If you have a stock broker that you feel has made trades regarding your account without your permission, you may be a victim of unauthorized trading. If you have a non-discretionary account, your broker must contact you and receive your permission before any trades can be made. A knowledgeable and proven California securities fraud lawyer from our firm can assist you in protecting your investments from deceptive practices and in resolving your securities disputes.
How to Resolve Unauthorized Trading Cases
Typically, most agreements will include a clause that requires the investor to resolve disputes through arbitration. This method is quicker and costs less than arbitration litigation. Another option is by requesting a FINRA arbitration if you did not consent to arbitration in your agreement.
At The Law Offices of Jonathan W. Evans & Associates, we are backed by decades of experience in securities fraud law. We are prepared to help you resolve your unauthorized trading matter.
When Can I Recover Losses in Unauthorized Trading?
Not all unauthorized trading cases will result in a recovery of losses.
Below are situations in which losses may be recovered:
- There is evidence that the broker traded securities without your express approval.
- There were trades made that were outside the scope of the written authorization.
- Trades were made that did not fit your investment objectives or financial circumstances.
How Do Brokers Get Proper Authorization?
In many cases a customer's brokerage account will be a non-discretionary account. This means that in order for your broker to make any trades, they must have your prior consent. If your broker attempts to enter a trade for your account as an unsolicited trade than he is indicating that you requested that order. By contrast, solicited trade would be a trade that is recommended by your broker. If you have signed an agreement that your account will be a discretionary or managed account, than your broker may enter trades without your consent. However in a discretionary account there is a very high level of fiduciary duty that the broker must comply with to protect the client. If your account is a non-discretionary account and you have not given prior permission for trades that have been entered regarding your account, your broker may be guilty of misconduct or fraud.
Why Do Brokers Break the Rules?
Unfortunately, some brokers end up putting their own interests above that of their clients. Some try to increase their commissions or fees by trading on an account excessively, others try to cover their losses, or are simply trying to advance their own financial interests.
Unauthorized Trading Lawyer Serving California
Determining if your stock broker or investment advisor is involved in fraudulent activity with regard to your brokerage account can be difficult to do. With 35 years of experience representing clients in the field of securities fraud, the legal professionals at The Law Offices of Jonathan W. Evans & Associates can make a profound difference in the outcome of your unauthorized trading case. We are committed to taking the time to get to know you and every detail of your case in order to launch a thorough and successful strategy for resolving your securities challenge.
Contact a California unauthorized trading attorney from our firm today to learn more about how we can help you to resolve your securities dispute.
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