Customer Blows the Whistle on E*Trade

MINEOLA, N.Y. (CN) - A man claims in court that E*Trade Securities sold his 1,000 shares of Sirius Radio stock without his knowledge or consent to pay itself $85 in "inactivity fees," though E*Trade never told him he owed it any such fees, or that it could sell his stock to collect it.

Niles Welikson sued E*Trade Securities and E*Trade Financial, in Nassau County Supreme Court.

Welikson says he "had never received any notification as to fees being due and owing or that the stock would be required to be liquidated in order to pay for any such fees."

Welikson claims that in January 2006, "defendant E*Trade purchased, on plaintiff's behalf, 1,000 shares of Sirius Satellite Radio at the then existing share prices of $6.305 per share."

He says he paid E*Trade for the stock, plus its $9.99 commission.

He claims: "That on or about December 26, 2008 defendant E*Trade, without plaintiff's permission, consent or knowledge, sold the aforesaid shares at .1225 per share and thereby completely liquidated plaintiff's account with defendant E*Trade.

"That on or about January 23, 2012 plaintiff was advised of all the foregoing by defendant E*Trade and was further advised that the stock was liquidated to cover defendant E*Trade's 'inactivity' fees of $85.00.

"That plaintiff had never received any notification as to fees being due and owing or that the stock would be required to be liquidated in order to pay for any such fees."

To top it off, Welikson says, he has been unable to contact E*Trade since his account was liquidated.

He demands the value of the stock E*Trade liquidated, and $500,000 in punitive damages for breach of contract and fraud.

He is represented by Horing Welikson and Rosen, of Williston Park.

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