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Stock Fraud: Has this Happened to You?

I lost almost all my savings and my husband's life insurance. Because I trusted a stock broker. I moved to the Tampa Bay area around Florida 10 years ago after my husband died at the age of 46 from colon cancer. With two young children to support, I needed to be close to my parents. And I also needed them for financial support.

We were living in New Jersey and were happy with their broker, but he retired after 30 years with Prudential Securities. After my broker retired, the individual who took his place changed my former conservative portfolio into one of mainly high tech and high risk securities.

We were financially secure with our previous broker and he had made a substantial amount of money for us. Unfortunately, even though he had integrity, their previous broker didn't judge the new broker too well. It was upon the old broker's recommendation that we turned their account over to "Chuck".

I would call myself an ignorant consumer who depended upon an expert.

By this time I was widowed and had moved to Florida with my two small kids, ages 5 and 7. The thing that makes it bad for me is that my kids and I relied on that money to get us through.

I got a job as a social worker but it is contract work and the pay isn't great. It is ironic that the motto of my profession is "Stand Up For Others".

My husband had left us his life insurance. And some of the stocks that cost $20,000 sold at $2. All his life insurance is gone.

I talked to Chuck and he encouraged me -- I knew nothing about the stock market. This was in 1999 when people went online and I did the same; I looked at the stocks and saw them going up -- I was happy. Although some were going down Chuck said they would all go up again.

I phoned him and said I was worried but he said don't be and that I didn't have a good understanding of what was happening. I felt victimized and exploited. He condescended to me, made me feel that I asked stupid questions.

Chuck was making a lot of transactions on my account and charging me for each one. In fact he was making more money in transactions whileI was losing money.

I started paying attention to my monthly statements and was alarmed at the amount of money I was losing. So I talked to a neighbor and found a local broker. CP, branch manager of BSS Corporation in Seminole, Florida, put me into guaranteed annuities - a safe portfolio for a widow with two kids.

Chuck took my money and played it as if he went to Vegas and played the tables to get the tax losses.

PC believes that "fraud happened to this woman." Her husband had invested conservatively, such as bonds and utilities stocks, AT&T and Treasury Bills. When he passed away, Chuck told me that he would invest for me like he would invest for his own mother.

Chuck just kept defending his positions and said they were very safe. Almost every one of the stocks has gone bankrupt.

All my prior positions were being liquidated and reinvested in mainly technology stocks. He started doing this in 1998 and continued until 2001.

How can he continue to work at Prudential? I have no clue. I am saddened; the only thing I can say is that nobody is managing Chuck because he is not applying client risk tolerance with investments...

The basic rule that brokers should live by, is 'know your client'. The National Association of Security Dealers (NASD) takes this very seriously.

My account shrank from $110,000 to $20,000. "I think the poor woman deserves financial settlement," says PC. Chuck had inappropriate positioning and lack of concern for the my well-being. You don't put a middle-aged woman with two kids to raise and someone with zero knowledge into tech stocks. I would not be in any of these investments with a normal broker.

This guy should have charges filed against him and his branch manager.

I haven't called Prudential. There are only so many battles you can fight - I haven't phoned because right now I am just trying to keep my head above water. You get afraid, don't want to make complaints. There is a pervasive feeling of shame. Plus it took a long time to get over the death of my husband.





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