Consumer complaint received 2024-12-14 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: ROBINHOOD MARKETS INC.
State: CA

Complaint narrative:
Comprehensive Complaint Document Subject : Fraudulent Transactions, Collusion, and Unlawful Conduct by Robinhood Markets , Inc. and XXXX Summary of Allegations This complaint details incidents of fraud, collusion, and obstruction by Robinhood Markets , Inc. ( Robinhood ) and XXXX. Their unlawful conduct has violated both federal and California state laws, causing significant financial and emotional harm. 

Detailed Allegations XXXX. Widespread Fraud Confirmed by Other Institutions Initial Incident : The complainants phone and wallet were stolen, resulting in unauthorized access to multiple accounts, including XXXX, XXXX, and other services. These incidents were reported to the police and the FTC. 
Financial institutions, including XXXX  XXXX XXXX ( XXXX ) and XXXX, investigated these fraudulent transactions, ruled in favor of the complainant, and refunded the stolen funds. 
XXXX. PayPals Role in Collusion and Admission of Fraud Collusion and Forged Evidence : XXXX initially colluded with Robinhood and XXXX, submitting fraudulent and forged evidence designed to make it appear as though the complainant authorized the transactions. 
The evidence provided contained glaring inconsistencies that were impossible to reconcile with reality, including fabricated transaction details and altered account records. 
These red flags were promptly recognized by XXXX  XXXX XXXX and credit card companies, who flagged the documentation as fraudulent. 
Attempt to Block Access to Evidence : When the complainant pressed XXXX for documentation of the disputed transactions, XXXX attempted to withhold access. 
XXXX falsely asserted that the complainant was not entitled to the documents unless a formal written request had been made. 
The complainant reminded XXXX that such a request had already been submitted. 
Admission of Fraud : XXXX ultimately admitted its role in facilitating fraudulent transactions. During a call, which the complainant conducted through their bank to ensure transparency, XXXX apologized and returned the stolen funds. 
XXXX openly acknowledged that the complainants access to BofA documentation exposed XXXX wrongdoing, with XXXX representatives stating that the complainant wasnt supposed to get these documents. 
XXXX. Robinhood and XXXX Obstruction and Blame-Shifting Failure to Investigate : Despite XXXX admitting to its role in facilitating fraudulent transactions, Robinhood and XXXX refused to resolve the disputed transactions. 
Both companies repeatedly shifted blame onto the complainant, violating Regulation E ( Electronic Fund Transfer Act ), which prohibits transferring liability for unauthorized transactions to consumers. 
Harassment During Investigation : Robinhood representatives called the complainant several times with hostile, unprofessional questioning regarding device access and locations. 
On XXXX date, they claimed fraudulent access had occurred from an XXXX, which the complainant does not own. 
On another date, they referenced a XXXX XXXX XXXX, which the complainant also does not own. 
When Robinhood mentioned a date matching the complainants actual device, the complainant offered to verify their XXXX location history to provide accurate information. Instead of accepting this effort, Robinhood representatives became agitated, demanded the complainant just guess their location, and accused them of being difficult. 
XXXX Threats and Intimidation : XXXX customer support threatened to block the complainant from further assistance, accusing them of monopolizing support resources. 
XXXX repeatedly claimed to have refunded stolen funds but directed those refunds to inaccessible accounts, despite knowing the original accounts were closed. 
XXXX actions directly violate laws requiring refunds to be issued to accounts accessible to the consumer. 
XXXX. Unauthorized Liquidation of Assets by Robinhood Unauthorized Actions : Robinhood liquidated the complainants stocks and cryptocurrency holdings without consent. 
The timing of these sales appeared intentional, as assets were sold at depressed values, maximizing financial harm. 
Avoidance of Accountability : I have provided XXXX the details where to send my money, but they claim they are trying to complay but can only send to the XXXX account. They take days and weeks to responds stating they are waiting on thier " partner '' to inform them what to do. AKA robinhood. This shows clear and convincing evidence of collusion. A felony crime under CA and FED laws. 
Instead of transferring proceeds to an accessible account, Robinhood withheld the funds and created unnecessary delays, compounding financial harm. 
XXXX. Unlawful Contractual Terms Robinhoods user agreement imposes additional liability on consumers, beyond what is permitted under Regulation E.

The company unlawfully required the complainant to meet arbitrary conditions before reimbursing stolen funds. These practices violate federal consumer protections. 
XXXX. Intentional Obstruction and Emotional Distress Robinhood and XXXX refusal to provide timely investigations, necessary documentation, or refunds caused : Prolonged financial instability. 
Significant emotional distress. 
Both companies demonstrated willful intent to avoid accountability and harm the complainant. 
Supporting Evidence Rulings by Other Financial Institutions : XXXX  XXXX XXXX, XXXX, and XXXX  all ruled in the complainants favor, confirmed the fraud, and refunded the stolen funds. 
Obstruction by Robinhood and XXXX : Robinhood blocked XXXX refunds and misrepresented facts, falsely citing account closures to delay resolution. 
Both companies manipulated transaction records and provided misleading information to regulators. 
Violations of Regulation E : Both Robinhood and XXXX blatantly ignored consumer protections afforded under federal law. 
Legal Violations Federal Violations Electronic Fund Transfer Act ( EFTA ) : Prohibits transferring liability for unauthorized transactions to consumers. 
XXXX XXXX ( 18 U.S.C. 1343 ) : Fraudulent schemes involving electronic communications. 
Racketeer Influenced and Corrupt Organizations Act ( RICO ) ( 18 U.S.C. 1962 ) : Demonstrated pattern of fraudulent and obstructive behavior. 
California State Violations California Civil Code 3336 : Recovery of damages for wrongful conversion of property.

Unfair Competition Law ( UCL ) : Prohibits deceptive, fraudulent, and unfair business practices.

Consumer Legal Remedies Act ( CLRA ) : Protects against unlawful and deceptive practices in consumer transactions.

Requested Remedies Full Restitution : Immediate reimbursement of all unauthorized transactions and asset liquidations.

Financial Compensation : Compensation for financial losses and emotional distress caused by Robinhood and XXXX unlawful actions. 
Refund Handling Compliance : Require XXXX to process refunds to accessible accounts, as mandated by law. 
Revised Contractual Terms : Termination of unlawful terms in Robinhoods user agreement that shift liability to consumers. 
Transparency in Investigations : Require Robinhood to provide all documentation, evidence, and findings related to the fraudulent transactions. 
Resolution Deadline Robinhood and XXXX must : THE SEC has told them to resolve the claim and inform them of the resolution ; but they both still play games. They have held my my funds froze my accounts. They owe me {$280000.00} for actual damages, punitive and pain and suffering plus interest this has gone on for months now and they refuse to cooperate even with intervention. they laugh at me and mock me. They think this is all so funny. I got an annoynmous call from an ex employee who claimed they do this on purpose to pay for the fines they were issued by the government and they pick on people who they think will go away. I have gotten calls from numbers in washington DC claiming to be XXXX telling me to download and app to my phone so they can protect me but it is clearly a fake name and they have forigen accents. I think it is a trick to try to say it is my fault I fell for scams. They broke every rule in thier investigation and it is totally unfair. 


Conclusion This complaint seeks immediate resolution, restitution, and accountability for the unlawful actions of Robinhood and XXXX. These companies repeated violations of consumer protections warrant comprehensive remedies and further investigation by regulators.

Company response to consumer: Closed with explanation