The investment fraud attorneys at Meyer Wilson have sued the brokerage firm INTL FCStone on behalf of nine families who were devastated financially during an options trading disaster in November 2018.
FCStone handled the trades that James Cordier of OptionSellers.com made for 300 investors. Cordier recruited investors to open accounts with FCStone, promising high returns and vigilant risk management. OptionSellers.com clients were told that Cordier’s strategy was a conservative one with little risk of principal loss. In reality, the options trading that Cordier was doing in these FCStone accounts was not properly hedged in order to provide adequate downside protection. FCStone sat by and watched as OptionSeller.com clients were increasingly concentrated in highly volatile natural gas and crude oil option positions.
On November 14, 2018, natural gas prices spiked and crude oil prices dropped, causing losses to investors that exceeded the amount of value in their accounts. FCStone sweepingly liquidated all accounts, rather than contacting customers and allowing them to meet the resulting margin calls as is required by industry rules.
Meyer Wilson is a national investment fraud law firm that works to protect investors who have been victims of investment fraud and misconduct. If you have suffered financial losses and want to discuss your rights and legal options, give us a call for a free consultation.