Business · Markets · 2 hrs ago
Fraudsters reportedly placed a six-figure trade in a TD cash account
Fraudsters took over a TD investor’s account in February, according to retired teacher Ray Politeski of Lloydminster, Alberta.
They reportedly sold his investments and bought hundreds of thousands of dollars’ worth of a thinly traded Chinese stock.
The purchase was reportedly more than $100,000 above his available funds, despite the account being a cash account rather than a margin account.
Some brokerages allow cash-account customers to buy more than their available cash if they pay the full amount by the trade’s settlement date.
That flexibility can leave fraud victims with negative balances if criminals use it to make unauthorized purchases.
Canada’s investment regulator says dealers must ensure cash-account purchases are paid in full by settlement, while each dealer sets its own trade limits.
Fraudsters reportedly placed a stock purchase worth more than $100,000 above the funds in a TD Direct Investing customer’s cash account.
The account belonged to Ray Politeski, a retired teacher in Lloydminster, Alta.
Politeski said criminals took over his account in mid-February, sold his holdings and bought hundreds of thousands of dollars of a thinly traded Chinese stock.
The transaction pattern matched a form of fraud in which stolen funds are used to help push up a stock’s price, likely as part of a pump-and-dump scheme.
Some brokerages allow cash-account purchases exceeding available funds if the balance is paid by the settlement date.
- Who
- Fraudsters reportedly took over the TD Direct Investing account of customer Ray Politeski.
- What
- They liquidated his holdings and bought hundreds of thousands of dollars of a thinly traded Chinese stock, reportedly placing a trade more than $100,000 above the account’s funds.
- When
- Politeski said the account takeover happened in mid-February. The article was published on 2026-10-13.
- Where
- The account was with TD Direct Investing; Politeski is from Lloydminster, Alta.
- Why
- The trading pattern matched a scheme in which stolen funds are used to push up a stock’s price, likely as part of a pump-and-dump.
This story does not have two clearly opposing sides.
Politeski said criminals took over his account, sold his holdings and bought a thinly traded Chinese stock.
The Globe and Mail published its report on the risks of cash-account trading flexibility.
- Customer
- Ray Politeski, a retired teacher
- Brokerage
- TD Direct Investing
- Location
- Lloydminster, Alta.
- Reported trade size
- More than $100,000 above the value of funds in the cash account
- Stock
- Thinly traded Chinese stock
What people are saying
It’s largely about efficiency, because clients may want to purchase something and they’re moving money into the cash account, but it hasn’t hit the account yet
Within that requirement, dealers set their own limits on the size of trades they permit during this period as part of managing their credit risk
Sources
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