or if I now slipped through the cracks, but I don't see what my options are. Will Charles Schwab or Fidelity allow me to have an account? How can I be prevented from having even a roth ira!?!?!
Submitted: 1 year ago.
Category: Finance
Expert:  Lev replied 1 year ago.

Sorry for your situation.

You may NOT be prevented from having Roth IRA account and may not be discriminated according to the US law - means - the reason for closing your account may not be based on prohibited reason such as race, gender, disability, etc.

HOWEVER - any vendor may refuse from serving you on any other reason and is not required to provide any explanation.

So far - they did provide some explanation and based on your history - you kind of could guess what is the reason.

Unfortunately - there is not much you may do in such situation...

I might suggest to discuss with your bank and fully disclose the history to the banker.

Some small banks might be willing to have you as a prospective client.

There will not be a simple and guaranteed resolution.