#11
pages 27-28

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The “Investment Detail” section of the March Statement reports six expired Options positions as active investments with Market Value worth $1886 (the contracts expired worthless on March 29th.)   The “Unrealized losses” associated with these positions were never accounted for as “Realized Losses.”  

EVERY Short Sale is reported inaccurately by the “Realized Gain or (Loss)” section of Schwab’s Brokerage Statements as well as the 1099-B Tax Statement.  The positions are reported with “Opened” and “Closed” dates that are different from those reported by the “Transaction Detail.”  The FINRA disciplinary action against Barclays Capital published in June 2023 concerned a similar pattern of errors that, as a result, caused positions to be omitted from the official records.

Several options positions are reported with “Opened” and “Closed” dates that are AFTER the expiration date for the options contracts.

The difference between the “Total Investments Purchased” and the total “Cost Basis” reported by the March Statement cannot be explained by “commissions and fees” as Schwab has suggested.  The total discrepancy is $3,092.84.

The March Statement reports the adjusted Cost Basis for positions with “Wash Sale Disallowed Losses”, however the unadjusted Cost Basis is not reported, nor are the adjusted figures identified as such, deviating from Schwab’s reporting protocols, and the total amount misrepresented is $2,702.27.

The “Excel Spreadsheet Data” downloaded from Schwab’s website in April 2018 contains several flaws, including further affirmation of the improper accounting of “Wash Sale Disallowed Losses” (presented above in #5), wildly inaccurate Gain/Loss figures, and “Transaction Closed Dates” missing for the majority of the transactions reported (similar to issue identified in the TD Ameritrade records for 2016-2017).

The proceeds of one of the misreported Short Sales in the “Realized Gain or (Loss)” accounting, $5,795.11, is also the sum of the two ‘unrelated’ discrepancies described above, $2,702.27 + $3,092.84.

The February Statement is a complete deviation from Schwab’s Brokerage Statement format and omits critical account balances.

The hastily altered February Statement appears to be concealing $9,999,999.00 transferred into the account on February 28 and held as “Cash on Hold” until March 6.

The March Statement was altered to omit he “Transaction Detail - Transfers” section.

The inconsistent accounting for the Bank Sweep Feature also indicates issues with the date and timekeeping.

Schwab Internal Records – Detailed Balances generally correspond to the Official Records and the other Historical Data, but there are nonetheless a few indications of the record having been altered and manipulated.  Also, Schwab continues to withhold the records for April 2018, so the data supposedly corroborating the legitimacy of the official records is itself incomplete.