Lost all friends boss's money

R

RollTheDice

Hello,

My friend's boss recently gave me $300k to invest it for him. My long time friend works in his firm and they have a very close relationship with each other so he recommended me to his boss given his boss constant dissatisfaction with his portfolio performance. To prove my returns, I just printed out my IB's portfolio Analyst report and gave it to him. He really like the fact that I have a good performance despite never using any leverage. So he decided to invest. He opened an IB account few weeks ago, funded it and gave the password to me.
To invest the money, I just decided to roll the dice and invested all of his money in far out of the money weekly SPY calls. The calls expired worthless few days ago. This man has already lost tremendous amount of money trading CFDs so I thought he has a very high risk tolerance. Plus we had no written agreement whatsoever and I didn't sign anywhere. He just told me he would give me 30% of his profits at the end of each quarter.
Finally a little about me, I personally manage a low 7 figure portfolio and trading is my full time job.
So I just want to know, what is my legal exposure? Thanks in advance.
 
Technically, he should of gave permission legally for you to trade his account, not just handed you password and said have a go.

Nothing on paper, isn't worth the paper it isn't written on therefore legally your scott free!!

Ofcourse if you'd of taken my 300K lost in a few weeks and it was all I had, you wouldn't be worried about legal repurcusions, be more how to dig yourself out of a shallow grave before dying and if you make it, your getting a shovel to your head so don't bother!!

FOOL!!
 
  • Like
Reactions: DDR
Handle123 said:
I would find an attorney as there are too many "maybe's" as he is not from USA if trading CFDs but maybe you in USA? I wouldn't take a chance asking a forum.

Hope your friend still has his job...
More...
I don't live in the US. All parties live in the UK. CFDs are more common than stocks over here however I have never traded them.
 
I worked like a dog for 40 years, living in a studio apartment and eating beans. Recently I retired with a million dollars in savings. I thought...hey 2 million is a lot better than 1 so I flew to Monte Carlo. I walked up to the roulette table and put the whole wad on the black, it turned up red and now I live in a van down by the river.
 
You must log in or register to reply here.
Back
Top