Client trading loss

[David]

Client gave a day trader $7K to invest in TUI trading and lost all of his money. He has tried contacting the company and has not received any response. He understands the company is having legal issues.

Has anyone had a client who lost money with TUI?

Is this loss reported as a capital gain loss on Sch D or as a loss on Sch A subject to the 2% thresh hold?

Thanks.

[Lee B]

Or perhaps it's theft loss.

[David]

Is this a Sch D loss or Sch A subject to the 2% threshhold?