Unauthorized Trading

What is unauthorized trading?

In general, unless an investor has given written authorization for their broker to make transactions on their behalf without prior approval, a broker must get permission before they execute any orders. Unauthorized trading occurs when a broker purchases or sells securities in a customer’s account without first obtaining the customer’s consent.

How do you know if you have an unauthorized trading claim?

If you have suffered a loss as a result of unauthorized trading, you could have a legal claim against the broker and/or brokerage firm. Even in cases where an investor has granted a broker authorization to make transactions on the investor’s behalf at the discretion of the broker, the broker cannot misuse or exceed that authority by making commissions from excessive trading or “churning,” recommending unsuitable investment strategies, or making trades the broker was not authorized to make. To do so is a violation of the broker’s duty to the investor and subjects the broker to liability for unauthorized trading. If you believe your broker has engaged in unauthorized trading, it’s best to contact an attorney who can help determine whether your investment loss was the result of unauthorized trading in your brokerage account.

Take the next steps to find out if you have a claim:

Step 1.

Talk to an Experienced Attorney Today

Call and speak to one of our attorneys* for a no-cost consultation to discuss your situation, answer your questions, and help you determine the next steps. This call usually takes about 15 minutes, but we are happy to talk to you as long as you would like!

Step 2.

Quick Review of Your Paperwork

If we think you might have a case, we will need to review a few basic documents. If we determine you have a case, then you will have the option to hire us as your attorneys to pursue it.

Step 3.

Signed Attorney/Client Agreement

If you decide to hire us to pursue your case, we will have you sign an attorney-client agreement so we can begin the process of trying to recover your losses.*

*In the vast majority of cases, our agreement is contingent – meaning you won’t owe us any money unless we recover money for you.

Request a Consultation

This site contains attorney advertising. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. Each client and each client’s case is unique, and no result or outcome is or can ever be guaranteed. The information provided in this website is offered for general information purposes only; it is not offered as and does not constitute legal advice in any way. // Disclaimer