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Tuesday, October 22, 2019

Two allege they lost money in TD Ameritrade Inc. trading strategy

By Louie Torres | Feb 2, 2018


CHICAGO – Two Illinois residents allege that they lost money in a trade strategy because facts were omitted about the risks of it.

Thackery S. Gray and Yelena F. Gray filed a complaint on behalf of themselves and all others similarly situated on Jan. 19 in the U.S. District Court for the Northern District of Illinois against TD Ameritrade Inc. and Sheaff Brock Investment Advisors LLC alleging breach of contract, breach of fiduciary duty and other counts.

According to the complaint, the plaintiffs allege that participated in the defendants' "put options income" trading strategy that Sheaff Brock executed on TD Ameritrade's platform. They allege that "defendants stated that the 'put options income' strategy was conservative, low risk and involved investing in 'out of the money puts on high quality equities.'"

The plaintiffs allege this trading strategy was actually aggressive and high risk and that they have lost "significant amounts of money" as a result.

The plaintiffs allege the defendants misrepresented and omitted facts about the strategy's risks.

The plaintiffs hold TD Ameritrade Inc. and Sheaff Brock Investment Advisors LLC responsible because the defendants allegedly made unwarranted claims regarding their scheme where they promised the plaintiff that their money would grow. They also failed to inform the plaintiffs regarding the risk involved in participating in the said scheme.

The plaintiffs request a trial by jury and seek judgment against the defendants, compensatory damages, injunctive relief, court costs and any further relief the court grants. 

They are represented by Edward Wallace and Andrew D. Welker of Wexler Wallace LLP in Chicago; Charles J. Crueger of Crueger Dickinson LLC in Whitefish Bay, Wisconsin; and Sean M. Sweeney and Patrick O'Neill of Halling & Cayo, S.C. in Milwaukee, Wisconsin.

U.S. District Court for the Northern District of Illinois case number 1:18-cv-00419

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U.S. District Court for the Northern District of Illinois

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