Suspect your broker made unauthorized trades?

ODS - 10/5/2023

When you open your account, carefully review the terms and conditions outlined in your account agreement. It should specify the level of control you have over your account and any restrictions on the investment professional’s authority to make trades without your consent. The Oklahoma Department of Securities warns that if you suspect your investment professional has executed unauthorized trades in your investment account, it is essential to take immediate action to protect yourself. Here are some next steps for you to take if you have concerns about unauthorized trading by your investment professional:

Gather Evidence: Start by collecting all relevant documentation related to your investment account. This includes account statements, trade confirmations, emails, and other records that can provide evidence of the trading in your account. The more detailed and comprehensive your documentation, the stronger your case will be.

Document All Communications: Keep a record of all communications with your investment professional, including dates, times, and the content of conversations or emails. This documentation can be valuable in resolving disputes and providing evidence, if necessary.

Contact Regulatory Authorities: If you suspect fraudulent activity, report the matter to the Oklahoma Department of Securities (ODS), the U.S. Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA). File a complaint with the Oklahoma Department of Securities using our online Complaint Form. You can also file a complaint with the SEC using their Complaint Center. Regulatory authorities can investigate and take appropriate actions to address the situation.

Monitor Your Accounts: Continue to monitor your investment accounts closely to detect unauthorized activity. Review your account statements regularly and report any suspicious transactions immediately.

Review Investor Protections: Familiarize yourself with the investor protections provided by regulatory bodies and industry organizations. For example, the Securities Investor Protection Corporation (SIPC) provides insurance coverage for certain brokerage accounts in case of broker insolvency.

The Oklahoma Department of Securities takes unauthorized trading seriously and is dedicated to protecting investors from such practices. By following these steps and seeking assistance when necessary, you can take proactive measures to address unauthorized trading, protect your financial assets, and ensure that your investment professional operates within the bounds of the law and regulatory standards.