Prop firm won't send check to close my account

Discussion in 'Prop Firms' started by syswizard, Feb 7, 2006.

  1. I had an opportunity to move to a more sophisticated trading platform at another firm and needed to "get out".
    4 requests made past 3 weeks....fax, email, regular mail, certified mail. All of these went unanswered. Tried to call the firm's phone number...there was no answer. Called NYC phone directory and they said there was no one listed under that name !
    Interestingly, the prop firm uses another large brokerage firm for it's trade clearing and account management. Despite that firm having access to my sub-account, they refuse to step-in, admonish the prop firm owner (who is their customer), and send me the check.
    The President of the "large brokerage firm" is now aware of the situation as-is the Compliance Officer.
    After the "large brokerage firm" contacted him, I finally received an email from the Prop firm owner and he wants to "talk about it".
    Am I missing something here ?
    Does anyone have a suggestion as to what I should do next ?
    1) SEC complaint ?
    2) NASD complaint ?
    3) contact Elliott Spitzer ?
    Against whom ? Prop firm, Prop firm owner, "large brokerage firm", all of the above ?
  2. you could out him on this site to warn others of problems.
  3. What is the prop firm name - ?
  4. Yes share the name to help protect others !!!:mad:
  5. This may be a legit complaint. It may also be sour grapes. Some prop firms have a very specific, agreed upon, time frame to pull funds or disolve the partnership. This is all part of the contract. Unless we saw the contract anything is pretty much pure speculation.
  6. Is this pro firm you are talking about a member of an exchange like Bright,Echo or one of these pseudo retail wherein they own the account and grant you as a nominee to trade their account? If it is the latter, might be a little harder since there is less regulation less formal agreement.
    Good luck..... BTw, could you tell us, the suspense is killing me.
  7. Orion?
  8. I never signed an agreement with terms like "lock-up" period was ever established, nor was a "k-1" established, only 1099 for profits made.

    Not really...that's not the same as a sub-account where you have a real stake via deposit that determines your BP....correct ?
    Someone is getting warm.
    I'll let everyone know what happens I will then be making my final decision on my course of action. :mad:
  9. First of all syswizard, stop thinking and talking like that. There are easier ways to get your $ back.

    What I was talking about is that there are firms out there that put a big pot of $ (together with yours) get 4:1 Reg T margin. They allow you to trade "their" account. Contrast that with the JBO's who are exchange members, who MIGHT be bound by capital restrictions as to when ClassB can take out sub-account(Insert Don's -->"Bright does not keep capital locked up " here LOL).

    If the firm is the former setup, there would be absolutely no reason why they cant give it to you yesterday.Unless you signed something to that effect. Once again good luck.
  10. By The way How much Was the amount.
    I know any one would be pissed in a situation like this especially if you don't have back up
    Like some one on the post said they must have it locked up and it might take some time for it to get it to you
    #10     Feb 7, 2006