WOW. The delusion is strong in this one. Claiming that TD is depriving him of his "future" value is insane.
You can't fix stupid. One wonders how this person can even walk and talk and feed themselves, much less earn enough money to throw it away on these garbage stocks.
I have no doubt that TD has informed him multiple times why they are selling his positions and closing his account. I am sure he used the 20% of his account that is not penny stocks as collateral in a margin account to provide the funds to buy these penny stocks. But obviously something happened to the margin coverage (his 20% non-penny portfolio probably declined. Were they all listed meme stocks?) and thus it triggered automatic selling to cover.
But here is the thing. As stupid as the "investor" is (and I use the term "investor" very loosely), TD is not without blame. Even though they are not a "full-service" brokerage and allow their clients to make all their own investing decisions, they still have a fiduciary duty to their clients. There is a damn good reason why no other broker will touch his account - they have policies in place that don't allow their clients to do that. They don't want they legal liability of having a stupid client who pours 80% of his funds into non-reporting penny stocks. TD should have prevented him from using that much margin to pour into the concentration of penny shares in the first place. Most brokerages, including online brokerages, have policies about that. If you have a $30K account and buy all garbage, OK. But once you start using margin to buy penny stocks and/or have over a certain amount and percentage in your account, it is usually a no-go. $2 million worth of garbage pennies? TD really dropped the ball on this one.
I suspect that if the investor and his lawyer complain to FINRA, TD is not going to like the result. And they know it, which is why they are trying to wash their hands of the situation as quickly as possible and minimize the damage to themselves.
AI
