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FRAUD
Expose Truth.Fight Injustice.Demand Action.
Suspected Fraud in Your Account?
Here's What to Look For...
Unrecognized Losses in the Brokerage Statement
When losses are not recognized as "Realized Losses", this creates a vulnerability that can be exploited to conceal theft by overstating the profits in the account.
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In this section, we'll see that:
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1. Expired positions were reported as "Active Investments" in the Brokerage Statement
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2. The losses associated with those positions are missing from the Realized Gain (or Loss) accounting.
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Check your own records to see if transactions are reported late, or in the wrong period - especially pertaining to Options Expirations! If there are any discrepancies, then its worth the time to inspect the Gain/Loss accounting to verify whether the transactions are included. If you think may have something, and want me to take a look, please contact Charles Fraud.
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Expired Positions Reported as Active Investments
In the March Brokerage Statement, there are expired positions that are nonetheless reported in the "Investment Detail" section as as active investments." While the expirations are reported in the April Brokerage Statement, as shown further below, these positions are never reported in the "Realized Gain or (Loss) accounting",
The expirations of these options contracts - closing the positions - are reported in the April Brokerage Statement but their Trade Date and Settle Date (3/29/2018 for each) indicate that they should have been reported in the March Brokerage Statement.
​ Perhaps there could be a plausible explanation as to why these Expirations are reported in the April Brokerage Statement, but these positions are never reported in the "Realized Gain or (Loss)" accounting (of either the March or April statements). So, without any doubt, there is a problem here. ​​​​
The Losses are Never Realized in the Brokerage Statement
Neither the March or the April brokerage statements report the positions in the "Realized Gain or (Loss)" accounting, and thus the Realized Gains appear overstated. But consider that the discrepancy represents funds that really did exist, money was generated by transactions that are missing from the record. This explains how theft can be carried out in a clandestine manner, leaving behind only subtle "recordkeeping errors" in the official records.
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The losses from those expired options, $45,236.01, are never accounted for as “Realized Losses” by the Brokerage Statements. While the error was "fixed" so as to not appear in the 1099-B Tax Filing, the discrepancy yet remains with respect to the brokerage statements:​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​
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If you identify similar errors concerning the Gain/Loss figures in your Brokerage Statements, it is a red flag for fraud, and it deserves further investigation
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Check your own records. If you can identify the same errors, or if you are unsure and want a second opinion, please contact Charles Fraud.
