Just how cool is this?

[redduck]

Scottrade, for some reason, simply added 5932.443 shares of DODFX to my account. (That's Dodge & Cox International Fund). Price is about $47.80 a share. The questions are, do I have to pay some sort of gift tax on it? If I sell all the shares, is there a huge capital gains tax I'm looking at? Should I just give it back to Scottrade because it throws my allocation strategy way off? Or, should I be flexible regarding my allocation plans, keep the shares, and maybe stop working full time?

 

[Culture]

This sounds like a new asset class: Negative Term Bonds, as in, once they notice will appear as if it never appeared!

 

[bssc]

You should have a poll to see how long it takes them to catch up with you. I once had a mutual fund credit me twice. However, since this was back in the days of paper statements, I didn't notice until tax time. And their policy was that if you didn't report in 90 days, you had to live with it.

 

[clifp]

My first mortgage the bank took a couple of month to send me a bill. I didn't understand that I had paid a month in advance, but even so they were a almost a month late, because the loan was sold.

I was estatic for a couple of weeks, but as my roomate reminded me banks were not in the business of forgeting $140,000, and sure enough they did catch there mistake. I give it them 3 business day a month best guess.

I do like selling it because it screws up your allocation strategy.

 

[Nords]

Scottrade, for some reason, simply added 5932.443 shares of DODFX to my account. (That's Dodge & Cox International Fund). Price is about $47.80 a share. The questions are, do I have to pay some sort of gift tax on it? If I sell all the shares, is there a huge capital gains tax I'm looking at? Should I just give it back to Scottrade because it throws my allocation strategy way off? Or, should I be flexible regarding my allocation plans, keep the shares, and maybe stop working full time?

We'll see how funny this is next January when they start passing out their 1099s!

I bet it'll be even more fun if they did that to your IRA...

 

[poboy]

OK, here is the deal. The brother in law of the son of the director of finance in Nigeria told me I was named beneficiary of a long lost fortune. Since I have no need for money I suggested the funds be given to the poster known as redduck. Obviously this is the result.

 

[donheff]

OK, here is the deal. The brother in law of the son of the director of finance in Nigeria told me I was named beneficiary of a long lost fortune. Since I have no need for money I suggested the funds be given to the poster known as redduck. Obviously this is the result.

Sounds like fraud. The real Finance Minister is seeking help getting funds out of Nigeria. You sound like a dumb white guy -- what are the odds that you inherited from a Nigerian royal fortune? If you would like to join us in helping the real guy transfer funds PM me and I will explain how you can get in.

 

[redduck]

Let's see, I've talked to a couple of people at Scottrade. They seem to be in no hurry to get the funds out of my account. One guy said that I transferred the funds from Dodge and Cox itself to a brokerage that I never heard of and then to my Scottrade account. If I did this, I guess I've figured out how to do well in the stock market. It's not buy and hold; buy low, sell, high; or asset allocation. The secret is: just have the mutual fund companies put their shares in your account--and the best part is, you don't even have to ask them--or even know how this is done. I wish I knew about this 20 years ago. Or, even last year. If you don't hear from me again, something went really, really wrong.

 

[joesxm3]

maybe someone is parking shares in your account. when they pick them up they probably will add the rest to the pile.

 

[redduck]

Well, I still have the mutual fund in my account (it was added to my account on 4/19/07). And, Nords, thanks for your reply alerting me about the 1009s. I don't think I would have thought to check that out--although perhaps a number, a huge number that I'm not really familar with on my 1099s, would have shown up, and maybe that would have gotten my attention. Luckily, this is not an IRA account.

 

[Gumby]

Something similar once happened to me - an IRA transfer got double counted by the new trustee. I called them right away, but nothing happened for about three months. Then they sent me a very apologetic letter and reset my account to reflect the proper amount (with appropriate adjustment of subsequent gains or losses).

 

[Texas Proud]

Yes... you can do anything you want with it...

BUT, the real owner will eventually miss it and report it... you have no defense if you do something with the money.... this has been taken to court a few times when a bank has deposited money in the wrong account and the holder takes the money out and spends it... just sit tight and wait for them to come..

 

[redduck]

Yes... you can do anything you want with it...

BUT, the real owner will eventually miss it and report it... you have no defense if you do something with the money.... this has been taken to court a few times when a bank has deposited money in the wrong account and the holder takes the money out and spends it... just sit tight and wait for them to come..

Texas Proud, I was willing to give you the name of my very honest car mechanic, but after this kind of negative thinking...well, I'm not so sure now. (Actually, sometimes the correct advice really sucks). But, you are definitely correct and I will just sit tight. But, the weird thing is, it seems that I have complete access to the funds---even after notifying my brokerage.

 

[Texas Proud]

Texas Proud, I was willing to give you the name of my very honest car mechanic, but after this kind of negative thinking...well, I'm not so sure now. (Actually, sometimes the correct advice really sucks). But, you are definitely correct and I will just sit tight. But, the weird thing is, it seems that I have complete access to the funds---even after notifying my brokerage.

Sorry for the negative thinking...

Yes, you have full access because they THINK it is your money. Until they can verify that it is not yours, they will not do anything with the funds...

It still does not mean that if you do something that you will not have to give the money back.. as I said, I have read about cases where someone said the same thing... they put the money in my account so it MUST be mine... they lost...

 

[Trek]

So that's roughly $283,549 of free money on top of whatever other money you have. Sounds simple to me. Just withdraw the free money along with all your other money, then move to an affordable country with no extradition treaty with the U.S. An early FIRE just fell in your lap!

(just joking of course)

 

[redduck]

Well, perhaps I could cash in the mutual fund and summer in Nigeria and winter in Estonia. (I don't imagine either of these places have extradition laws). Maybe Texas...Texas probably doesn't have extradition laws.

 

[Trek]

Well, perhaps I could cash in the mutual fund and summer in Nigeria and winter in Estonia. (I don't imagine either of these places have extradition laws). Maybe Texas...Texas probably doesn't have extradition laws.

Actually, Estonia does have an extradition treaty with the US, so don't come here.

http://en.wikipedia.org/wiki/Image:United_States_extradition_treaties_countries.PNG

 

[redduck]

Actually, Estonia does have an extradition treaty with the US, so don't come here.

http://en.wikipedia.org/wiki/Image:United_States_extradition_treaties_countries.PNG

Now, that's really cold. But thanks for the heads-up. Wow, come into some quick, easy money and all of a sudden I'm a pariah (hope I spelled and am using that word correctly). Sort of set my heart on Estonia.

 

[Trek]

Now, that's really cold. But thanks for the heads-up. Wow, come into some quick, easy money and all of a sudden I'm a pariah (hope I spelled and am using that word correctly). Sort of set my heart on Estonia.

Well, you can come here, just lay low. Buy a house near the Russian border and tunnel underneath for a quick escape if need be.

 

[Nords]

Wow, come into some quick, easy money and all of a sudden I'm a pariah (hope I spelled and am using that word correctly).

Sorry, Duck, looks like you'll need to seek professional help...

 

[Martha]

Sorry, Duck, looks like you'll need to seek professional help...

One of my more fun jobs as a lawyer was contracting with SEC to track down and sell assets of a guy that was in jail for securities fraud. When I went to his home his bookshelf had all sorts of interesting books about how to move to countries without extradition treaties, how to form offshore trusts, the Off-Shore Bank Book, FODOR's guide to the Cayman Islands, etc.

He is out of jail now and I see him on the street on occassion. He always says hi.

 

[redduck]

"Sorry, Duck, looks like you'll need to seek professional help..."

Thanks Nords for the link (when I first read your post here, I thought you were talking of psychiatric help (it's ok, I didn't take it personally). But, after finally realizing that the "professional help" was actually a link, it brightened my day (that is, until I read what Martha wrote). Martha's post de-brightened my day. That Martha sure can be a downer at times. Just ask the guy she put in jail.

 

[DRiP Guy]

Wow, everyone seems to be taking this pretty much in stride... it would positively freak me out, because what gets in without my authorization could easily...

I seem to recall a scam where they would get access to an account, then use it to transfer funds into, basically amalgamating a bunch of ill-gotten gains into a legit (but hacked) account, and then final step -- clean it out -- which could include ALL proceeds, including whatever was in there originally.

While this is probably just a routine fat-finger by some data entry clerk, and not a heist in progress, I would personally take a VERY proactive stance to get it cleared up, and also change all my security settings (maybe even ask for new account numbers) once something like this has occurred.

So am I being overly paranoid?

 

[spideyrdpd]

Maybe you can arbitrage the money . Park it in a high yield account for awhile. The most they can do is ask for the money back right ?

 

[redduck]

Maybe you can arbitrage the money . Park it in a high yield account for awhile. The most they can do is ask for the money back right ?

Well, not exactly. They could DEMAND the the mutual fund shares be returned, plus whatever gains they would have made on the shares. Plus, whomever really owns these shares, well, I wouldn't want to mess with them--somehow, I just figure they are a bit more sophisticated (and powerful) than I am in the legal and finanical world. Besides, it's still their property. Perhaps my best argument for moving the shares would be that it was confusing to me (I kept having the very strong urge to rebalance, your Honor).

My second best argument might be that the shares were on my property. Kind of like a Rolls Royce on my front lawn. It didn't fit in well, looked out of place and upset the aesthetics. So, I moved the shares to a place less conspicous (yes, like turned it into cash and deposited the cash into an offshore account), your Honor.