I knew what you were doing and it is a violation of the '33 Securities Act. You are putting no money down in order to buy stock.
...This activity is similar to check kiting and if intent to defraud can be shown, it is a felony. Since I'm not a lawyer, I strongly suggest you contact one knowledgeable about securities law.
I have a mortgage, which I have once refinanced. I also have investments. Am I violating the law, since I owe someone else the money and therefore I'm using their money, not mine, until I pay off the mortgage? Would I have been able to pull out extra during the refinance and put it in the market? What about a Home Equity Loan? What about one of those stupid over-100% "Equity" Loans? If a person pulled out $20,000 to put in a pool and also bought $20,000 worth of stock, are they going to jail? Did they put the $20,000 borrowed into the pool or into the stocks? Or, because they commingled the money, is it all tainted? |
