We seek compensation for investors who lost money to broker theft or conversion of customer funds.

Recently, brokers across the country have been permanently barred from the securities industry by the FINRA due to outright theft of customer money. The complexity of these schemes can vary greatly and often include the following:

  • forgery of letters of authorization to transfer funds
  • borrowing funds and refusing to reimburse or pay back loans
  • brokerage firms concealing stockbroker theft
  • unsolicited withdrawals and from customer accounts
  • unauthorized trading in customer accounts

Often brokers steal client funds simply by producing forged letters of authorization, and then move funds from the customer’s account to a second account controlled by the broker. Other cases involve brokers who open unauthorized accounts at other institutions. The broker is listed as a joint account holder, together with the customer, unbeknownst to the customer. The account is then used to receive siphoned funds from the customer’s actual account, which the broker then pockets.

Brokers may also go so far as to change the customer’s address, reroute actual statements from getting to the customer, and producing their own phony statements to show the customer.

Some brokers scam customers by sending an unsolicited withdrawal check from their brokerage account. When the customer sends it back, the broker may deposit it into a different account. Brokers may also borrow funds or take an IOU or promissory note which is not paid back.

Other schemes include recommending a non-existent security or investment fund, setting up a bank account with the issuer’s name, forging false statements, and then putting the customer’s investment into their own personal accounts. Unauthorized trades comprise any trades that a brokerage firm or investment advisor make on behalf of a customer with their proper consent.

Brokerage firms may find brokers stealing cash from clients or securing unauthorizes loans from customers, but may attempt to hide such acts from regulatory agencies to avoid repaying customers or the legal repercussions from regulatory agencies.

Often times, brokers or brokerage firms who engage in said misconduct are repeat offenders, and many other clients have often faced similar mistreatment or outright fraud. Unfortunately, brokers and brokerage firms may also try to bully the victims into accepting the consequences of their illegal behavior or taking a small settlement payment to give up their claims arising out of egregious misconduct.

If you believe you may have lost money due to brokerage theft contact us for a free, no-obligation consultation regarding your legal situation and potential recovery options, by phone at 888-998-0530, via email at arosca@roscalaw.com, or through the contact form on this page.