Fred Kagmar has a great life. He's got a couple of businesses, a smart and loving wife, and four great kids. He's sufficiently rich that he doesn't even have to work any longer. Awesome.
He enjoys playing the stock market, and is a big believer in Apple. So he's got $2.4 million in Apple stock, and he plays around with the stuff on Ameritrade.
Then, in 2012, he's convinced that Apple is going to go even higher. He puts another $8 million into the Ameritrade account, and off he goes. By the end of February 2012, the account value is up to $13 million. Not chump change at all! Then comes August 2012. He's on fire! The account's now worth over $16.3 million. And that's after he takes out another $3 million. He's doing all this without his wife's knowledge -- she only knows about the $2.5 million -- but he's doing awesome.
Of course, this is a Court of Appeal opinion. If that was the end of the story, there'd be no lawsuit, right?
You know the next chapter.
He tanks. Tanks. By the time he stops trading in the account, the $16.3 million is down to . . . $409,000.
Wow.
During this entire time, by the way, he's in marriage counseling with his wife. So things are pretty much not going well on any front.
They eventually divorce.
And now he has to reimburse the community for a ton of the money he lost in the account.
Things can change so much. Even in a tiny little bit of time.
