(UPDATED December, 2011) Finally, a little of TD Ameritrade’s money is going to a few of the class members it ripped off. It’s taken 6 years to get here! Though TD Ameritrade refuses to pass a security audit and covered up the breach, the government (in the form of the SEC and the federal judiciary), and the Financial Industry’s self-Regulatory-organization Authority (FINRA, nee NASD) have let it off with a ‘slap on the wrist’ that will have no material impact on the company. I guesstimate the ‘slap on the wrist’ was over $40 million:$6.5 million for the settlement, plus the cost of my attorneys, their attorneys, printing, stuffing and mailing over 12 million letters, litigation costs (flying dozens of attorneys to San Francisco), increased insurance costs, loss of business, etc. Criminals had gained ongoing access to TD Ameritrade’s customer database back in October, 2005. This database contains 6.3 million+ customers’ names, addresses, mailing addresses, email addresses, trading histories, account numbers, account balances, dates of birth – oh, and social security numbers too. AMTD knew of, covered up, and failed to fix the problem for TWO YEARS. How do I know this?
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