Unauthorized Trading

What is unauthorized trading?

Unauthorized trading occurs when a broker who does not have discretionary trading authority over an account undertakes a trade without obtaining the client’s prior approval. Unauthorized trading is often a means to another end, such as churning or misappropriation of assets.

 

Is my broker responsible for losses resulting from unauthorized trading?

Generally, the answer is yes. If the broker acted intentionally (i.e., he knew that the trade had not been approved), the claim is likely to sound in fraud. If the broker simply made a mistake, the claim is likely to sound in negligence.

 

Can I consult with a lawyer about unauthorized trading?

If you have suffered losses as a result of unauthorized trading, you should contact an experienced securities law attorney immediately. We have attorneys who specialize in these types of cases. If you would like to set up a free consultation, please call Daniel J. Broxup at (616) 632 8059.