Consumer Law, Warranties Joint Tenancy of Stock Account

[SteveRuby]

I reside in New York State and know this issue falls under the state's jurisdiction. My stepfather, sister and I are joint tenants on a stock account of approximately 1500 shares valued at around $100,000. Almost two years ago, I put a stop trade on the account because our stepfather was attempting to cash out the entire account and keep all the money. He claims to have misplaced the certificate needed for the splitting of the stock and the brokerage that holds the account charges over $3000.00 for the issuance of a new certificate. He has been in tremendous financial trouble and has, unfortunately, resorted to desperate means to raise cash. He has multiple liens on his remaining assets and has even resorted to embezzlement and forgery. One year ago, I won a case against him in which he stole money from me. I share this background because it's important to what is now transpiring and why I'm so overly cautious.

My stepfather has a very shady partner who has contacted me with the news that the former has sold his share of the JT to him, the partner. He faxed a statement that was signed by my stepfather before a notary public attesting to this supposed sale. Now, the partner wants to dissolve the joint tenancy and my sister and I are VERY trepidatious. We both have spent so much on legal fees concerning other problems with my stepfather and are now pretty tapped out, so a lawyer may be a distant luxury at this point. Neither of us is versed in law and we feel very vulnerable as he (stepfather) once came right out and stated that he'd "get all of it".

Another alarming aspect: the partner has offered to sell his third to me for a reduced price!

So, my questions:
1) What kind of proof do we need to be certain that the shares were indeed sold to this partner? As I understand it, the broker has no record because any changes have to be entered after the stop trade is lifted.
2) Do we have to dissolve the account if two of the tenants (sister and self) don't agree to it?
3) Are there any suggestions as to how we can protect ourselves if we do decide to dissolve the account?

If any more info is needed to help address this issue, please let me know.

In advance, I thank you.

 

[army judge]

Notarized documents are useless. If I were you, I'd ignore the scammer's demands. I'd also contact the brokerage.

In the long run, you might be better served to give your father 500 shares and be done with him forever. Otherwise, he'll keep trying these "cons"!

 

[SteveRuby]

Thanks Amy!

Notarized documents are useless. If I were you, I'd ignore the scammer's demands. I'd also contact the brokerage.

In the long run, you might be better served to give your father 500 shares and be done with him forever. Otherwise, he'll keep trying these "cons"!

I'm a novice at all this, but I had a feeling the notarized docs were meaningless. The tension of all this has convinced me to take my third and move on. I just want to make sure I do it right.

 

[army judge]

I'm a novice at all this, but I had a feeling the notarized docs were meaningless. The tension of all this has convinced me to take my third and move on. I just want to make sure I do it right.

Instruct the brokerage to divide the stock shares into 500 share lots for each of you. You and your sibling make a majority, if a vote is required.

That way you get him out of your pocket for good!

 

[SteveRuby]

Instruct the brokerage to divide the stock shares into 500 share lots for each of you. You and your sibling make a majority, if a vote is required.

That way you get him out of your pocket for good!

I spoke with the brokerage rep about getting the ball rolling on this. There are lots of forms to sign and have medallion stamped by all three of us. Being that my stepfather has declared bankruptcy, I'm curious as to whether his stake will go to creditors and whether that will cause him to be reluctant to dissolve the JT. We'll see.

Thanks again Amy!

 

[army judge]

I spoke with the brokerage rep about getting the ball rolling on this. There are lots of forms to sign and have medallion stamped by all three of us. Being that my stepfather has declared bankruptcy, I'm curious as to whether his stake will go to creditors and whether that will cause him to be reluctant to dissolve the JT. We'll see.

Thanks again Amy!

If he's had his 341 hearing, I doubt the creditors will catch wond of it.
But, it all depends on what type of BK he filed.

This question is asked at all 341 hearings:

When you filed your petition, did you have:

a. any cash on hand?
b. any U.S. savings bonds?
c. any other stocks or bonds?
d. any certificates of deposit?
e. a safe deposit box in your name or in anyone else's name?

I wonder what he said?