New York State question:I have excusable reasons for not answering a bank letter (which may have been a summons--not sure--I was too upset to read it closely) to re-supply collateral for a loan:1. Reactive depression (requiring medication) and panic attacks caused by stress over this issue2. Physical illness and disability (two surgeries and being unable to walk unaided for seven months, falling down the stairs and re-injuring surgical sites and damage to neck that required MORE surgery and prevented using computer)3. Death of a loved one and travel for last visit and funeral4. Banker and broker misconduct and breach of fiduciary responsibility (banker--lack of supervision and neglect of collateralized account requiring $178,000 in stock to back loan of $124,000; and broker---putting margin on already-pledged stock, thus issuing contradictory pledges on same stock and doubling the risk...which led to total loss of stock in two and a half years.I tried to submit home equity as an option to resupply collateral; and even though the banker granted me an extra month due to terminal illness and resultant death of loved one--and my inability to walk or even concentrate due to stress-related illness---this was IGNORED and I was told that I was too late and that the matter was being referred to the bank's attorney to prepare a judgment for defaulting on the loan. This was two weeks ago. I have since researched non-stop (after being unable to get a SINGLE attorney to respond to my emails--of course last week was the holiday week) and believe that I should immediately submit a defense (documented) about my myriad requests for compassion and delay because of horrendous physical challenges and then death of a loved one were granted (once) and then IGNORED--and afterwards to no response. Ironically the deadline for submitting the copious documentation to offer home equity is the same day I was granted a "several weeks" to travel to Tennessee (because of our loved one's terminal health and funeral) is the same date a different banker said we DID NOT RESPOND so the issue was being submitted to the bank's attorney to start the process for a default judgment on that loan. I have documentation for all of this. Since then I have learned that in New York State these are all excusable reasons and the bank's denying them is not legal. Furthermore I have also learned the other main reason to stop this pending judgment (vacate? dismiss? not sure of terminology) would be misconduct by plaintiff and his assigns--or fraud. Placing contradictory pledges on an already-collateralized account IS MISCONDUCT, and the broker and brokerage are liable (according to SEC regulations: Section 15 of the Securities Act makes any person who controls a person who violates certain sections of the Act [11 or 12]), but so is the banker for neglecting to supervise or oversee my account, either missing the unethical and probably illegal action of issuing contradictory pledges or just "looking the other way" since the broker is a founder of the bank and still sits on the board (conflict of interest leading to breach of fiduciary responsibility?). Sorry for all the background, but I can't get any help anywhere except from THIS GREAT SITE! My question is this: I have excusable reasons for not addressing the bank's letter; and upon copious research (started here thankfully) and learning that the broker is liable for issuing the contradictory pledges (I KNEW NOTHING about stock when this happened three years ago), I am now grateful the bank did NOT take the home equity because I DID SUPPLY the collateral in good faith years ago; and, through their actions of negligence and impropriety, m collateral was LOST. I should add that I had NEVER missed a payment on been late even once in over 15 years--and the first 12 of those years my stock sat hypothecated and in the bank's vault and was totally secure. I moved to a local broker three and a half years ago--with the collateralized stock and all of my other stock--and due to negligence and broker misconduct ALL of it was lost.My question is... how do I proceed?I have not been served with the judgment---don't want to wait for that either--and believe I should send a letter to the court in defense of my actions, stating why the plaintiff should not be allowed to win a judgment against me. And should I file a counter-claim at the same time alleging that the bank is liable for lack of supervision of the account, for conflict of interest, and for breach of fiduciary responsibility by allowing the broker misconduct. Please help me get the proper strategy for a pro se defense and tell me whether I should wait until served? Or which documents to prepare now?Thank you exceedingly. Will pay double what is customary for a thorough response--and will also pay a bonus!
Country relating to Question: United States
State (if USA): New York
Just contacting various attorneys to NO RESPONSE--and doing copious research.
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*Special Note:If you experience technical problems, please XXXXXXXXXX@XXXXXX.XXXHello,My name is XXXXX XXXXX X'X be happy to provide you with information today. I am a licensed New York State attorney but I am not your attorney. The law does not allow me to provide legal advice or form an attorney-client relationship on this public forum. For clarity purposes, are you stating that you had a loan collateralized by stock that was under the control of the bank's appointed broker when the misconduct occurred?Please also expand upon why you believe that the bank is liable for lack of supervision of the account, for conflict of interest, and for breach of fiduciary responsibility by allowing the broker misconduct. Thank you
Thank you. The bank did not officially appoint the broker but twice in the past they had recommended each other. The account was, however, titled in my name and the bank's name as a collateral account. The banker told me that he would receive statements and would supervise the account to make sure the necessary collateral level was present. I have been told that what the broker did--putting margin on that account was in violation of his fiduciary responsibility to me--because of the double risk; unfortunately, I did not get savvy to this until ten days ago. I also know that in securities, as in banking, lack of oversight or supervision or an account that leads to devastating loss is classified as misconduct. As soon as the account was opened the broker lost half of it and the banker said, "NO PROBLEM...the auditor won't check this account for two years."Then the account was beefed back up (since I PICKED ONE WINNING STOCK) and then the broker said, "With margin this account can really zoom up." I was stupid then--and NAIVE to the point of idiocy--so I agreed. The banker said nothing but in his capacity as bank VP he certainly knew that using contradictory pledges on the same account was unethical, to say the least. Two years later when I discovered that the broker had lied about this commissions and rate of margin interest for two years, I tried to leave him but couldn't find a single brokerage in this country that would take in transfer an account that was margined AND collateralized to a bank!That's when I started to wonder, but since the account was then $60,000 less that needed as collateral, I couldn't cash out and move. But it wasn't until ten days ago that I learned that this was NOT ethical and certainly in my WORST interests.I believe it was conflict of interest since the banker--in deference to his longstanding relationship with this broker (bank founder and board member and MAJOR stock holder)--said nothing about the margin or just neglected to check for it.Hope that's clear.
Your response is extremely clear. You appear to have numerous causes of action against the bank, the broker and the brokerage company for their highly unethical and illegal behavior. Some of the causes of action include but are not limited to breach of fiduciary duty, collusion between the broker and the banker, numerous security and banking code violations. There may be criminal charges as wellHonestly I cannot see handling this matter on a pro se basis. It is extremely complex and both the bank and brokerage company will retain counsel. They have a lot to lose in this situationI do realize that you stated that you have been unable to procure counsel. If you would like, I will do some research to assist you in retaining counsel. If so, please tell me where New York State you are located in the closest major cityFiveStarLaw41098.8385223727
Oh my.... THANK YOU!! So much. This is exactly what I thought but have been unable to get a clear answer--like yours--from anyone since the issue is rather complex. YOU DID A SUPERLATIVE JOB--and I am so grateful. I paying a total of $200 for this answer, with bonus. SO please send me a link for the bonus unless it comes automatically.I have just heard from a New York City attorney who is the BIG GUNS and will help me--pretty certain.If not, I will write back and pay you for your suggestions of counsel. I am in Western New YORK, closer to Erie, PA than Buffalo.Thanks again. I will give you five SMILEYS now. You have no idea the relief you have given me. I have lived in HELL since spring of 2011. And guess what? The broker lost all of my stock, which at one time built up to almost $1M from my ONE suggestion---and I discovered that just in commissions, fees, and margin interest, he extracted over $200,000 from me---and I only had deposits just over that amount.And then I learned yesterday that he probably got an additional $200,000 in bonuses and kickbacks for selling us such risky stock--and being his own market maker. The attorney in NYC will also investigate doing a MAJOR broker liability action and submit for arbitration. I think that is mandated, don't you?THANK YOU again...so grateful for your incredible expertise and knowledge...
Thank you very much – I really appreciate your post and thank you in advance for the bonus. I absolutely believe that this is a major broker liability action that a competent attorney would be more than willing to take on a contingency-fee basis. I wish you the best of this difficult time – please let me know if I can assist you further by requesting me directly – simply start your question with "For FiveStarLaw"Please let me know if you have any difficulty with the rating system – some customers have experienced technical difficultyFiveStarLaw41098.8595606481
25 years of experience helping people like you.
Hello Hope,I'm just following up with you to see how everything is going. Were you able to retain counsel?Best Regards,FiveStarLaw
YES!! Thanks to your comments, I secured a FANCY, award-winning Wall Street attorney. He plans to file an answer to the bank's complaint--still not officially filed--and simultaneously file a counterclaim against the broker and a cross claim against the broker.He will then or concurrently file the FINRA arbitration claim. I am very grateful to you and your excellent advice! I feel confident now that not only will this matter be decided in my favor or be vacated but also that the major broker liability case will return all my lost assets and my self esteem.I thank you sincerely XXX XXXXX caring and for turning the situation to one I could handle and act upon.
Thank you so much for keeping me up-to-date with the progress of your matter. I'm pleased to know that you retained competent counsel. I wish you the best of luck
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