Four of my grandchildren were sold a zero coupon TIGR bond from Merrill Lynch at their births. These bonds do not receive any interest and are "book entry only" maturing in approximately 17 years.
The first bond to mature in May of this year and when neither my grandson nor the custodian, my daughter, received the $10,000, I called Merrill Lynch. I have not had an account with Merrill Lynce since 2003 and my representative is no longer with Merrill Lynch. I was told Merrill Lynch does not keep records longer than nine years, and they have no record except for the confirmation statement I sent to them.
I learned of this ripoff the hard way.
1. When ML subscribes for these California bonds maturing in 17 years, they send you a separate statement for the bond, never including the bond in your account statement.
2. Deutsche Bank, the transfer agent, sends ML the money they subscribed for, not keeping any individual records. ML pockets the money and returns some of it to the customers maintaining their account for 17 years.
3.in the event you no longer maintain an account with ML or change your address you lose your money unless another brokerage house can prove ownership of the bond..
4.in my case, the bonds were transferred to my daughter as custodian, and she received only one statement from ML.
5. My daughter does not have an account with ML and ML does not keep any records; although, they sell a "book entry only" bond. No statements were sent.
6. ML pockets all the money they receive from the transfer agent that is not claimed. The purchasers who never sold their bond or do not keep an account with ML, lose their money.
7. Next year, the second bond is due and I fully expect the same answer from them, and the ripoff of an additional $10,000.
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