Chicago Unauthorized Trading Lawyer

Was Your Stockbroker “Churning” or Making Rogue Trades?

Brokerage firms and other authorized agents can only execute trades on your behalf if you authorize them. Your broker cannot override your risk tolerance or conduct trades merely to line his or her own pocket with extra commissions. Your broker cannot make a trade without proper authorization from you. If they do, the trade is unauthorized and you may have recourse to reverse it. If a broker trades frequently without regard to your benefit, the account may have been “churned” to generate excessive commissions for the broker, to your detriment.

I am an experienced securities law attorney and formerly worked 18 years for FINRA, the agency that regulates stockbrokers. If you suspect that your investment accounts were dwindled by excessive or unauthorized trades, I can assess your situation and take legal action to recover your losses.

Through securities arbitration, mediation and litigation, I have helped clients recoup investment losses of hundreds of thousands of dollars. Contact me, John C. Barlow, Esq., Attorney at Law, to schedule a free consultation about your rights and remedies.

Illinois Securities Attorney Fighting Back Against Excessive Trading

I have more than 33 years of experience with stockbroker misconduct from my prior career in enforcement and arbitration at FINRA and my eight years as a plaintiff’s attorney for defrauded investors. I can examine the trading history on your accounts and the fees you were charged to uncover patterns and specific instances of unwarranted or illegal trades:

  • Excessive trading (churning) — This refers to activity initiated by the broker/brokerage primarily to generate trading commissions. For example, the stockbroker may make a series of smaller trades rather than one larger transaction, or purchase securities and sell them soon after.
  • Unauthorized trading — If you have a discretionary account, the brokerage can make trades without your approval. However, transactions may be considered unauthorized if they violate your asset allocation, risk tolerance and other written guidelines. If you have a non-discretionary account, the brokerage cannot make any trades without your express permission, except under specific circumstances.

The losses from excessive or unauthorized trades can be twofold — the compounding of “churned” commissions and account losses from unsuitable or over-concentrated investments. Your net losses may constitute a breach of the brokerage’s fiduciary duty to act first and foremost in your best interests in each and every trade.

Contact Chicago Securities Firm for a Free Consultation

I have helped clients recover compensation for excess and unauthorized trading of various investment products, including stocks, bonds, mutual funds, CMOs and CDOs.

For a free initial consultation with a Chicago unauthorized trading attorney, contact me online or call me at (312)214-3365. I take most securities claims on a contingent fee basis, charging lawyer fees only if I recover compensation for your losses.