Practice Areas

Unauthorized Trading: Did Your Broker Have Permission To Make A Transaction?

A stockbroker is not allowed to buy or sell securities on your behalf without your prior authorization — unless you specifically grant him or her the authority to trade at his or her own discretion. Many brokerage firms will not even allow their financial advisers to undertake such discretionary authority — for fear of the liability that may follow.

Stockbrokers are also not allowed to purchase or sell more of the securities than you order. For example, when you agree to purchase 1,000 shares of stock, your stockbroker should not purchase 1,100 shares.

When you receive your statements, you should review them closely to ensure there are no unauthorized transactions or fund transfers.

Do You Have A Claim?

If you did not give your adviser or stockbroker permission to place a transaction, or if there was no understanding that the trade would be placed, the trade is unauthorized. If your stockbroker made unauthorized transactions in your accounts, it's important to contact a lawyer as soon as possible.

At Mihalek Law, our attorneys have more than 50 years of combined experience handling securities arbitration and litigation matters. Our founding attorney, Charles C. Mihalek, started his careers in the financial district of New York City. At Mihalek Law, we know the industry inside and out. We are Wall Street lawyers located in Lexington, Kentucky, providing investors throughout the country with the strong representation they need.

Contact Us If You Are The Victim Of Broker Fraud

Learn more about the counsel we provide by scheduling a free initial consultation. We can be reached through our contact form or by calling 800-783-1413.