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Kiki192

Refund in forex

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One of the inexperienced forex traders whose account I help trade and build for a monthly fee is demanding refund after losing his investment during a volatile period in the forex market. There is a disclaimer that notifies every forex trader about the risk of loss in trading. Every forex trader is aware of this risk. Is it lawful for this client to demand for a refund?

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31 minutes ago, Kiki192 said:

Is it lawful for this client to demand for a refund?

 

Of course it is.  Did you really think there might be a law that prohibited making a demand?  Or was this not the question you intended to ask?

 

By the way, what is "forex"?

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1 minute ago, pg1067 said:

 

Of course it is.  Did you really think there might be a law that prohibited making a demand?  Or was this not the question you intended to ask?

 

By the way, what is "forex"?

Forex is foreign exchange....and why I ask is because he's threatening to sue me in a claim court when the disclaimer obviously says he can't.

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8 minutes ago, Kiki192 said:

I was only told the disclaimer ensures that no one can demand for refund when investment is lost.

 

6 minutes ago, Kiki192 said:

why I ask is because he's threatening to sue me in a claim court when the disclaimer obviously says he can't.

 

The disclaimer might be raised as a defense in a lawsuit and might prevent the plaintiff from suing successfully, but a disclaimer obviously cannot prevent someone from making a demand or from suing.  Anyone can sue anyone for anything.  You probably should refer the litigation threat to your company's legal department and move on.

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13 minutes ago, pg1067 said:

 

 

The disclaimer might be raised as a defense in a lawsuit and might prevent the plaintiff from suing successfully, but a disclaimer obviously cannot prevent someone from making a demand or from suing.  Anyone can sue anyone for anything.  You probably should refer the litigation threat to your company's legal department and move on.

Thanks for making it clear. It's actually my own business I run helping people build their accounts for a fee so I have to deal with it myself. It's not a registered business either. I just want to be sure his claim is total bs or if I should prepare my lawyer as well. He has spammed my mail with so many threats,he even said he'll settle for half the investment.he's even threatened to defame me and ruin my life and my family because I'm a woman.he also calls incessantly and at odd hours. 

 

6 minutes ago, adjusterjack said:

On the other hand, the disclaimer might not be worth the paper it's printed on if the plaintiff can prove that you were incompetent or grossly negligent.

 

 

Then I have proof that the market gapped terribly at that time against all fundamentals. The running trade was already in profits then the gap happened in seconds. Ofcourse huge gaps don't respect stop losses.either he was knows that or he just doesn't care.

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3 hours ago, adjusterjack said:

By the way, do you have an SEC license as a financial advisor?

 

If you are doing this illegally, even market fluctuations might not help you.

 

 

Nope.no licence. Usually I insist on PAMM only so at least the client will know my own investment is also at stake. But this client begged me to help manage his account by logging in with his trading account details. I refused for a long time because I know PAMM protects the account manager as well. He pleaded and pleaded and I eventually agreed. I guess I shouldn't have in the first place

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10 hours ago, Kiki192 said:

my training was very informal

 

Nope.no licence.

 

If that's not illegal, it should be.

 

Bet you don't have professional liability insurance either.

 

Well, what you do about your client's demand is up to you. If you get served a lawsuit, let us know.

 

 

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14 hours ago, adjusterjack said:

 

If that's not illegal, it should be.

 

Bet you don't have professional liability insurance either.

 

Well, what you do about your client's demand is up to you. If you get served a lawsuit, let us know.

 

 

I don't intend to wait to get served. I gonna press charges for verbal assault and cyber bullying for all the numerous abusive emails and threats to ruin me as well as calls at odd hours. He is now threatening to open a facebook page dedicated to me and how I scammed him. If he dares do that,I'm gonna add libel to his charges. I might not know much about  the legality of account management in forex,but I know I shouldn't be threatened by another individual.I know that much. In any case,I don't intend to refund because I'm not obligated to. He even says he has an invoice charged to me that includes his legal fees. How is that possible when I've not even been served any lawsuit talk more him winning the case in court.

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First, you don't get to "press charges".  The prosecutor determines whether it is appropriate to charge someone with criminal charges.  The problem is that you would be contending that you have been illegally practicing securities sales and advice and your illegal practice has resulted in an investor losing his investment.  Now the investor wants his money back and you want him arrested for bothering you.  Good luck with that.

 

If, on the other hand, you intend to sue him for harassment, stalking, libel, etc. you will certainly precipitate a counter suit for the money the investor lost.  That is how you guarantee you will be sued.

 

As far as the odds on your investor recovering his money from you, that is a question of securities law.  I don't believe anyone on this board practices securities law.  I suggest you try to find a lawyer who does specialize in securitites law and talk to him or her.  However, I don't believe your agreement that the investor can't recover his loses from you will hold a lot of water if you are engaged in securities practice without a license.

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11 hours ago, Kiki192 said:

I might not know much about  the legality of account management in forex,

 

You've made that abundantly clear.

 

11 hours ago, Kiki192 said:

I know I shouldn't be threatened by another individual.

 

Threats don't butter any parsnips. So far he hasn't DONE anything actionable. When he does, truth is a valid defense against against allegations of defamation, so is opinion.

If he says you stole his money, that's defamation.

If he says you lost his money, that's fact, not defamation.

If he says you are incompetent, that's opinion, not defamation.

Frankly, I think you have more to worry about than he does since you have admitted that you are unlicensed and had only "informal" training as a money manager.

 

11 hours ago, Kiki192 said:

In any case,I don't intend to refund because I'm not obligated to.

 

That remains to be seen if you end up in court.

 

11 hours ago, Kiki192 said:

He even says he has an invoice charged to me that includes his legal fees. How is that possible when I've not even been served any lawsuit

 

That's just a warning that you could face paying his attorney fees if he wins in court. Collection agencies typically use that ploy to scare or worry people into paying their debts. It often works.

 

I haven't looked it up but it's possible that securities law allows for an award of attorney fees to an aggrieved party.

 

By the way, how much money did you lose for him?

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On 9/29/2017 at 4:53 PM, Kiki192 said:

I just want to be sure his claim is total bs or if I should prepare my lawyer as well.

 

Needless to say, no one here has any idea if the claim is garbage or meritorious.  If you have a lawyer you use regularly, discussing this matter with him/her would be a good idea.

 

 

On 9/29/2017 at 10:26 PM, Kiki192 said:

no licence. . . .  I guess I shouldn't have in the first place

 

I don't know the rules for what does and doesn't need a license, but you really should discuss this with your attorney.

 

 

On 9/30/2017 at 11:24 PM, Kiki192 said:

I gonna press charges for verbal assault and cyber bullying for all the numerous abusive emails and threats to ruin me as well as calls at odd hours.

 

Sigh...there's no such thing in the law as "verbal assault."  Some states have "cyber-bullying" laws.  You didn't identify your state, so we can't tell you if your state has such laws.  Even if it does, I doubt what you've described qualifies.  You're obviously free to block e-mails and calls.

 

 

23 hours ago, adjusterjack said:

If he says you stole his money, that's defamation.

 

Given the context, this is not necessarily true.

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