PUBLIC.com questionable practices

Scam Broker Check 🛡️
1

In May of 25 I moved my ROTH to Public.com from Ally. I will paste the complaint I had to file with FINRA to get them to respond. Stay away from these two.

I am filing this complaint regarding a series of improper custodial actions and possible violations of securities regulations that occurred during and after the ACATS transfer of my Roth IRA from Ally Invest to Public.com (cleared by Apex Clearing Corporation) between May and July 2025.

On May 29, 2025, 1,530.42399 shares of AGNC Investment Corp (Ticker: AGNC) were successfully transferred from Ally Invest to Public.com. I subsequently executed a limit sell order of these AGNC shares on June 4, 2025, via Public.com.

However, on June 10, 2025, Public.com recorded two additional “EXTERNAL_SALE” transactions, for the identical number of AGNC shares (1,530), priced at $9.30 per share. These sales were unauthorized and not initiated by me. The proceeds were never credited to my account. The shares were no longer under Ally’s custody by that date, yet Ally’s internal records reflect a sale as well—raising concerns of phantom or duplicative liquidation and suggesting serious custodial miscoordination or potential internal fraud.

Further, beginning June 5, 2025, I received daily margin call alerts in a Roth IRA account, which is not legally permitted to hold margin or naked positions. These alerts persisted despite multiple support inquiries. No meaningful corrective action was taken until July 24, after the collateral in my account (over $15,300) was removed without consent. This caused two options positions—one in INTC 15AUG25 $23 Put (Ticker: INTC) and one in ULTY 15AUG25 $6 Put (Ticker: ULTY)—to become improperly classified as naked.

The wrongful reclassification and seizure of cash collateral occurred without explanation, impaired my ability to exit or manage trades, and directly exposed me to financial harm during the market drop on July 24, 2025. This not only created compliance violations (Roth IRAs cannot carry margin or uncovered options), but also raises questions of internal risk control and systemic misreporting.

I repeatedly contacted Public.com support (via chat, the only channel offered). Responses were vague and delayed. On July 24, I was finally escalated to a compliance officer. However, this escalation occurred only after substantial loss and prolonged exposure.

Since then, I have been put off by both Ally and Public, neither firm seems to be too motivated to correct this, each contact has been a promise of “we’re escalating” or we’re reviewing and will have an answer in 14 days or weeks or whatever.

These are toxic brokerages.

2

Hello, I’m Nuri AI, and I’m jumping in with a quick AI-generated response until BrokerChooser Staff members can join the discussion. I’m sorry to hear about the troubling experience you’ve had with Public.com and Ally. It sounds like a very frustrating situation. Here are a few points to consider:

  1. Unauthorized Transactions: The unauthorized sales and the lack of credited proceeds are serious issues. It’s crucial to keep all records of your communications and transactions as evidence.

  2. Margin Calls in a Roth IRA: Receiving margin call alerts in a Roth IRA is indeed concerning, as these accounts are not supposed to hold margin positions. This indicates a significant error in account management.

  3. Delayed Support and Escalation: The delayed responses and vague communication from customer support can be incredibly frustrating, especially when dealing with financial losses and compliance issues.

  4. Filing a Complaint: You’ve taken a good step by filing a complaint with FINRA. It’s important to follow up on this and provide them with all the necessary documentation to support your case.

  5. Consider Legal Advice: Given the complexity and severity of the issues, you might want to consider seeking legal advice to explore your options for recovering any losses and addressing the compliance violations.

  6. Stay Vigilant: Keep monitoring your accounts closely and document any further discrepancies or issues.

I hope this situation gets resolved in your favor soon. A human from BrokerChooser will review your topic shortly and join the conversation to provide further assistance.

3

Dear CubicWound7955

1. Keep all documentation
– Save all emails, chat transcripts, account statements, trade confirmations, and ACATS transfer documents. These are crucial if you pursue legal or regulatory action.

2. Continue your complaint with FINRA
– You’ve already taken the right step by filing with FINRA. If their response is too slow or insufficient, consider also filing a formal complaint with the SEC (U.S. Securities and Exchange Commission)—especially since there may be signs of internal fraud.

3. Contact Apex Clearing directly
– Since Apex is the clearing firm for Public.com, contact them separately to request a detailed account of the AGNC transactions. There might be discrepancies in their records that help identify where the problem originated.

4. Seek legal advice (preferably from a securities lawyer)
– Consult a U.S.-based lawyer experienced in securities law and IRA-specific regulations. A legal inquiry or letter from an attorney can often trigger faster and more serious responses from brokers.

5. Apply public pressure if needed
– If both brokers continue to delay, consider sharing your experience on platforms like Reddit (e.g., r/investing, r/personalfinance) or Twitter/X, backed by facts and documentation. Public exposure often accelerates resolution.

Regards,

Chris