Old Records Help
- Thread starter Dustin
- Start date
Actually according to this NASD press release it sounds like they were shut down:
I think I'm S.O.L. :-(
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DAY-TRADING ENFORCEMENT ACTIONS ANNOUNCED TODAY
1. Landmark Securities Corporation and James C. Gillock, III - Case No. C05010022
Landmark Securities Corporation and James C. Gillock, former president of Landmark â findings include:
The firm, through Gillock, used advertising materials that contained misleading statements regarding customers' access to the markets; inappropriately implied that customers were employees and that they would earn a high income; and misrepresented the risks of day-trading;
The firm, through Gillock, allowed an individual to supervise day-trading activities while not properly registered;
The firm, through Gillock, loaned funds to a customer for the purpose of meeting a margin requirement;
The firm, through Gillock, paid securities transaction-related compensation to an unregistered entity; and
The firm committed short sale and trade reporting violations.
Landmark was expelled from membership in the Association. Gillock was fined $50,000 and suspended for two years in a principal capacity and for six months in all capacities. He is further required to requalify as a General Securities Representative by taking and passing the Series 7 examination, prior to acting again in that capacity.
http://www.nasdr.com/news/pr2001/ne_section01_030.html
I think I'm S.O.L. :-(
-------------
DAY-TRADING ENFORCEMENT ACTIONS ANNOUNCED TODAY
1. Landmark Securities Corporation and James C. Gillock, III - Case No. C05010022
Landmark Securities Corporation and James C. Gillock, former president of Landmark â findings include:
The firm, through Gillock, used advertising materials that contained misleading statements regarding customers' access to the markets; inappropriately implied that customers were employees and that they would earn a high income; and misrepresented the risks of day-trading;
The firm, through Gillock, allowed an individual to supervise day-trading activities while not properly registered;
The firm, through Gillock, loaned funds to a customer for the purpose of meeting a margin requirement;
The firm, through Gillock, paid securities transaction-related compensation to an unregistered entity; and
The firm committed short sale and trade reporting violations.
Landmark was expelled from membership in the Association. Gillock was fined $50,000 and suspended for two years in a principal capacity and for six months in all capacities. He is further required to requalify as a General Securities Representative by taking and passing the Series 7 examination, prior to acting again in that capacity.
http://www.nasdr.com/news/pr2001/ne_section01_030.html
I suggest emailing Don Bright because he is in the business and may know someone or something that can help you. I am guessing that even though the firm went under, they still are required by law to maintain records for a certain amount of time. I would further guess that because that there was litigation involved that getting rid of any records that they have on customers would be a criminal offense. But I know nothing of these matters and I am probably all wet. None the less some one like Don could steer you in the correct direction.
Dustin, they should have retained any records for at least 7 years. But then again that is the same as saying that all drivers are carrying auto insurance.
My first step would be to contact the agent performing the audit to explain your situation. I would also suggest consulting a tax attorney for representation. Either way the agent should give you some time to collect the necessary data. If the your copy of the records were DESTROYED, STOLEN or something other than thrown out the IRS should allow you to use a reasonable basis for calculation of gains and losses. This would be more common with someone who held a stock for 30 years with a DRIP, but if you had a fire or something that is reasonable.
For instance, if you gave your broker a check to fund your account for 50K and you withdrew 100K the gain could be roughly calculated at 50K. And really this number should foot pretty closely to your 1099 or K-1 or W-2 or whatever you got from them. If it does not that may be the trigger for the audit.
The second concern that I have is that they may be looking at your "business expenses" as a trigger for the audit more than your trading.
Now for the company itself, you may want to start with the NASD or SEC and see if you can get in touch with the agent who closed the doors and find out where the records might be. I would also think that the companies creditors, auditors and insurance companies would require some maintaince of and have limited access to the records. But I suspect that without an attorney they will not just send you a copy.
Best of luck.
My first step would be to contact the agent performing the audit to explain your situation. I would also suggest consulting a tax attorney for representation. Either way the agent should give you some time to collect the necessary data. If the your copy of the records were DESTROYED, STOLEN or something other than thrown out the IRS should allow you to use a reasonable basis for calculation of gains and losses. This would be more common with someone who held a stock for 30 years with a DRIP, but if you had a fire or something that is reasonable.
For instance, if you gave your broker a check to fund your account for 50K and you withdrew 100K the gain could be roughly calculated at 50K. And really this number should foot pretty closely to your 1099 or K-1 or W-2 or whatever you got from them. If it does not that may be the trigger for the audit.
The second concern that I have is that they may be looking at your "business expenses" as a trigger for the audit more than your trading.
Now for the company itself, you may want to start with the NASD or SEC and see if you can get in touch with the agent who closed the doors and find out where the records might be. I would also think that the companies creditors, auditors and insurance companies would require some maintaince of and have limited access to the records. But I suspect that without an attorney they will not just send you a copy.
Best of luck.