SHOCKED - broker executed trades, but missed bookings in cash statement

ColdIron

caldi9 wrote: »

It is fraud, nothing else.

So it was something else after all

System

caldi9 wrote: »

Update: the bookings were an error and will be fixed. I suggest you check your cash statements if you invest into single name stocks. It can make a 30k difference.

I think that most of us would notice a £30K discrepancy pretty quickly.

le_loup

caldi9 wrote: »

I suggest you check your cash statements

I suspect most of us do. But thanks for the tip - very useful.

pafpcg

caldi9 wrote: »

Update: the bookings were an error and will be fixed. I suggest you check your cash statements if you invest into single name stocks. It can make a 30k difference.

I assume your broker acknowledged an error occurred within their system and probably promised to identify where the fault occurred and to fix the fault. But could I gently suggest to the OP, that you should also examine your own "financial systems" and identify how you came to miss these discrepancies?

Presumably, you give your broker a sell order for a specific reason. Would not the reason for the sale trigger a check for the sale proceeds in your account on the settlement date (normally two working days after the sale transaction)? If you are regularly trading in such volumes that you can't immediately notice a £30k shortfall, surely the keeping of meticulous and timely records is essential?

For my much more modest level of investing, I keep a spreadsheet that tracks all my holdings and the balance in my cash accounts with my brokers; I also keep a calendar for "cash flow" which lists when dividends for each holding will be paid and how much, to remind me that I need make a check.

In any event, with such volumes of trading as you seem to be suggesting, you'll need your own systems to track purchases and sales for CGT accounting. As you have discovered, relying upon your broker's system is unwise.

caldi9

A lawyer will take the case. Indeed, I will press charges. The broker claims it was an "error" that they did not spot for 3 months.

caldi9

ColdIron wrote: »

So it was something else after all

No, I will press charges. A one-off does not compare to 3 incidents over time.

ColdIron

caldi9 wrote: »

Update: the bookings were an error and will be fixed.

So you accept that a series of errors occurred yet you are going to press charges for fraud - criminal deception intended to result in financial or personal gain. I'm not sure who's the bad guy here

dunstonh

caldi9 wrote: »

A lawyer will take the case. Indeed, I will press charges. The broker claims it was an "error" that they did not spot for 3 months.

You are not the Crown Prosecution Service and cannot press charges.

But please do carry on making us laugh.

System

dunstonh wrote: »

You are not the Crown Prosecution Service and cannot press charges.

But please do carry on making us laugh.

The OP could bring a private prosecution:
https://www.bbc.co.uk/news/uk-44447254

bowlhead99

caldi9 wrote: »

A lawyer will take the case. Indeed, I will press charges. The broker claims it was an "error" that they did not spot for 3 months.

When you have a really great case for civil damages, a lawyer might agree to take the case on a "no win, no fee" basis, which can be quite useful if you're not bothered about the net cash you get out of it but want to pursue a point of principle.

In this case, I expect the lawyer that you've found will want to pursue it on a "no win, yes fee" basis.