Dispute with Fidelity Investments - Boston

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Mar 5, 2018
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#1
This is the letter I sent to Ms. Elizabeth Nsahlai (Assistant Attorney General) of the Attorney General’s office – Boston regarding my dispute with Fidelity. The AGO - Boston office has been working to mediate this issue with Fidelity for the last 7 months with no success. Fidelity denies any wrongdoing.

Dear Ms. Nsahlai:
I request you to ask Fidelity whether the following funds in both my Simple & Roth IRA were requested under my log-in.
FCNTX - Fidelity Contra fund
FLPSX – Fidelity low priced stock
FIDSX – Fidelity Select Financial Services.
I never called Fidelity to purchase these funds & I could not have logged in since I have no knowledge of these funds. I am absolutely positive that you will not find these funds under my log-in or from a call placed by me since I have no knowledge of these funds.
Simple IRA
May I request you to ask Fidelity to review the dates of the following:
I made only one call to sell the FF2025 & purchase the FF2050. Why were they sold on three different dates that were months apart? The entire FF2025 should have been sold on January 5, 2009 & the entire proceeds should have been reinvested in 3 or 5 business days (by January 10, 2009) in the FF2050. Instead they were sold months apart when the price had fallen & only partially reinvested months later on random dates into funds not asked for instead of the FF2050. The FF2025 sold on 4/17/2009 & 05/1/2009 for $2,520.00 & $2,060.15 at a total loss of $2,790.53 were never reinvested in any fund but remained in cash until now. The open orders which Fidelity claims they were confused about would not have existed if they had executed the orders in time since there would have been no cash available.
I am giving the details below:
On January 5, 2009, the FF2025 was sold for $3,500 for a loss of $1,581.05. This should have been reinvested in FF2050 in 3 business days (or at least by January 10, 2009). The open order is dated January 22, 2009 which is 17 days later than the sale date. If it had been reinvested as per Massachusetts business law in 3 business days, there would have been no cash available for the open order.
Again, on April 17, 2009, the FF2025 was sold for $2,520 for a loss of $1,209.48. This should have been sold in January 2009 instead of April 2009.This should have been reinvested in FF2050 in 3 business days (by January 10, 2009). The open order is dated April 29, 2009 which is 3 months later than the sale date. If it had been reinvested as per Massachusetts business law in 3 business days, there would have been no cash available for the open order.
On May 1, 2009, the FF2025 was sold for $2,060.15. This should have been sold in January 2009. This should have been reinvested in FF2050 in 3 business days (or by January 10, 2009). The open orders were entered on May 6 & May 7, 2009. . If it had been reinvested as per Massachusetts business law in 3 business days, there would have been no cash available for the open order.

Roth IRA
I request you to review the dates of the following:
In the Roth IRA, the FF2025 was sold for $5,752.90 for a loss of $2,286.60 on December 8, 2008, December 9, 2008, & December 17, 2008. Why were they sold on three different dates when I called only once for the sale? Why were they not reinvested in the FF2050 in 3 business days (by December 12, 2008) as per Massachusetts law when the open orders were entered only on December 15, 2008 & were for total of $950.00 only?
The dividends & capital gains totaling more than $10,000 were not reinvested in both the Simple & Roth IRA since February 2009. Fidelity claims that the option to reinvest was changed under my log-in ID in February 2009 but they cannot tell me from which computer this change was made.
Thank you,
Radha
 

Neil Maley

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Advocate
Dec 27, 2014
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#2
I am not sure what we can figure for you here. Have you escalated this to the State Banking Department?


Have you contacted any Executives at Fidelity?
What was their excuse as to why they didn’t move all the funds on the day you told them to?
 
Likes: VoR61

jsn55

Verified Member
Dec 26, 2014
6,397
6,453
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San Francisco
#4
This is the letter I sent to Ms. Elizabeth Nsahlai (Assistant Attorney General) of the Attorney General’s office – Boston regarding my dispute with Fidelity. The AGO - Boston office has been working to mediate this issue with Fidelity for the last 7 months with no success. Fidelity denies any wrongdoing.

Dear Ms. Nsahlai:
I request you to ask Fidelity whether the following funds in both my Simple & Roth IRA were requested under my log-in.
FCNTX - Fidelity Contra fund
FLPSX – Fidelity low priced stock
FIDSX – Fidelity Select Financial Services.
I never called Fidelity to purchase these funds & I could not have logged in since I have no knowledge of these funds. I am absolutely positive that you will not find these funds under my log-in or from a call placed by me since I have no knowledge of these funds.
Simple IRA
May I request you to ask Fidelity to review the dates of the following:
I made only one call to sell the FF2025 & purchase the FF2050. Why were they sold on three different dates that were months apart? The entire FF2025 should have been sold on January 5, 2009 & the entire proceeds should have been reinvested in 3 or 5 business days (by January 10, 2009) in the FF2050. Instead they were sold months apart when the price had fallen & only partially reinvested months later on random dates into funds not asked for instead of the FF2050. The FF2025 sold on 4/17/2009 & 05/1/2009 for $2,520.00 & $2,060.15 at a total loss of $2,790.53 were never reinvested in any fund but remained in cash until now. The open orders which Fidelity claims they were confused about would not have existed if they had executed the orders in time since there would have been no cash available.
I am giving the details below:
On January 5, 2009, the FF2025 was sold for $3,500 for a loss of $1,581.05. This should have been reinvested in FF2050 in 3 business days (or at least by January 10, 2009). The open order is dated January 22, 2009 which is 17 days later than the sale date. If it had been reinvested as per Massachusetts business law in 3 business days, there would have been no cash available for the open order.
Again, on April 17, 2009, the FF2025 was sold for $2,520 for a loss of $1,209.48. This should have been sold in January 2009 instead of April 2009.This should have been reinvested in FF2050 in 3 business days (by January 10, 2009). The open order is dated April 29, 2009 which is 3 months later than the sale date. If it had been reinvested as per Massachusetts business law in 3 business days, there would have been no cash available for the open order.
On May 1, 2009, the FF2025 was sold for $2,060.15. This should have been sold in January 2009. This should have been reinvested in FF2050 in 3 business days (or by January 10, 2009). The open orders were entered on May 6 & May 7, 2009. . If it had been reinvested as per Massachusetts business law in 3 business days, there would have been no cash available for the open order.

Roth IRA
I request you to review the dates of the following:
In the Roth IRA, the FF2025 was sold for $5,752.90 for a loss of $2,286.60 on December 8, 2008, December 9, 2008, & December 17, 2008. Why were they sold on three different dates when I called only once for the sale? Why were they not reinvested in the FF2050 in 3 business days (by December 12, 2008) as per Massachusetts law when the open orders were entered only on December 15, 2008 & were for total of $950.00 only?
The dividends & capital gains totaling more than $10,000 were not reinvested in both the Simple & Roth IRA since February 2009. Fidelity claims that the option to reinvest was changed under my log-in ID in February 2009 but they cannot tell me from which computer this change was made.
Thank you,
Radha
It would be helpful if you gave us a summary of your issue so we understand what happened. I read through half this letter and have a vague idea but we need the simple facts.
 
Feb 21, 2018
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#5
You mention that you've been working this issue with Fidelity for seven months...does this mean you initiated this with them in July 2017? If so, that is some eight years after the fact. I'm curious why you would not have brought this to their attention back in 2009 when these transactions occurred.

I believe there is a statute of limitation on bringing this type of complaint with a brokerage or financial advisor.
 
Mar 5, 2018
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#7
You mention that you've been working this issue with Fidelity for seven months...does this mean you initiated this with them in July 2017? If so, that is some eight years after the fact. I'm curious why you would not have brought this to their attention back in 2009 when these transactions occurred.

I believe there is a statute of limitation on bringing this type of complaint with a brokerage or financial advisor.
I am not sure what we can figure for you here. Have you escalated this to the State Banking Department?


Have you contacted any Executives at Fidelity?
What was their excuse as to why they didn’t move all the funds on the day you told them to?
Yes! Several executives at Fidelity. They say I asked for it to be done that way but won't provide documentation. The Attorney General's office is no longer involved. They were only trying to mediate. I even contacted CEO Abigail Johnson by email.
 
Last edited:
Mar 5, 2018
11
0
1
60
#8
You mention that you've been working this issue with Fidelity for seven months...does this mean you initiated this with them in July 2017? If so, that is some eight years after the fact. I'm curious why you would not have brought this to their attention back in 2009 when these transactions occurred.

I believe there is a statute of limitation on bringing this type of complaint with a brokerage or financial advisor.
 
Mar 5, 2018
11
0
1
60
#9
I just turned sixty. You are eligible to withdraw money from your retirement accounts without penalty at age 60. I needed to withdraw money for a medical emergency. . I have no knowledge of mutual funds or the market. I asked an investment expert to review my account before withdrawing money & he discovered the errors.
 
Mar 5, 2018
11
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1
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#10
I just turned sixty. You are eligible to withdraw money from your retirement accounts without penalty at age 60. I needed to withdraw money for a medical emergency. . I have no knowledge of mutual funds or the market. I asked an investment expert to review my account before withdrawing money & he discovered the errors.
It would be helpful if you gave us a summary of your issue so we understand what happened. I read through half this letter and have a vague idea but we need the simple facts.
It would be helpful if you gave us a summary of your issue so we understand what happened. I read through half this letter and have a vague idea but we need the simple facts.
Funds were not reinvested promptly & in some cases not reinvested at all but left in cash until now. Also, funds were arbitrarily diverted to mutual funds not asked for by me.
 
Feb 21, 2018
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#11
When you say "yes" to my quote, I don't think I understood what you were saying yes too. Did you bring this complaint to the attention of Fidelity in 2009, or 2017? If you didn't first bring this to their attention until 2017 you may be outside the time period to prevail.

After you contacted Fidelity to make the changes you wanted back in 2009, did you notice in the following month on your statements that the instructions were not carried out? What did you do to remedy the situation back then?
 
Likes: VoR61
Mar 5, 2018
11
0
1
60
#12
When you say "yes" to my quote, I don't think I understood what you were saying yes too. Did you bring this complaint to the attention of Fidelity in 2009, or 2017? If you didn't first bring this to their attention until 2017 you may be outside the time period to prevail.

After you contacted Fidelity to make the changes you wanted back in 2009, did you notice in the following month on your statements that the instructions were not carried out? What did you do to remedy the situation back then?
 
Mar 5, 2018
11
0
1
60
#13
It may seem strange to investment savvy people like you that I did not notice this error until February 2017. I asked for all my money to be invested in the 2050 target fund since I have no knowledge of mutual funds & target funds I was told was the way to go for unsophisticated investors. Several severe family calamities happened around that time & continued for several years & I did not pay attention to the statements. Besides, I don’t know how to read mutual fund statements. I have become more knowledgeable only in the last year. I was under the impression that Fidelity is like a bank where errors hardly ever occur & the fund manager monitors the account.

You are right in saying that I may be outside the time period to prevail. Only a very sophisticated attorney can find loopholes as to when the statute of limitations starts ticking. I am trying to get this resolved by mediation. Fidelity is a reputed premier mutual fund company & I am hoping that they will offer some reasonable compensation decided by them. It will be a pittance for them. They did make serious mistakes even if I did not notice the errors immediately.
 
Feb 28, 2018
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#14
It may seem strange to investment savvy people like you that I did not notice this error until February 2017. I asked for all my money to be invested in the 2050 target fund since I have no knowledge of mutual funds & target funds I was told was the way to go for unsophisticated investors. Several severe family calamities happened around that time & continued for several years & I did not pay attention to the statements. Besides, I don’t know how to read mutual fund statements. I have become more knowledgeable only in the last year. I was under the impression that Fidelity is like a bank where errors hardly ever occur & the fund manager monitors the account.

You are right in saying that I may be outside the time period to prevail. Only a very sophisticated attorney can find loopholes as to when the statute of limitations starts ticking. I am trying to get this resolved by mediation. Fidelity is a reputed premier mutual fund company & I am hoping that they will offer some reasonable compensation decided by them. It will be a pittance for them. They did make serious mistakes even if I did not notice the errors immediately.

I had major problems when working with the brokerage division of Fidelity. Shortly after opening my account there i noted clerical problems in my statement that require a substantial amount of time to correct, as well as a visit to the local Fidelity office. I transferred everything to Charles Schwab and problems all disappeared. I invest in Fidelity funds via my Schwab account, which permits a perfect paper trail documentation of everything.
 
Mar 5, 2018
11
0
1
60
#15
I had major problems when working with the brokerage division of Fidelity. Shortly after opening my account there i noted clerical problems in my statement that require a substantial amount of time to correct, as well as a visit to the local Fidelity office. I transferred everything to Charles Schwab and problems all disappeared. I invest in Fidelity funds via my Schwab account, which permits a perfect paper trail documentation of everything.
 
Mar 5, 2018
11
0
1
60
#16
Thank you for sharing your experience. I wish I could communicate with clients who have had problems with Fidelity in the last six years & see if there is something we can do as a group. Do you know any forum where injured investors can be contacted directly to approach Fidelity as a group? I may be able to circumvent the statute of limitations?
Thanks,
Radha