JOHN LAWRENCE ALLEN, ESQ

For Securities Fraud & Broker Fraud Call:

1.800.345.1888

Excessive

  • John Lawrence Allen
Broker Fraud & Excessive Activity Excessive Activity Fighting Back Against Broker Misconduct

Brokers have a duty to place their clients’ interests ahead of their own. When a broker engages in excessive activity, typically for the purpose of generating additional commissions, the broker violates that duty. This violation means that both the broker and the brokerage firm may be held liable for any losses that arise out of such excessiveness.

What is excessive activity?

Excessiveness is typically determined by evaluating your account’s annual turnover rate...

  • John Lawrence Allen
Broker Fraud & Churning What Is Churning? Investment Fraud Lawyer for Churning Cases

Brokers have a duty to place their clients’ interests ahead of their own. When a broker engages in excessive trading, typically for the purpose of generating additional commissions, the broker violates that duty through an activity called “churning.” This violation means that both the broker and the brokerage firm may be held liable for any losses that arise out of the churning of the account.

DEFINITION OF CHURNING

Excessive trading by...

  • John Lawrence Allen
Broker Fraud & Margin Trading What Is Margin Trading?

Answers from a Broker Fraud Attorney

What is “Buying on Margin?”

Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you’d be able to normally. To trade on margin, you need a margin account. This is different from a regular cash account, in which you trade using the money in the account....

  • John Lawrence Allen
Broker Fraud & Unauthorized Trading Unauthorized Trading  – Explained by a Stockbroker Fraud Lawyer

In most cases, unless an investor has granted a broker written authorization to make transactions on his or her behalf without prior approval, the broker must obtain permission from the investor prior to executing any orders. A broker who buys or sells securities in an investor’s account without the prior consent of the investor has engaged in unauthorized trading unless the broker has “discretionary trading authority” through a...