Unauthorized Trading

Unauthorized trading is the purchase or sale of securities that a Financial Advisor or Stockbroker makes for a customer without the customer’s permission. The Financial Industry Regulatory Authority (FINRA) has a specific rule that prohibits any Financial Advisor or Stockbroker from making unauthorized securities trades without prior approval from the customer.

Although brokers make recommendations to their clients, the client must ultimately agree to those recommendations before a purchase or sale occurs. Unauthorized Trading is one of many ways a broker can harm his or her clients. Unauthorized Trading often results in greater commissions for the Stockbroker, which is self-serving and constitutes broker misconduct.

When an unauthorized purchase or sale has occurred, it is important to complain immediately. FINRA requires brokers to send their clients statements that document all transactions. These statements contain “confirmations,” documents reflecting purchases and sales. The best way, if not the only way, of knowing whether unauthorized trading is occurring, is to open one’s mail. Unfortunately, many investors do not open the envelopes or emails they receive from their brokers. Please open your mail and read all attachments to emails you receive from your broker/financial advisor!

If you or your client have been the victim of unauthorized trading, please call us at (800) 718-1422 for a complimentary consultation.

Typical Securities Claims

sub

Breach of Fiduciary Duty

Fiduciary Duty is a legal obligation of one party to act in the best financial interest of another – to place another’s interests first – to make the client’s interests paramount. Read More
sub

Unsuitability

FINRA's suitability rule states that firms and their associated persons “must have a reasonable basis to believe” that a transaction or investment strategy involving a recommended security is suitable for the customer. This reasonable belief must be based on Read More
sub

Failure to Diversify

Failure to diversify means that a Stockbroker or Financial Advisor fails to recommend an appropriate allocation of one’s assets into different investment asset classes. Read More
sub

Churning

Churning, in its most basic form, occurs when a stockbroker/financial advisor buys and sells securities for and account, without regard for the customer’s investment interests, for the purpose of generating commissions. Read More
sub

Unregistered Stockbrokers and Unregistered Sales Assistants

By law, stockbrokers and certain sales assistants must be registered with FINRA and with state regulators. If they fail to meet this requirement, an investor may have the right to cancel a purchase or sale. Read More
sub

Unregistered Securities

Before securities, such as stocks, bonds and notes can be offered for sale to the public, they first must be registered with the Securities and Exchange Commission and/or a state regulator. Read More
sub

Concentrated Positions

If you have a large percentage of your assets invested in a single stock or bond, a small number of stocks or bonds, or even a single sector of stocks or bonds , then you have a concentrated position. Concentrated positions expose the investor to significantly greater risk Read More
sub

Negligence

Negligence occurs when a financial advisor or stockbroker breaches a general duty of care resulting in damages.Just like the victim of an auto accident may be entitled to sue the driver who was at fault, the victim of a stockbroker’s negligence may also be entitled to seek relief. Read More
sub

Unauthorized Trading

Unauthorized trading is the purchase or sale of securities that a Financial Advisor or Stockbroker makes for a customer without the customer’s permission. The Financial Industry Regulatory Authority (FINRA) has a specific rule that prohibits any Financial Advisor or Stockbroker from making unauthorized securities trades Read More
sub

Breach of Contract

When an investor has an oral or written contract with a financial advisor or stockbroker, and that person breaches their contractual obligations, they may be financially responsible for the breach. Read More
sub

Breach of Third Party Contract

In certain situations, you may be a third-party beneficiary of a brokerage firm’s contract with a regulator, such as FINRA. Read More
sub

Failure to Follow Instructions

As a fundamental element of their relationship with the customer, Stockbrokers/Financial Advisors, as well as registered sales assistants, are required to follow the customer’s instructions. They may be liable if they fail to do so. Read More

ALL SECURITIES CLAIMS

Typical Securities Claims

Unauthorized Trading

sub

sub

Unauthorized Trading

Typical Securities Claims

sub

sub

sub

sub

sub

sub

sub

sub

sub

sub

sub

sub