Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Datek Brokerage $9.95 a trade -- Ignore unavailable to you. Want to Upgrade?

To: Ed Forrest who wrote (13827)	12/17/1999 12:11:00 AM
From: Richard James	Read Replies (2) \| Respond to of 16892

Embezzlement at Datek. Some may recall Datek paying a $50,000 a few months ago following a SEC investigation. My recollection is that Datek had commingled funds from customer's accounts and used them for Datek's own expenses. Datek got off with a slap on the wrist, the $50,000, and a promise to institute proper financial controls. I recall that at the time a lot of people complained about how hard it was to get there money out of Datek. Guess what. I placed a fund request a month ago. Not having heard anything after 3 weeks, I called to be told that the request was denied because the account didn't have sufficient funds, but I that a check would be sent out for the balance. No one ever attempted to explain the failure to notify me that the request was denied. Not receiving a check after another week, and noticing that the funds still showed as being in the account, I called. I was told there was no record of my call last week, that the original request was denied for insufficient funds, but that a check for the balance would be sent. Even though the Datek employee acknowledged, when I asked him to look at the History, that there were indeed sufficient funds when the original request was made, Datek would not agree to pay the cost to overnight the check to me. The matter has been referred for review by SEC Enforcement.