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Did your broker engage in unauthorized investments on your behalf?

Unauthorized Trading.  It’s just what it sounds like.

Someone you are paying to be responsible with your investments makes transactions without your knowledge and permission.


Brokers and investment firms hold a great deal of power, and abuse or negligence of that power can be devastating. Unfortunately unauthorized trading is one of the most highly reported investor concerns.  That’s why we at Fishman Investment Fraud Lawyers make it our business to hold brokers and investment firms accountable when they engage in unethical and illegal behaviors with your money. No matter how much experience you have in investmentment trading, being an investor means it is imperative that you know the signs of and action steps to take to protect your interests.

Signs of unauthorized trading:

  • Your broker either chose not to get ahold of you, or couldn’t get ahold of you to approve a trade, but made the transaction anyway. Now they are requesting your approval for a trade after the fact.
  • You receive the required notification that a transaction was made in your account, but you don’t remember ever approving it.
  • Your monthly account statements are reflecting activity that you do not recognize and have not given approval for.
  • Be on the lookout for whether your broker is investing in products that are not approved – either by you or by the firm. The investment firm has safeguards in place to only allow investments in products the firm has reviewed with due-diligence and found to be safe for consumers. Make sure that the products your broker is recommending or investing in are approved by you and also approved by the investment firm.

What’s in it for the brokers?

Brokers make a commission on the trades they execute, and unauthorized trading is a way for brokers to chase their own profits. It is important to recognize that while brokers and advisers are supposed to act in your best interest, their relationship to you and your accounts is inherently biased. They will also be striving to create a profit for themselves.


Protect Yourself From Unauthorized Trading

  1. Closely review all communications you receive from your investment firm. This should include your monthly account statements as well as all transaction-related records. Be sure to keep these communications for your records.
  2. Keep your own careful, detailed documentation of all of your conversations with brokers. Include dates and times. Keep them organized and stored in a safe place that you can also access quickly if you needed to.
  3. When you communicate with your broker about your investment goals and decisions, be concise, clear, and repetitive when you state your desires. Leave no room for them to doubt what your exact wishes are.
  4. If there are any transactions that you don’t recall giving permission for, it is important take immediate action.


If you think your broker has engaged in unauthorized trading, Fishman Investment Fraud Lawyers recommends contacting an experienced attorney immediately for a free case consultation.

You do not have to go through this alone. An attorney can advocate, advise and represent your interests every step of the way through this process. You deserve support and protection of your rights and financial wellness.

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