Ohio Lawyers Handling Case Stock Churning and Unauthorized Trading
Many people put full faith in their stockbroker, believing that he or she truly has their best interests at heart. Yet no matter how much you trust your broker, he or she is never permitted to trade on your behalf without your approval or make trades solely to earn a commission. Unauthorized or excessive trading is expressly forbidden by industry regulations.
If you believe that you have suffered a significant investment loss due to unauthorized trading or excessive transactions, also known as stock churning, you may have legal recourse against your financial advisor or brokerage firm.
At Seaman Garson LLC, in Cleveland, Ohio, we represent investors who have been defrauded through stock churning or other forms of stockbroker misconduct. Unlike many litigation firms, we handle most cases on a contingency basis. This means you will not be charged attorney fees unless we are successful in your case.*
Our attorneys have protected the rights and best interests of those victimized by stockbroker misconduct for more than 30 years. Please contact us to arrange a complimentary consultation.
What is stock churning?
Stock churning, the practice of engaging in transactions solely for the purpose of generating commissions, is a common abuse in the brokerage industry. To prove a claim of stock churning, an investor must show the broker exercised actual or de facto control over the churned account and that the trading directed by the broker was excessive.
An analysis is necessary to determine the "turnover" in the account, based on the volume of transactions in a particular period of time, as well as the costs incurred in the account compared to the assets held. An investor can take legal action if excessive transactions were performed to enrich the stockbroker at their expense.
Unauthorized trading
If you notice transactions are occurring in your account without your prior permission or knowledge, those transactions may constitute unauthorized trading. Any transaction that is made in the account without the customer's knowledge or approval, or any transaction that strays from the customer's consent regarding quantity or price, is considered unauthorized trading. Trading without the customer's prior consent is forbidden, unless the customer authorizes the broker in writing to do so. Unauthorized trades may often be voided and the losses recovered.
Referrals accepted
Has your client suffered a serious loss due to misconduct on the part of a stockbroker or investment counselor? We may be able to help. Our firm invites referrals from attorneys and accountants.
Contact Seaman Garson LLC
If you believe that you have been the victim of stock churning or excessive transactions, contact us at 216-592-8741 or 866-409-6215 toll-free with any questions or to arrange a free case evaluation.
*Other than attorney fees clients are responsible for costs of litigation.
