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He is going to have to review, or have a lawyer review, TDAmeritrade's terms of service and agreements so that he will know whether it allows them to do what they did.
If the agreement doesn't allow them to do so then he can sue them for breach of contract. If it allows them to do this then, of course, there is no lawsuit possible.
He also needs to look over the rules of the prison system. Some states, such as Texas, prevent a person who is incarcerated form being involved in any money making proposition while they are incarcerated. The reason for this has been explained as they don't want people "continuing to operate criminal conspiracies" while imprisoned and it is too easy to hide the illegal activity inside of other activity.