Here is the situation: I left the firm that I was at for personal reasons. At the time that I left I had built up a bank, not much money, but still some. The contract stipulates that the firm has the discretion to withold that money if the trader decides to leave before three yrs. However, the firm paid me out. Turns out that the person reasons I left for fell through, so I decided to open up an account with another prop house. My previous firm found out, I guess by looking up my series 7, and decided to ask for the money back...stating that I lied and that they had given me the money out of the kindness of their hearts. They said that if they don't have the money back, they will sue me for it. Question: since they gave it to me, can they ask for it back? and since it is money that I had earned, would a court of law grant them the entitlement to that money? at first, i was concerned they would mark my u-5, but i guess they found out that i had joined another firm after the required 30 days...hence, they had already released my u-5... any insights would be great.
Reveal more details-----Which firm were you with? Which firm are you with now? How much money did the previous firm payout to you at the end. What was your profitability at the other firm? What training did they actually provide? What is your legal/registration status at the new firm?
dont want to give the names of the firms involved, but I was profitable. The only negative month that I had was my first month. The training that was provided only consisted of having a mentor... I am registered as a customer, trading my own money at the new firm, no contracts, just the abilty to come and go as I please.
Tell your old firm to f*ck off. Contracts are bullshit in this business. Firms always threaten to sue, but I have never heard of any firm that actually did it. Also, why are you still in contact with your old firm? They're just trying to scare you into getting the money back (even though it's YOUR money). If for some reason they get in contact with you again, tell them to deal with your attorney and to stop harassing you.