Intermediary Defalcations...

There have been three situations that have come to light this year involving intermediaries that have taken, or dipped into, the exchange funds they were entrusted to protect for their clients. Each of these defalcations came about because the intermediary held the exchange funds in a "commingled" account where all of the exchange funds were combined.

The Experts have already written several articles for various journals around the country about this problem -- clearly the bottom line is that you want to make sure your exchange funds are held by your intermediary in a separate account with your name on it.

--The Experts