INTL FCStone, the clearing house for James Cordier and Michael Gross’ OptionSellers.com outfit, is attempting to collect from Optionsellers’ clients who lost their entire investment portfolios on margin. INTL FCStone has sent letters to OptionSellers’ clients stating that the “Current Net Liquidating Value is due” and “[a]ll past due amounts are subject to interest at a per annum rate of 1% plus The Wall Street Journal Prime Rate,” in addition to the “costs of collection.”
FCStone is providing account holders until December 15, 2018 to make remittances:
INTL FCStone “recognizes the losses to your account were substantial, and the remaining deficit is in addition to significant cash losses already sustained in your account. In order to provide additional time to transfer funds, IFCF has not demanded interest or fees on any amounts paid to date and does not intend to seek repayment of the interest and collection costs for any deficit amounts paid by December 15, 2018.”
INTL FCStone may have significant litigation exposure in this matter, as it has come to light that the clearing house allowed margin trading through Individual Retirement Accounts (IRAs). Such practice is frowned upon and may make INTL FCStone a target of securities lawyers pursuing these claims.
As a plaintiff attorney, Tom Young has been at the forefront of some of the Nation's worst disasters. In 2015, he was judicially appointed to represent over 200,000 plaintiffs in an allocation proceeding involving a $1.24 billion settlement with Deepwater Horizon contractor Halliburton and rig owner Transocean. Currently, he's focused on representing numerous communities across the country that have been ravaged by the opioid epidemic and are now seeking damages from drug manufacturers and distributors.