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Unauthorized Trading

Watch Out for Unauthorized Trading in Your Account

Unauthorized trading occurs when your broker buys or sells a security in your account without your prior approval. Unless you have previously agreed that your broker has discretion to manage your account without seeking prior approval for each transaction, your broker must follow rules designed to assure that you, in fact, approved each transaction on the day the transaction occurs. If not, the transaction may be unauthorized, or it may be considered to be a failure to complete required discretionary authority.

Discretionary Trades in a Customers’ Non-Discretionary Accounts is Prohibited

Industry Rules explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading violates just and equitable principles of trade and constitutes violations of Rule 10b and 10b-5 due to its fraudulent nature. There are certain exceptions however. For instance, if a customer has a margin account and the value of the account falls below the brokerage firm’s or regulator’s requirements, the broker may be able to sell the customer’s securities without consulting the customer beforehand.

To help us evaluate your chances for a successful recovery for “Unauthorized Trading” we offer a free and confidential claim evaluation.

Client Reviews
Howard Rosenfield is truly a life saver. After months of working with my financial advisor, I found out he was making risky investments without my knowledge. When I discovered how much money I lost, I thought there was nothing I could do. Howard explained all the difficult terms and what exactly my financial advisor did wrong. If it wasn't for Howard, I would never have recovered my losses and would be under extreme financial distress to this day. J.
Howard’s experience and advice throughout this ordeal was invaluable and reassuring. The law in general is complicated, difficult to understand and very personal. Financial misappropriation is even more personal but Howard’s years of experience and calm demeanor helped keep me calm, focused and moving forward. For anyone in need of a knowledgeable and experienced Investment Recovery Attorney I strongly recommend Howard. Laura
I was filled with anxiety and stress when I selected Attorney Howard Rosenfield to represent me. Instantaneously, I felt comfortable and at ease. Attorney Rosenfield listens attentively to the facts and asks questions and competently reiterates and verifies the accuracy and completeness of my statements. Perseverance, trustworthy and superb legal and communication skills mark Attorney Rosenfield to be one of the best in his field of law. Helen