Professional Counsel When Dishonest Brokers Sell Away Securities
Holding brokers liable for selling unauthorized securities
Dishonest brokers sometimes try to get around the compliance laws of the firm they work for by selling securities the firm doesn’t hold or offer. Stockbrokers may also try to sell non-firm securities in order to obtain a commission. Brokers who try to circumvent investment firm compliance requirements should to be held accountable for all the financial harm they cause. Companies that let brokers get away with this misconduct should also be held accountable for the harm the brokers caused.
The Frankowski Firm has the financial acumen to understand when brokers aren’t following the laws. When brokers convince investors to purchase illegitimate securities, or securities that have not been approved by the broker’s company, investors should fight back. We can help investors recover money lost by unscrupulous brokers that engage in selling away
What are the “signs” that the broker might be selling away securities?
Some red flags supervisors should look for to detect selling away, according to the SEC Division of Market Regulation, Staff Legal Bulletin No.17 (Remote Office Supervision) (March 22, 2004), are:
- Complaints by prior customers
- A focus on elderly investors
- A concentration in highly illiquid or risky investments
- A major change in the kinds of investments recommended especially by one representative in a remote office
- An unexpected or unexplained improvement in production by a registered representative
- Unexpected or unexplained transfers between customer’s accounts or to or from the account of the registered representative
- A registered representative who has had disciplinary actions
- Substantial customer investments in one or a few securities or mutual fund shares inconsistent with firm policies
- Inconsistent trading compared to customer objectives or frequent switching of mutual fund or annuity products
If a broker engaged in selling away, our team can bring a claim against the brokerage firm for failure to supervise the broker and for vicarious liability.
Contact the Frankowski Firm to speak with an experienced securities fraud attorney
For help determining proving fraud and obtaining a financial recovery that allows you to stop worrying, call The Frankowski Firm at 888-741-7503 today. You can also complete our contact form.