Help Lack of Follow Through MICHAEL WHITAKER & ASSOCIATES, LLC
 

I am an octogenarians in need of suggestions how best to handle this situation involvingone of my brokerage firms, Michael Whitaker and Associates, LLC.

I have been a client of Michael Whitaker and Associates for well over a decade, and for the first time, I needed to sell stock in what had to be a very timely matter—for the closing of a real estate purchase.

I contacted Michael Whitaker’s office to explain the situation, giving the specific date by which I absolutely had to have the funds available—November 1, 2021—as well as the amount of funds I needed available. No problem, I was told; I was given instructions how to accomplish this.

I followed through on the instructions to the letter, as I could not take a chance on any errors occurring. In fact, I adjusted the date to make it even earlier—October 29, 2021—just in case there was a delay. Again I was assured that the funds would definitely be available even before I actually needed them. To be on the safe side, I verified the dates and instructions with Michael Whitaker’s staff.

To make a long story short: On Friday, October 28, the funds were not available in my checking account from which they were to be wired to the closing company. Figuring on a routine delay, since Michael Whitaker had all the information AND I had gone over it with his staff, on Monday morning, November 1, 2021—the day of the closing—I was not able to wire that portion of funds, as they never appeared in my account!

Urgently I sought to contact Marcia at Michael Whitaker’s office, whom I had been told would be my primary contact person, starting the calling at 9:00 AM, and until 9:45 I kept getting a recording saying that the office would reopen at 9:00 AM. Finally, someone answered, and I said I needed to speak with Marcia immediately.

I was told she was with a client. I explained that this was an emergency situation, to please interrupt her. She finally picked up the phone and told me she would call me back ‘later.’ She finally did call me back and told me she had no idea why the funds weren’t there and she could do nothing about it.

This was a far cry from being told not to worry, that everything would be done as needed, that what I was doing was fairly routine. Unfortunately, Marcia took no responsibility for the major problem about which no one in Michael Whitaker’s office could—or would—do anything about.

Essentially Michael Whitaker’s staff did absolutely nothing and offered no possible solutions. I was left high and dry, facing a closing and not being able to have my bank wire the funds as was required by the company handling the closing. What was I to do? Whatever I did, it was with zero support from Michael Whitaker and Associates, LLC!

The thought crossed my mind: Am I being taken advantage of because of my age, because someone was making the assumption that I would not realize what was going
on? I was unbelievably upset, as I had no idea what to do, and hard as it is to believe, no one at Michael Whitaker’s firm even offered a suggestion! These are the people whom I had trusted with my assets and cash over the years.

I spoke directly with Michael Whitaker as well as several of his staff. He essentially shrugged off the problem—not what I would have expected from a company which I hadtrusted and relied on. Now I’m asking myself if I have any recourse to being treated like this by Michael Whitaker and his staff.The funds are there today—Tuesday, November 2, 2021. But the closing was yesterday. In terms of recourse, I would very much appreciate your suggestions. Thank you.

Sorry you had this bad experience. I hope you didn't lose the real estate sale. But, in terms of recourse against the stock broker, I don't think you have any recourse, unless you have a written contract to deliver the funds by a specific date, and it says "time is of the essence". Otherwise, I think you are out of luck.

What day did you instruct Whitaker to sell the stock? If you instructed them to sell the stock on October 29, 2021, the funds would be credited to your account on that date but not available for withdrawal or transfer until two business days later. I takes two business days for the transaction to 'settle' at which time the funds become available for withdrawal...which would have been November 2, 2021.

If you read the original post she told the broker the funds should be in her bank account by October 29, and they said "no problem," so obviously they were told to sell before October 29. So what was the date they were given the "sell" order? If they couldn't fulfill that order they should have said so. They probably forgot. If I were the OP and this happened, that brokerage would be immediately terminated.

I just received this information -
Trade Date: 10/20/2021
Settlement Date: 10/22/2021

I have had more bad experiences with brokers then good. That said in my opinion the OP shares most of the blame for cutting the transition date too close to the closing. Myself would have made sure the money was to be in the bank at least ten business days ahead allowing for time to unscrew a major problem if encountered. I see no reason to play the senior card here. Try closing an account someday and watch how long that takes.

The dates I was given to start the transaction came from Michael Whitaker’s Office.
 

The date I was given to complete this transaction, came from Michael Whitaker’s office. I had No reason to believe I could not trust them.

Based on the settlement date, they may have violated SEC rules by not providing the funds to you in a timely manner. You could report them to the SEC. But, if you lost money in a real estate transaction, I don't think you will be able to recover anything from the stock broker.

I will look into this. SEC.

I'm having trouble following all the dates. The first question is do you have any proof. The second question is were you damaged. As a stock broker they are or should be insured,The sale of the stock was it at market price or at a minimum price? Wired funds of a significant amount, more that you have in your bank account, I think the bank will not allow you to use the funds immediately-protection from all the scams going on.

Hopefully, besides the stress, you were not damaged.

Last year I had Edward Jones sell of a bunch of stuff and they did it a day late resulting in a loss of $6,000.00 due to a drop in the market value that day. The agent that I dealt with for years absorbed the $6,000.00 and brought my account up to where it should have been if sold the day before as instructed. It's nice when someone you trust with money is honest enough to admit they made a mistake.

The SEC is beyond useless. More interested in stupid 10k footnotes. Speaking from experience. Move your account immediately

retiredguy123,

I am asking you this purely academic question because it seems like you know stuff. . .

In a circumstance such as this one, should? would? could? the title company have stepped up to arrange for a dry closing?

OP,

I don’t know anything about whether you have any legal recourse or not. But I think if I were you, I would find another broker. The new broker should handle all the transfers for you so you never again have to talk to the one who dropped the ball. But make sure the new broker explains each type of transfer being used, and why, before you sign off. Different types of accounts might require different types of transfers.

Yes, there could have been a dry closing, where the funds are not disbursed immediately. Proof that the stocks were sold should have been enough to justify it. Another option would have been for the stockbroker to provide a short term loan to the OP to handle the closing. Or, the closing could have been delayed for a day. These things are usually not cast in stone. And, we don't know if the OP actually lost anything as a result of the funds not being available.

My first call to Michael Whitaker’s office was nearly one month before I needed the funds. I was told on what date to come to their office, so that I would get the monies for the closing in time.
I thought they were competent, little did I know.

My first call to start the transaction was nearly one month before I needed the funds.
I trusted them “MY ERROR “, next, thinking they were competent.

The stock was sold on 10/20/2021,
Settlement date was on 10/22/2021.
Closing date was on 11/01/2021.

I am learning from the responses that I put my trust in the worse possible hands.

I am not looking forward to that.
Based on this experience - I will have to do my homework, and perhaps seek legal counsel.

How do I find an excellent broker who has the knowledge to follow through on request, is competent and upstanding.

Edward Jones sounds like someone who I could trust.
By his actions, I would feel he is honest.

If you do decide to transfer your investments, you will need to spend some time doing your homework to be sure you are comfortable with your choice.

Because you have posted the story here in a public forum, the exposure makes it possible that you might be contacted, via PM, by somebody offering “help.” I would NOT respond to that type of solicitation. You want to be the one to initiate contact for anything financial.

There are “bricks and mortar” offices for Fidelity and Schwab in TV — along with other “knowns” — where you could probably make appointments to talk with someone. That could be a start. If you proceed with a plan to talk to brokerages about transferring, it is probably a good idea to provide specifics at the appointments so the broker can see if transfers can be made in-kind and what type of accounts you have — taxable, tax-deferred, etc. so they can explain how the transfers need to be done.

If you decide you really want to part ways with your current broker, please take the time to be sure you have found your next comfort-zone. Could this be a “better the one you know” circumstance? Only you can decide that.

I looked at the website for the office you are with now, and I see that there are other things offered in addition to investments — under the same roof — Eldercare attorneys, CPAs, insurance, etc. (And they clarify the separation of those offerings in a legal statement on the site.)

If you use other services there, that sounds convenient, and you might be happy with those, but aggravated just at the dropped ball for your closing. I certainly understand your disappointment and frustration with what happened there. (I hope your closing went through.)

I also understand how going through the process of carefully finding a new broker could feel unwieldy at this point, especially considering that it seems you have had a decent relationship up until now. But according to your post here, it sounds like their office was dismissive, so it might be worth spending the time and effort to look around for another place.

. . .But, ya know. . .I would think that your broker, as a professional, should contact you with an apology and an explanation of what the heck went wrong. Maybe communication from him could calm the waters — and you would not need to feel like you have to do anything further. Sometimes, when all is said and done, it does not end up being about the mistake. It’s about how the mistake is handled by the one who made it. (But maybe that ship has sailed.)

Does being Elderly ….
 

At this time I am doing research on what options I have. At the same time beginning to make a list of questions.

I have not received any phone calls from Michael Whitaker. Apology - since I have not received a call I don’t know if they have any remote feelings of responsibility.

They are in business to make money, granted that is what businesses are for, since I have NOT received any phone calls from Michael Whitaker’s office - I feel they put making money before being professional.

Your statement about Michael Whitaker responding as a professional, lack of communication from Michael Whitaker says a lot about him and his firm being professional.

At this time I feel taken advantage of because I trusted them. I was verbally guaranteed that everything would be accomplished.

I also wonder if their lack of follow up in this matter has to do with my age - I am 80 years old.

Am I a “sitting duck”, is the question I ask myself because I am elderly.

What to do
 

Lack of professionalism is surely one of the problems here. You should have followed up on a day of the sale and two days later to make sure the money would be transferred to your bank. That being said it was not your era but definitely there is also. You should send him a certified letter saying you want to know what the reason was for the lack of transfer of the money and that you're reporting this problem to the SEC also. If you get a lawyer involved I guarantee you it will cost you 5 to $10,000 for the lawyer to do virtually nothing for you other than write letters. As you will find out there are dozens of brokerage firms that would love to get their hands on your account. . I am presuming you are still senile to, no offense. It certainly was not having to do with your age but simply them screwing up. But every error requires A reaction .

Move on from MICHAEL WHITAKER & ASSOCIATES, LLC. File judgements with state, Feds, and BBB against them.

It seems obvious that you are working with a firm that is not responsive to your requests. You may have difficulty transferring your securities to another firm as they may drag their feet (my previous experience). Being older may or may not have anything to do with that; however, if you have significant securities, they won't want to lose a long-term client. You can check on the FINRA website to see if the broker is registered. (google: FINRA). They also have a way to manage complaints which it seems that you don't have available to you. They can also tell you if the broker, who should be registered with FINRA, follows recommended practices.

That all said, please don't advertise your age as it could cause others to target you. We're all getting older, but hopefully, we're all getting smarter.

Help. Lack of follow through Michael Whitaker.
 

Report them to FINRA, FL Consumer Protection Division of the AG’s office, and the BBB.
You would not get this treatment at Edelman Financial Engines.

Get another broker. I use Schwab very easy to transfer money and buy and sell stock.

allow me to recommend Fidelity- there is always someone to talk to, & have trusted them to take care of these matters. i'd go in person, not online or by phone, & MEET THE ACTUAL PERSON. am so very sorry for you-this must suck

Fire them and use someone else.

AJ32162 stated it correctly. you never get your money the same day you sell investments. Some brokerages allows you to sell then buy stocks the same day but never allow you to take the money out.
One interesting note that makes this whole story fall apart was that the OP stated he checked his "checking account" for the funds that he sold and they weren't there. You know that it requires a move from the brokerage account into a checking account which can take a day or 2 in itself especially if they have to transfer the funds to another bank. Or, the OP is confused and thinks the brokerage account where his funds come out of is a checking account, either way, doesn't look good for the OP.
I use a brokerage firm that can wire directly out of my taxable accounts. So when I need to wire money, I talk with my brokerage firm and tell them I need you to wire the funds a day or 2 before the closing date and they will tell me when I need to sell so the funds are ready for wire in time. Done this a dozen times with no issues but I always wire the funds days before they should be there

Your financial institution (by treating you like this) is telling you something you need to listen to! They don’t care about your business - time to draw your money out and go to someone you can trust!!

The Vicar has told us that the settlement day was Oct 22nd. But he has not told us where that cash from the sold stocks was deposited. Did it go into a cash account at the broker? Was the broker told to close out the cash and transfer it to a second institution? Did he have a checking account at the broker?

We are told in post #1 that he expected it to be available in a checking account from which it was to be wired for the closing. But then in post #15 he writes that he was going to go to their office to pick up the money. Those two scenarios do not seem identical. Perhaps the going to the office was to do some paperwork to get the sale arranged not to pick up a check?

Either way, you have no damages unless you suffered a loss. Did the closing go through either on the 1st or the 2nd? Or did you loose the opportunity to buy the property?

Brokerages carry "Errors and Omissions" insurance for protection when they make a mistake.

The location of the cash between Oct 22, the settlement date, and Nov 1, the closing date needs some exploration. Either way, you were poorly treated. Perhaps you didn't understand some requirement or where to find your money. But I think it was their obligation to clearly explain to you how the cash was getting from your account to the closing.

Who was your broker. So good to hear of a positive experience!

Why would you trust a small time investor?
 

Never had a problem with Fidelity…..

Complaint
 

You do have recourse and there is a procedure for handling your complaint. As soon as you voiced your complaint to them, they should have followed the procedure for handling it, which is dictated by their Broker/Dealer's Compliance Dept. and the SEC. This brokerage firm, Whitaker & Associates, must process all securities trades through their Broker/Dealer (B/D). The B/D is listed on your monthly statement. Their B/D is Newbridge Securities Corp and the phone number is 877-447-9625. Ask for the Compliance Dept. I was a broker for 35 years before I retired. My B/D was very strict (a good thing!) and I was expected to report to my B/D if I ever had a client complaint lodged against me. (never happened) The fact that you complained to many people at that firm, including Michael Whitaker, and no one took you seriously is not at all acceptable. Calling the Compliance Dept at the B/D should get the ball rolling. You can always check out brokers and broker/Dealers through FINRA. Just type a person's name in the search box and you can see if there have been other complaints. In searching for Newbridge Securities Corp I discovered some interesting info, such as a $225,000 fine assessed against them by the SEC in2019. This may be a B/D that doesn't properly supervise the brokers who place business through them. If you don't get a satisfactory answer from the Compliance Dept then write again on this forum and then I'll give you step 2. Step 1 should work. Good Luck!




QUOTE=VICAR OF DIBLEY;2024610]I am an octogenarians in need of suggestions how best to handle this situation involvingone of my brokerage firms, Michael Whitaker and Associates, LLC.

I have been a client of Michael Whitaker and Associates for well over a decade, and for the first time, I needed to sell stock in what had to be a very timely matter—for the closing of a real estate purchase.

I contacted Michael Whitaker’s office to explain the situation, giving the specific date by which I absolutely had to have the funds available—November 1, 2021—as well as the amount of funds I needed available. No problem, I was told; I was given instructions how to accomplish this.

I followed through on the instructions to the letter, as I could not take a chance on any errors occurring. In fact, I adjusted the date to make it even earlier—October 29, 2021—just in case there was a delay. Again I was assured that the funds would definitely be available even before I actually needed them. To be on the safe side, I verified the dates and instructions with Michael Whitaker’s staff.

To make a long story short: On Friday, October 28, the funds were not available in my checking account from which they were to be wired to the closing company. Figuring on a routine delay, since Michael Whitaker had all the information AND I had gone over it with his staff, on Monday morning, November 1, 2021—the day of the closing—I was not able to wire that portion of funds, as they never appeared in my account!

Urgently I sought to contact Marcia at Michael Whitaker’s office, whom I had been told would be my primary contact person, starting the calling at 9:00 AM, and until 9:45 I kept getting a recording saying that the office would reopen at 9:00 AM. Finally, someone answered, and I said I needed to speak with Marcia immediately.

I was told she was with a client. I explained that this was an emergency situation, to please interrupt her. She finally picked up the phone and told me she would call me back ‘later.’ She finally did call me back and told me she had no idea why the funds weren’t there and she could do nothing about it.

This was a far cry from being told not to worry, that everything would be done as needed, that what I was doing was fairly routine. Unfortunately, Marcia took no responsibility for the major problem about which no one in Michael Whitaker’s office could—or would—do anything about.

Essentially Michael Whitaker’s staff did absolutely nothing and offered no possible solutions. I was left high and dry, facing a closing and not being able to have my bank wire the funds as was required by the company handling the closing. What was I to do? Whatever I did, it was with zero support from Michael Whitaker and Associates, LLC!

The thought crossed my mind: Am I being taken advantage of because of my age, because someone was making the assumption that I would not realize what was going
on? I was unbelievably upset, as I had no idea what to do, and hard as it is to believe, no one at Michael Whitaker’s firm even offered a suggestion! These are the people whom I had trusted with my assets and cash over the years.

I spoke directly with Michael Whitaker as well as several of his staff. He essentially shrugged off the problem—not what I would have expected from a company which I hadtrusted and relied on. Now I’m asking myself if I have any recourse to being treated like this by Michael Whitaker and his staff.The funds are there today—Tuesday, November 2, 2021. But the closing was yesterday. In terms of recourse, I would very much appreciate your suggestions. Thank you.[/QUOTE]

Plus, with a company like Fidelity, or Schwab you can go on line to look at your account and trade, if you wish. And you can always run down to their office if you need in-person help.

Time for a new broker.

Check out Charles Schwab.

You need to go NOW, TODAY, and find a more stable company. The one you are with is part of the Newbridge Family of investors and the look is not good. You have a tiny local family-run advisor (at least half the employees are family) supported by a mid-size investment house with weak financial results.

More 'doubt' about this broker-dealer's future - InvestmentNews


At the end of 2019, the firm had an accumulated deficit of $9.2 million and net cash used by operations, a cash flow metric, of $928,000, according to its annual audited financial statement on file with the Securities and Exchange Commission.

That puts the firm in an unenviable position, according to the filing. “These conditions raise substantial doubt about the company’s ability to continue as a going concern,” according to the filing, known as a Focus report. Although Newbridge filed the report at the end of February, it did not become publicly available until recently on the SEC’s website.

The firm has about 175 registered reps and 50 branches.

In the Focus report for 2018, Newbridge’s auditor said the firm had sizable financial problems. “The company has a large accumulated deficit and negative cash flows from operations,” according to a letter from Liggett & Webb, which was addressed to the firm’s board

More bad -

In this article you will find a running list of links to news stories about Newbridge Securities customer complaints and regulatory actions. We have also documented several of the most significant cases involving Newbridge Securities broker misconduct.

Newbridge Securities: Information on Complaints & Regulatory Actions