Chapman, Albin: OptionSellers Investors, Left With Massive Losses Betrayed By INTL FCStone

CLEVELAND, DETROIT, and TAMPA, Fla., Feb. 12, 2019 /PRNewswire/ -- Last November, hundreds of INTL FCStone (FCStone) customers lost every nickel in their accounts as a result of reckless trading in the commodities futures markets. Since then, the firm has been threatening to sue its customers for "margin" it says they owe, but flatly refuses to explain how it came up these amounts. Its customers believe FCStone is responsible for the horrific losses in their account and they want their "day in court." They won't get one: FCStone took away their right to go to court, but promised to "arbitrate" their claims. After hundreds of its customers filed claims in arbitration, FCStone refuses to arbitrate. 

On Monday February 11, 2019 a group of FCStone customers filed a petition which asks a federal court in Georgia to decide whether or not FCStone agreed to arbitrate disputes with its customers.  "We're unhappy that we have to ask a judge to decide an issue that is so self-evident," notes attorney John Chapman, a principal at ChapmanAlbin, an investor rights law firm, "but FCStone's bad faith refusal to arbitrate leaves us absolutely no choice."

"Customer agrees that, should a dispute arise regarding his account, it will be resolved by binding arbitration."  Language like this is a fixture in the contract's customers are asked to sign when they open their account with most any financial services firm.  Pre-dispute arbitration agreements take away investor's right to go to court and to have their case decided by a jury. In exchange, investors are promised that in arbitration, their dispute will resolve quickly, efficiently, and inexpensively. But this week, after locking the courthouse door for hundreds of its customers, FCStone has slammed the door to arbitration in their faces as well and threatens to instead wage a war of attrition against them.

A retiree whose retirement savings were destroyed in the FCStone debacle in mid-November, 2018 commented Tuesday that he's giving up all his volunteer work and looking for a job to hopes of staving off bankruptcy.  He added, "I was hoping things would move along in arbitration, but FCStone just keeps changing the rules on us. Somedays I just choke on the unfairness of what FCStone is doing."

"FCStone knows that many of its OptionSellers accountholders, especially retirees, were badly hurt last November. It knows some are barely hanging on financially," commented Chapman. ChapmanAlbin represents about 135 FCStone customers who suffered huge losses because, they claim, INTL FCStone turned a blind-eye to reckless naked option trading in natural gas and crude oil futures. "INTL FCStone knows many middle-class folks were badly hurt because it failed to do its job, and it is determined to deny them a reasonable forum for their grievances, to play games with them and just starve them out," Chapman asserted.

ChapmanAlbin filed claims against INTL FCStone with the American Arbitration Association on behalf of almost all of the OptionSellers accountholders it represents. "We went to AAA only because INTL FCStone promised us, in writing, on December 13, it would arbitrate with us. So that's where we went, hoping for a smooth, efficient, quick process so we could begin to get some of these folks back on their feet." So far, the process has been anything but smooth, according to Chapman.

After ChapmanAlbin clients filed their arbitration claims, AAA officials asked FCStone to sign papers to start the arbitration process. Instead of complying with this request, the firm's lawyer, Angela Angelakos responded in a letter dated February 4, 2019: "Under no circumstances will INTL agree to AAA administration of any disputes whatsoever", and adding,  "INTL objects to any effort by the AAA to decide whether the parties have formed a valid and binding agreement to arbitrate at AAA."

FCStone clients lost their entire investments, and subjected to margin calls, when OptionSellers poured customers assets into huge naked option positions in natural gas and crude oil. These bets proved catastrophic when all OptionSellers clients were wiped out in one day of trading on November 14, 2018.

Website: www.johnschapman.com

SOURCE Chapman, Albin