Improper Comingling of Futures and Brokerage Accounts 

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Critical values were miscalculated or otherwise misstated in my Schwab account (e.g., Account Value, Total Cash, and Buying Power). [Section A, #2].  The contorted accounting was caused by comingling the bookkeeping of the Futures Account with the margin account for the brokerage account. [Section A, #3, #5, #6].  It is important to understand that a Futures account is essentially just a margin account designated for Futures transactions and accounting, and brokerages are required to "separately account for all futures customer funds and segregate such funds as belonging to its futures customers." 17 CFR § 1.20.  Commingling Futures positions and obligations with the brokerage's margin account holdings is strictly forbidden.  In addition to obfuscating key account figures, comingling my Schwab accounts also isolated the Futures account - essentially freeing it up so it could be utilized as the conduit through which stolen funds were laundered.     

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Upon the abrupt closure of the Futures account, the account data was retroactively edited to remove any mention of Futures account from the historical balances and account data, thus destroying the evidence of improper accounting. [Section C, #1, #7, #11]. 

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Theft via Untraceable Debt Originating from the Isolated Futures Account

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The isolated Futures account secretly extracted cash from the brokerage account.  Negative values for Futures Buying Power appear even after the supposed closure of the Futures account. [Section A, #4].  At the end of the month, the live account balances were temporarily manipulated higher to match the values reported by the brokerage statement before reverting to an even lower value.  [Section D, #1].  These changes in account value coincided with equal changes to the anomalously stated Futures Buying Power. [Section D, #2].  The account showed “Money Due” equal to the negative Futures Buying Power, yet the total cash for the account remained unchanged, thus lending significant insight into how the contorted Futures accounting operated to conceal theft without visible impact to the brokerage account balances or historical balance data.  This mechanism appears to be the means for stealing and laundering funds associated with unreported transactions.  As long as there was sufficient money in the account, the brokerage account would be debited without any “Money Due” message occurring.  Apparently, they got too greedy and resulted in a deficit that had to be addressed to settle the books for the end of the month.  

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Since historical data was “cleansed” to remove all data pertaining to the Futures account (completely invalid on its face), the evidence of the erroneous accounting and comingling so to was eliminated. 

 

The “Personal Value” balance is supposed to include the total value of all accounts, including brokerage and Futures accounts.  Before the Futures account was opened, there were no such issues with “Personal Value.” [Section A, #7].  After the Futures account was opened, however, the “Personal Value” was persistently stated as “$0.00” while Day Change was “N/A.” [Section A, #7, #8].  Also, the Futures Gain/Loss data was continually “grayed out” to zero, concealing the actual activity in the account.  [Section A, #3-c].  Since the true Total Account Value and Day Change values were inaccessible while the Futures account was active, the missing options positions (indicated by the Inaccurate Transaction Dates in Brokerage Statements) could have been secretly processed through the Futures account - which is just a margin account. 

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Unreported Transactions and Unaccounted Funds... In my CLOSED Futures Account

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The July 2018 Futures statement further affirms that the Futures account was utilized to process unreported transactions and unaccounted funds.​​  Schwab closed my Futures account—abruptly and without explanation—at the end of March 2018, supposedly.  Indeed, I was unable to access any data from that point forward, and Schwab refused to provide the Futures Statements for the one month that it was officially open.  However, over five years later in 2023, Schwab produced Futures account statements which show that the account remained open until at least 2021. [Section A, #1-a; Appendix, 8-27].  Furthermore, the July 2018 Futures Statement reports suspicious, off-setting cash transfers - listed as payments to various exchanges - several months after the supposed closure of the Futures account. [Section A, #1-b].  This directly evidences that my "closed" Futures account was utilized as a pass-through account, presumably to launder stolen funds - as had long been alleged.

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Schwab claims no wrongdoing occurred, period.  They insist that Futures sweeps and other cash transactions appear accurately accounted for by the brokerage statements, but this is clearly inadequate to explain the unlawful commingling, the litany of resulting errors, and the transactions posted to the account after its supposed closure.

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