Unauthorized Trading

When a professional relationship with a stock broker is established, the client may give the stock broker written permission to use discretion when trading. However, if the client does not wish to do this, the stockbroker must get permission from their client before making a trade. Doing so behind their client's back is known as unauthorized trading. An attorney can help to determine whether or not your situation may be grounds for a lawsuit.

Have you or someone you know become a victim of insider trading due to a negligent stock broker? If so, contact one of our securities fraud lawyers in your area today!

Unauthorized trading can result in:

• Claims For Rescission
• Breach of Contract
• Loss of Money
• Fraud

Often, a stock broker may place a transaction into a client's account without permission. When the client notices and complains about it, they might be convinced to let the transaction remain untouched because it will end up being profitable. This is a clear sign that the stock broker is dishonest and may have done other things behind the client's back. If you feel your stock broker has been dishonest, contact an attorney today.

In securities arbitrations, unauthorized trading allegations are common. If a client chooses not to give written permission to their stockbroker to buy and sell securities to their discretion, they must get oral permission from their client for each separate transaction. Unfortunately, many stockbrokers get tempted to just do what they wish without consulting their client because they are certain it will be profitable. However, there is never a guarantee that all trades a stockbroker makes will be profitable, and if money loss occurs, he or she is liable.

Have you or someone you know become a victim of insider trading due to a negligent stock broker? If so, contact one of our securities fraud lawyers in your area today!

Updated: LW

Content Related to Topic

• Mercury Agrees To Pay $28 Million Civil Penalty
  The SEC alleges that the former senior officers perpetrated a fraudulent and deceptive scheme from 1997 to 2005
  
  
• Stockbroker Pleads Guilty to Stock Fraud Conspiracy
  A stockbroker pleaded guilty today to his role in a scheme to manipulate the stock market and defraud investors
  
  
• SEC Files Action To Stop Ongoing Microcap Stock Fraud
  To deceive investors into buying these stocks, the defendants have preyed on public fears about terrorism and international health epidemics
  
  
• Former Executives Of Comverse Charged With Creating A Secret Stock Options Slush Fund
  the defendants reaped millions of dollars in profits as a result of their scheme and issued false and misleading financial statements to the company's shareholders and th
  
  
• US Securities Bureau Concern For Lagging Stocks
  The Enforcement Unit has received many calls concerning Wedgewood Acquisitions, allegedly based in Austria and the US Registration Bureau a fictitious government agency
  
  
• Settlements From Allegations Recommended Stocks Due To Influence From Their Investment Banking
  The settlements result from allegations of conflicts of interest at brokerage firms where analysts recommended stocks due to influence from their investment banking colle
  
  
• Znetix Stock Fraud, The Largest Stock Fraud Ever
  The indictment stems from the multi-state investigation of financial transactions related to the Znetix stock fraud, the largest stock fraud ever in the State of Washingt
  
  
• Southwest Securities to Pay $10 Million to Settle SEC and NYSE Supervision Charges, Relating to Stock Fraud and Late Trading by Southwest Registered Representatives
  The Securities and Exchange Commission and the New York Stock Exchange today announced the institution and settlement of enforcement proceedings against Southwest Securit
  
  
• Naples, Florida Man Sentenced In Znetix Stock Fraud Scam
  Description Of a Florida Man Cought For Online Stock Fraud Scam
  
  

Have you or someone you know become a victim of insider trading due to a negligent stock broker? If so, contact one of our securities fraud lawyers in your area today!