Unauthorized Trading

DID YOUR BROKER GET YOUR PERMISSION BEFORE INVESTING?

One of the most serious kinds of stockbroker misconduct is unauthorized trading. Stock brokers and other financial advisors have a duty to get your permission to buy or sell stock before they invest your money. They also have an obligation to follow your instructions regarding when and at what price they need to buy or sell stocks on your behalf.

Brokers often argue that their customer gave permission for the trading by not complaining after they received the statements that show the trades. We can often get around this argument by showing that you didn’t receive full statements, the statements were altered, or there is some reasonable explanation why you didn’t complain about the statements. This could be because you didn’t understand the statements, or because of some other reasonable reason such as other things going on in your life.

Brokers often rely on the guilt their customers feel for not reviewing the statements more closely. But that often doesn’t prevent us from helping investors get some or all of their money back.

Trading your money without your permission is a very serious violation of your trust. When brokers do this, they forget that it’s your money.

If you believe that you lost money because your broker invested your money without your permission or didn’t follow your instructions, we can help.