Broker Misconduct Lawyers in Philadelphia PA | Goldman, Scarlato & Penny P.C.
Broker Misconduct Lawyers in Philadelphia PA
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.
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