Feeds

Dopey surgeon loses $200k on dud deal – sues E-Trade, and wins

Stupid greedy people need looking after

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

A stock speculator who blew $200,000 on a foolish dotcom buy has successfully sued online broker E-Trade.

Jay Kiessling was awarded $203,333.15 after a panel of the National Association of Securities Dealers decided E-Trade processed the buy order without caring about the risks for its customer, the Chicago Sun-Times reports.

Kiessling, a surgeon from Alabama, lost the cash two years ago when he bought shares in Theglobe.com, a company that personalizes Web pages.

The company had just ended an IPO at $9 per share, and a brief stock market frenzy sent its share price rocketing. But trading in the stock was halted that day - something Kiessling was not told - and although he bought a stack of shares at between $84 and $86 a share, by end of the day the price had dropped to around $30. (In today's cyber-sceptic market, investors can pick up one of Theglobe.com's shares for around 78 cents.)

Kiessling felt he had been denied crucial market information - and that E-Trade had broken its contractual promise to stop customers from trading beyond their means. He had a margin account with E-Trade, which let him borrow up to half the cost of the stock he wanted from the online broker. At the time of the purchase, his account allowed a maximum $144,000 buy, but E-Trade let the order slip through for around $422,000.

"Be very careful with these online brokers," said Kiessling, who still has an E-Trade account. "When they say they're offering the same service as a [conventional] broker, they're not. You're giving up a lot more than simply high brokerage fees."

E-Trade pleaded innocence, saying its systems could not stop Kiessling's order. ®

Related Stories

E-Trade security hole still not bunged
Psion falls 25 per cent on profit warning
Vodafone and Verizon ditch IPO plans
Wall Street savages Priceline.com

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.