Legal Question in Securities Law in California

College Fund Investing

My husband and I opened College

Funds for our children when they

were two yrs. old.

Our son is now seventeen. We

discovered his fund is down 40%.

Our Boker says he doesn't know

what happened.

The most this fund has been

was $59,000 the first quarter 2000.

By first quarter 2002, this fund was

down to $32.00

This fund is now around $45,000.

We have also contributed more cash

to this fund since the drop.

At the time of this drop in value, this

Broker was with SUTRO $ ASSO.,

and had just purchased a fund called

Goldman Sachs Internet Tollkeeper,

Class B.

My husband and I have pulled all

documents so we could see what

happened.

In 2002, SUTRO & ASSO. merged

with RBC DAIN RAUSCHER. We see

our children were charged a 'transfer

fee'! This is absurd.

We can understand if we lost value

in our own stocks/IRA's. We

understood College Funds had some

sort of protection.

We haven't spoken to anyone else

who has experienced this amount of

loss with a College Fund Invetment.

These are 'Custodial' accounts. My

husband and I feel very guilty for

allowing this to occur. Our

seventeen year old son could use

this money for College.


Asked on 2/04/08, 3:54 pm

1 Answer from Attorneys
Mark Tepper Mark A. Tepper P.A.

Re: College Fund Investing

The broker's claim that he does not "understand what happened in your account" is a suspicious circumstance. Contact us to discuss and we will try to help you. There will be no charge for your telephone consultation.

Read more
Answered on 2/06/08, 9:58 am


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