Broker Theft

An interior view of a building featuring tall, classical columns under a dim light offers a solemn ambiance. The upper walls are decorated with intricate patterns and architectural details that evoke the meticulous care akin to employment litigation and counseling.

Introduction

When you entrust a broker with your investments, you expect them to act with integrity and professionalism. Unfortunately, not all brokers uphold these standards. Broker theft is one of the most egregious forms of financial misconduct, where a broker unlawfully takes or misuses a client’s assets for personal gain. This type of fraud can have devastating financial consequences, especially if it goes unnoticed for an extended period. If you suspect that your broker has stolen from you, it is crucial to take immediate action.

At Girard Bengali, APC, our experienced securities attorneys are dedicated to helping investors recover losses resulting from broker theft. We understand the complexities of these cases and have the resources and expertise necessary to pursue justice on behalf of our clients. Whether you are an individual investor or an institution, we are here to hold the responsible parties accountable and secure the compensation you deserve.

Understanding Broker Theft

Broker theft can occur in various ways, each involving the unauthorized use or misappropriation of a client’s funds or securities. At Girard Bengali, APC, we have successfully represented clients in numerous broker theft cases, including:

Unauthorized Withdrawals

Brokers may steal from clients by making unauthorized withdrawals or transfers from their accounts. This can involve transferring funds to the broker’s personal accounts or to third parties without the client’s knowledge or consent.

Misappropriation of Funds

In some cases, brokers may convince clients to invest in nonexistent or fraudulent investments, pocketing the funds instead of investing them as promised. This type of fraud often involves creating fake account statements or other documentation to conceal the theft.

Forgery and Alteration of Documents

Brokers may forge a client’s signature on checks, withdrawal slips, or account transfer forms. They may also alter documents to make unauthorized transactions appear legitimate.

Ponzi Schemes

Some brokers engage in Ponzi schemes, where they use funds from new investors to pay returns to earlier investors, creating the illusion of a profitable investment. In reality, the scheme collapses when there are not enough new investors to sustain it, leaving many victims with significant losses.

Conversion of Securities

Brokers may convert, or illegally transfer, a client’s securities for their own benefit. This can include selling the securities without authorization and using the proceeds for personal gain.

Selling Away

“Selling away” refers to selling an investment that is not offered or approved by the broker’s firm. This allows the broker to avoid oversight, raising the possibility of misuse of funds. For instance, suggesting an investment without disclosing that the broker controls or benefits from the investment may constitute broker theft.

Improper Borrowing From Clients

Brokers are generally prohibited from borrowing money or securities from clients without proper authorization. However, some brokers may solicit loans from clients, creating a conflict of interest and risking financial harm.

Taking Action Against Broker Theft

Broker theft is a serious violation of trust and can result in substantial financial loss. If you suspect that you have been a victim of broker theft, it is essential to take swift action. The attorneys at Girard Bengali, APC, are committed to helping you recover your stolen assets and hold the responsible parties accountable.

We approach each broker theft case with the attention and dedication it deserves. Our team of skilled attorneys has extensive experience in securities law and financial fraud, enabling us to navigate even the most complex cases. We will guide you through the legal process, from investigating the theft to pursuing claims through arbitration or litigation. Our goal is to help you regain control of your finances and secure the justice you deserve.

Contact Our Experienced Securities Attorneys

If you suspect that your broker has stolen from you, do not wait to seek legal counsel. The sooner you act, the better your chances of recovering your losses. The attorneys at Girard Bengali, APC, are here to provide the expert guidance you need to protect your investments and hold the responsible parties accountable. To arrange a confidential consultation, please call 866-778-6821 or contact us online. We are ready to fight for your rights.