If i gave someone money to invest but I had no contract can i get my money back?

Question

I gave a friend money to invest in stock. I didn't have a written contract nor did I have him sign anything. The stock plunged to nothing and I lost my money. He says there is nothing he can do about the market. He wasn't working for a investment company he was just a friend. I didn't even have him put the stock in my name. Is there anything I can do? I told him I would sue him for the money I gave him but I only have a copy of the check I wrote out to him personally. I was told that once I gave him the money and with no contract he could of done what he wanted with it and that he wouldn't be obligated to pay me back either way. Due to the fact it was a verbal agreement and I left it all in his hands.

Answer 1

He doesn't owe you anything. You trusted his stock judgement and it stunk. You are the only one responsible for the bad decision. Next time pick someone who has the experience and get everything in writing, but either way if it was in his name it was his money to lose not your's. Make it in your name next time.

Answer 2

You had an agreement, albeit an oral one. This sounds like sour grapes from someone who trusted some bad stock advice and now is trying to find a way out. Take this as a lesson as to why agreements of this type should be in writing. Memories get faulty and things can be misconstrued when you haven't taken the time to write it down. Will writing it down save all your problems, no, but it will cure some of them and give you firmer grounds in court if the other party fails to live up to his end of the bargain.

If you're due anything at all it is your part of the sale of the stocks if they have any value left. Your share of course would be equivalent to your percentage of the initial investment. For example, if you contributed half of the original investment, then half of the proceeds from the stock sale should be yours.

Answer 3

I bet if everything was in your name you'd grouse about losing it! Your like most people they want that dividend check but they never give a thought to what happens when it goes south! Remember the investments that offer the highest return possible have the most risk. And offer the same amount to me under the same conditions so you will make sure you learn your lesson this time!

Answer 4

You can try--but he can claim it was a 'gift'. Hope it wasn't too much, but even if it was in your name and the stock plunged--you'd be out the money anyway. Think of this as an expensive lesson and/or a payoff to get rid of a loser of a friend.

Answer 5

No, i dont think that there is anyway you can get your money back. One you had no written contract, therefore no paper trail. Also investing in the stock market is a risk. You took that risk and it turned out badly.

Answer 6

if you would have given that money to a broker and you lose your shirt with that broker your dead. you don't get anything back. why is it different with your friend ? your sure that the stock tanked ? if you are, you lost your money. the bottom line is that their is nothing legal that you can do to him you will be laugh out of court. take it as a learning experience. next time open an account on line with ameritrade and you Can make your own trades and loss your own money.

Answer 7

Your ex-friend is sort of right. He probably broke state and Federal law by handling investments without being registered but as you said you have no proof.

Answer 8

why do they call this Law and Ethics? Those are two terms that are mutually excusive. There is no such thing as an ethical lawyer. Why do you want to blame your stupidity on someone else? There, I think I have raved enough tonight.

Answer 9

It was an expensive lesson. I hope it was worth it and you learned from it.

Answer 10

Good greif.. what a crybaby... you made a bad choice, live with it.