Patricia Blidner sent a message to Abigail Johnson President and Chief Executive Officer of Fidelity Investments and Chairman of Fidelity Worldwide Investment email address that said:
Ms Johnson
I have been a Fidelity customer for many years and now I believe I cannot trust Fidelity with my accounts. I will try to make this as concise as possible. My husband died in October 2013 and I met with my Fidelity advisor who insisted that my joint brokerage account had to be closed and a new one opened in my name only. All securities were transferred to this new account and all of my husbands IRA into my IRA account. With these procedures I lost all ability to see the history of our brokerage account and his IRA securities. My tax statements incorrectly indicated all sales in my Brokerage account as short term gains which of course they were not as inherited funds to a spouse are long term. I have continued to get K1s from the MLPs in my husbands name and every year and I have called Fidelity to correct this situation. For 2016 as per Federal Law, Fidelity filed a 990T for my IRA. It took Fidelity 10 months to file which resulted in significant late financial penalties for me. I sold 10 MLPs in my IRA in February 2016 because I thought that this would require that these securities would finally be transferred correctly to include the stepped up basis and nullification of depreciation recapture to which I am entitled. I was also aware there would be tax consequences to these sales but I had no idea that Fidelity would take the position that a 990T could be filed with securities incorrectly titled and transferred. However, that is exactly what happened. Additionally I thought there was a mathematical error but after meeting with my advisor, Brennan Decima at the Sarasota, FL branch who contacted Gregory Harding in the Personal Investing Operations Department, I realized that the person filing this return simply failed deduct the negative UBIT on the 990T for my UBIT losses. Not only that but he showed only this year and last years UBIT. I have all my K1s going back to 2010. At this point Fidelity has not performed their custodial fiduciary responsibility to ensure assets are titled correctly and maintaining correct records and balances. The money to pay these taxes I do not owe was taken from my IRA account on 10/10/17. I have had several phone conversations with Mr. Harding and at first he told me that I needed to go to tax support.com to get the K1s corrected. I took the position that since Fidelity filed this incorrect return on my behalf and was the custodian of the account, I believe it is Fidelitys duty to fix. When I asked who in Fidelity had the authority to do something about this, I was told the Tax Department but they would not take my calls. When I asked about customer service I was told nobody. Mr. Harding finally agreed to get the corrected K1s. So far he has sent me 1 K1 but it is the same incorrect one I had already received with no stepped up basis but it is finally in my name. Additionally, I have requested that Fidelity request my penalties for late filing be returned due to the fact that many securities needed to be retitled. At this point he has refused to do this. I understand that this may seem like a small issue to you but your customers expect that you can title and transfer securities properly and maintain accurate records.. I sincerely hope that you will help me resolve this situation to our mutual satisfaction. If you require any additional information, please contact me.
Patricia Blidner
