Once the Liquidation commences, the Trustee and the Trustee’s staff close the offices of the brokerage firm and work to take control of the books and electronic records of the brokerage firm. In some cases where the books and records are in disarray, finding and organizing the books and records can take weeks or even months.
Under the supervision of the CIH, the Trustee collects the names and addresses of all clients who have an account with the brokerage firm. The timing of this step depends on the accuracy of the books and records of the brokerage firm and on the information provided by the victims themselves. The trustee is working to complete this as soon as possible and return securities and cash to clients.
When filing a claim electronically, you will be required to upload an official consent form that confirms your identity and the legality of working with the company that is being filed against.
The trustee works to recover assets owned by the brokerage firm and its clients. In some cases, this is due to asset recovery lawsuits.
In a bankrupt brokerage firm with accurate records, the Trustee and CIH may agree to transfer some or all of the client accounts to another brokerage firm. Customers whose accounts are migrated will be notified immediately of the move. Even if the customer’s account is transferred, the customer must still file a claim with the Trustee. After the transfer is made, clients can leave their accounts with the new firm or transfer them to another brokerage company.
If the check is completed in favor of the client, then the funds that were on the brokerage account are returned to him or moral compensation is charged.
Customers have a certain period of time to submit claims. Late filing of a claim may result in the loss of all or part of the claim.
