OptionSellers.com Causes Millions in Investor Losses
OptionSellers.com and INTL FCStone Lawsuit and Recovery
Commodities options trading firm OptionSellers.com has lost millions of dollars of investors’ money after engaging in an extremely risky and aggressive strategy involving options on commodities. Shortly after decimating investors’ accounts, Optionsellers.com shut down its website and its social media pages, leaving investors wondering whether they will be able to recover any of their investment losses.
The trading company has notified investors that their money was lost in a “catastrophic loss event.” According to OptionSellers.com, investor assets were lost on a short call position in natural gas that put investor’s dollars at risk and “overwhelmed all risk measures in place.”
OptionSellers.com represented that its goal was “to take an aggressive vehicle and manage it conservatively.” But rather than do that, OptionSellers.com traded uncovered (a/k/a naked) options on various commodities, including crude oil, natural gas, coffee, soybeans, gold and silver. This reckless strategy exposed investors to enormous risk. OptionSellers.com failed to put in place a proper hedging strategy to protect investors from that risk.
OptionSellers.com’s founder, James Cordier, had prior problems. In 2013, the U.S. Commodity Futures Trading Commission (CFTC) charged Cordier, his partner, and former firm Liberty Trading Group nearly $50,000 for improper trading.
Clearing Firm INTL FCStone Played a Role in the Losses
OptionSellers.com clients were required to open accounts with clearing firm INTL FCStone. That firm administered the margin accounts that were required as part of OptionSellers.com’s trading strategy and helped facilitate OptionSellers.com’s commodities options strategy.
Investors Now Owe Money for Margin Debts
The catastrophic losses from the naked options strategy wiped out investors’ accounts. Adding salt to that enormous wound is the fact that many investors now have outstanding margin debts owed to INTL FCStone.
We believe that investors may have viable claims against INTL FCStone for failing to follow applicable margin rules and possibly for failing to conduct proper due diligence on OptionSellers.com and for facilitating OptionSellers.com’s risky options strategy
Individual Retirement Account (IRA) Investors May Have Claims Against INTL FCStone
Certain OptionSellers.com and INTL FCStone customers lost their money in individual retirement accounts (IRAs). There are significant restrictions on the use of margin in IRA accounts and we believe that INTL FCStone failed to abide by those restrictions when it permitted the naked options trading in IRA accounts. IRA investors who lost their money should seek the advice of a lawyer who has experience representing investors in investment fraud and broker negligence cases to discuss their rights.
Speak with an Investment Fraud Attorney
Our AV-rated* lawyers have extensive experience litigating a broad range of investment disputes, including those involving options and commodities. We will aggressively pursue claims against INTL FCStone and any other culpable party to recover your investment losses.
If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of investment fraud or stockbroker misconduct. We’ve recovered more than $100 million in assets lost to investment fraud and stockbroker misconduct.
Contact Dimond Kaplan & Rothstein Today
Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule an appointment for a FREE case evaluation.
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