so he creates a tax loss to offset his gain and pocket some changes on the side, a win-win situation until somebody wises up to your deal.
Like having the SEC monitor this site is a threat in any way. Tell your neighbor to tell his brother to stop reading the message boards and actually go out and nab the crooks. Boca is a haven for crooks operating under the disguise of market makers and to date, all we hear out of the SEC office in Miami is how they walked away from an enforcement action against Bear Stearns. Oh, as for this trading scheme - Illegal as this guy is stealing money from his clients by taking the loss while personally taking a kickback.
Thanks for all the good replies. I already figured that if his fund really did not approve then yes it would be stealing and I would be putting myself in trouble. The thing is that he claims that his company is actually Ok with it for some ultra-complex reasons about how losses are accounted for etc. but it still just does not make sense to me and I think he is really trying to snow me. I may be a newbie at trading, but I am not stupid so, as I suspected, I think the advice here is correct and it is something I will not be taking part in.
I have a friend ... I do not really understand what the word friend really means... but... what the hell is going on... really...Are you still thinking you have a friend?
I beg to differ...only a teenager or a total ignoramous would post such a question on an open message board. You do realize the SEC and FINRA can get your IP address from the webmaster and you will be up the creek with no paddle you dope? You might consider having this thread expunged and disappearing.
LOL. The best part is that the "friend" supposedly convinced him that it's better that the fund lose money. I have to call BS as well.
Surdo, posting a dumb question is not illegal so why the paranoia. Likewise FINRA has no jurisdiction over an individual investor, only the SEC does and they are deep into a dark closet without the capacity to step out and see what is happening. FINRA doesn't even have jurisdiction over the hedge fund unless it is a one that has registered with them. The SEC would have a tough time gaining a subpoena for this guys IP address based on this post since there is no admission of anything other than a conversation occurred and an admission nothing came of it.