This parents lost their investment

Discussion in 'Green Room' started by Son Goku, Jan 19, 2006.

  1. Son Goku

    Son Goku No lover of dogma

    Was on the phone with my mother a moment ago. From what she said, the money they had given an investor to invest on their behalf is all gone now. I'm gathering it amounts to the retirement money they had saved up over the course of a lifetime, from how she described it.

    The stock they put my parents money on devalued, and the person who was their own broker was out of state or something. The person who was put in charge of their finances for the time being, did nothing, and watched their investments dwindle to nothing, while doing nothing to try to reinvest it the whole time... Apperently my parents got a lette of appology from her, who admitted to having been negligent with their money. :eek: My father is now 80, and my mother is 67 years old...

    As of now, I'm gathering all their savings are gone (from the sound of what my mother was saying) and they're not sure what to do. I suggested that they might have a legal case which can be made for this. She plans on asking a lawyer friend of theirs (when he comes to the house) if any legal recourse is left open to them...
  2. VenomXt

    VenomXt Blame me for the RAZR's Folding Team

    Houston, Texas
    wow that sucks man. im sorry im not sure if there is anything legaly they can do but them admitting neglect could be a good or a bad thing.

    good= hey they admited it sue them.
    bad= they know there is nothing you can do about it but they still feel bad so they say sorry.

    anyways hope the SOB got fired that messed it up.
  3. Son Goku

    Son Goku No lover of dogma

    Depends on the way the law is setup for this. Depending on the law, there could be 4 levels of guilt necessary to indict one for misconduct. In order, (though it's been over a decade since I studied any law), it's something like:

    - negligence
    - recklessness
    - knowledge
    - intent/pre-meditation

    in increasing levels of severity. AKA, pre-meditated murder would be a more serious crime then reckless endangerment resulting in involuntary homicide... I'm not sure what statutes would be invoked, so not sure if negligence is enough to go after them on (some laws, negligence is no defence against, such as one neglecting to pay their taxes because they forgot). Other laws, a higher level of illegal conduct or intent would be required...

    I'm hoping a lawyer can help them sort this out, so at least they're not in the position of having lost everything (minus social security and pension) in their retirement years...
  4. Perris Calderon

    Perris Calderon Moderator Staff Member Political User

    new york
    good luck son goku

    let's hope the firm is culpable

    I wish I had more to offer
  5. Henyman

    Henyman Secret Goat Fetish Political User

    wait for the small print "investments may go up or down"
  6. Grandmaster

    Grandmaster Electronica Addict Political User Folding Team

    Santa Clara, CA
    Wow. I'm sorry to hear about it man.

    I hope they get proper compensation. What the hell was wrong with that broker?!
  7. j79zlr

    j79zlr Glaanies script monkey Political User

    Who invests ALL of their money in one stock? Diversify, and hedge any risky investments.
  8. Son Goku

    Son Goku No lover of dogma

    I'm not sure if it was invested in all one stock or not. They actually didn't manage it themself, but put it in the hands of a broker/financial consultant who was supposed to act on their behalf.

    The financial consultant was on vacation, and the person he left it in the hands of, essentially sat back and did nothing, until she sent them a letter admitting her negligence in the matter.
  9. falconguard

    falconguard Carbon based lifeform Political User Folding Team

    This was probably a managed fund investment, a diversified mutual. Unfortunately, people look at this as a diversified investment, as Son's parents probably did.