Under most circumstances, stockbrokers and investment advisors are required to have authorization from a client to purchase or sell securities in client accounts. The exception is if you specifically give your broker or advisor written authority for discretionary trading in your account. Unless, you gave your broker discretionary authorization, any purchases made in your account without your knowledge or permission is a clear violation. If you lose money as a result of such an unauthorized trade, you have a claim against the stockbroker and his firm for the loss.
Even if you have given your broker discretionary authority on your account, they are supposed to follow your orders with respect to the discretionary power. For example, if your broker has discretionary power but you told him not to purchase anything on margin, or not to over-concentrate your account with any one security, and they didn’t follow these instructions, you likely have a claim against your stockbroker or investment advisor and their firm.
If you have been the victim of unauthorized trades in your investment account it is important to seek legal help immediately. Any hesitation in filing a complaint and seeking legal help may be viewed negatively by arbitration panels and courts.
Contact Mark & Associates, P.C. today to have your unauthorized trades case evaluated for free by an experienced stockbroker fraud securities lawyer. Please complete the case evaluation form on the right side of this page or call 1-866-50-RIGHTS (1-866-507-4448) to have your case reviewed.