What legal action could I take, if any?

Ive been trading stocks for the past two years or so and I've done very well for myself. Ive been with the same broker the entire time under a personal account. My accountant suggested I create a business so I can write off some of my expenses. So after doing so, I closed my personal account with my broker and set up an account under my business name. I funded the account with the amount needed to legally day trade and my broker told me I would have to wait a while for all my paperwork to be processed through the IRS and he would call me when I could start trading again. Weeks past with no response. I tried calling several times and he seemed to avoid my calls or just said my account wasn't ready when I did get a hold of him. I even inquired about him releasing me from our contract due to the long delay and he refused unless I payed a huge percentage of my account value. So I backed off and patiently waited. Over 4 months passed when I finally got a call from my broker who told me their firm was shutting down. He then went on to admit to me that my account had been good to go soon after I opened it but their firm was being audited because of some shady business practices and he needed a few accounts with over $25k in them so they would appear legit. So basically, I was lied to and kept from my means of income for over 4 months and he withheld my $30k wrongfully, in my eyes. The money is insured so I will get it back, but even for that I have to wait until February. So, what legal action could I take against either my broker or his firm, if any?

Public Comments

1. You have that kind of money you can get a lawyer. Don't bother posting here. Get some one who knows how these criminals work, sue their asses off, and retire.

2. It sounds like the breached your contract by not providing the financial services you were paying for. You have a basis for a lawsuit, but if their business collapsed as it sounds like it has, they may have no assets left for you to sue for.