Notes

Unauthorized trading can be extremely harmful to investors overall as well as to any brokerage firm they work with. When an investor conducts trades in the absence of the client's authorization, it is often referred to as unauthorized trading. There are several different types of investors who can open new accounts for trading without following proper procedures. When dealing with securities fraud, it is extremely important for investors to seek the advice of an experienced, reputable and trustworthy financial securities advisor.
One of the first things you need to do when you suspect or have witnessed fraudulent activity is to contact your MAH Advisor immediately. In order to become an authorized trader, investors need to have an account in which to place their trades. Once you have determined that trading has occurred without your authorization, you should not continue to trade until you have contacted your broker or the relevant financial securities advisors. You should contact the National Futures Association as well as other similar associations to find out what type of reporting and notifications you will need to follow in order to stop unauthorized trading. The more you know upfront the more effective your efforts will be once it comes time to speak with your broker or your securities advisors.

Once you have notified your broker or the relevant financial institution, you will then need to wait until your reports from all the agencies come through. You should then conduct your own investigations on the transactions conducted and whether or not the transactions were performed in your best interest. unauthorized trading lawyer will require you to review all documents related to the transaction. It may also require you to interview or speak with the trader, their broker or anyone else who was involved in the transaction.

If it is determined that some of the transactions did take place due to your oversight, you may be instructed to compensate the losses. Most often this means a fine and/or a suspension of trading until the results of your investigations are available. This can be an extremely embarrassing and stressful situation for investors, especially if they have relied on their sound judgment to make important financial decisions. It also can have a negative effect on your brokerage relationship with your broker. This can be detrimental to the continued success of your account and can lead to a permanent decrease in your ability to trade.

For investors who feel that their losses were unnecessary and were the result of a mistake by a broker or other investors unauthorized trading will usually be allowed to resume trading after a short period of time. There may be additional charges levied against you in order to recompense your losses. If you have been instructed to repay your broker these costs can prevent you from obtaining any refunds. It is important for investors to remember that there are laws in place that protect them from having their rights violated. If you have been instructed to repay your broker, you should seek legal advice as to your rights and the ramifications of not following those laws.

For investors who have suffered losses through unauthorized trading and are unsure as to the extent of their losses it is wise to consult with a lawyer. You may discover that there is a pattern of investor's unauthorized trading and that you are being accused of trading without proper knowledge. The lawyer can advise you as to your rights and how best to proceed. Alternatively, you can work with your broker to set up appropriate documentation to strengthen your case.
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