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pretty scary story
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: From: Zaitzeff@xxxxxxx
: To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
: Subject: Re: Access to funds in personal accounts.
: Date: 15 October 1998 18:55
:
: Russell, re: access to your account, or any of ours for that matter.
Here is
: a personal story colored by my perception of reality: I am no legal
beagle.
: You make your own call.
:
: A friend of mine, a pilot, retired from one of the major airlines
about 6
: years years ago. He put his money from a 401K (about $1.5 million) in a
safe
: place, so he thought, with a big firm, based on a pitch from a broker. A
: month later he got a call from another broker requesting his business.
“Sorry,
: I have my money with “---”. “Oh?, I heard they went bankrupt last week.”
?
: --- / ? oops. . . yikes !!!
: The facts: Yes, the firm had gone bankrupt. NO, the firm had not
informed
: their client.
: Luckily, he had his funds in a personal account with them with no order
for
: further distribution or investment. Did he have access to funds in his
own
: account? NO!! (If you think about it, who is going to write you a check
or
: authorize a wire transfer.)
:
: The bankruptcy court froze all accounts with that firm. Even 5 months
: after the fact, he still did not have any access. He hired a lawyer (one
of my
: relatives) who had connections to some of the big banks and legal firms.
He
: had to file letters, prove source of funds and distributions; and
finally,
: certifications of hardship to even get access to a distribution of about
a few
: thousand a month, and even that was on an ad hoc basis. He was finally
able to
: get his money in a little less than a year. My friend showed me the
letters
: and paperwork - Wow!!!
: Larry Z. Seattle
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