How to Report Unauthorized Trading

You can report unauthorized trading online through a special complaint center set up by the Financial Industry Regulatory Authority (FINRA). After you report unauthorized trading, FINRA may begin an investigation into your complaint, which could result in disciplinary action. 

However, it is critical that you consult with an experienced securities fraud attorney before reporting a claim through FINRA or any other regulatory agency. Reporting a claim to a regulatory agency will almost certainly not result in you recovering money from the advisor or investment firm that engaged in the misconduct. 

To recover damages, you must pursue a civil case in arbitration or court and consult an experienced securities fraud attorney to assist you with that claim. You can learn more about the process of reporting this form of financial misconduct with an unauthorized trading lawyer.

How You Report Unauthorized Trading

If, after consulting with an attorney, you decide to report the unauthorized trading to FINRA, you can use the organization’s website to file a complaint. FINRA has the resources and ability to investigate complaints you make against your brokerage firm, but they do not have the time or resources to investigate every complaint. 

FINRA can take disciplinary action based on your complaint. For example, the agency may issue:

• Suspensions
• Fines
• Restrictions on working in the securities industry

You can get step-by-step information about reporting this form of misconduct from an investment fraud lawyer. 

Should You Report Unauthorized Trading to Other Agencies?

Depending on your situation, you may decide to report unauthorized trading to other agencies that provide oversight in the financial industry. For example, the U.S. Securities and Exchange Commission (SEC) has an online form to report suspected securities fraud or wrongdoing.

Your attorney can provide information about where and how to report unauthorized trading.

Information to Include When You Report Unauthorized Trades

You may need to provide significant information about potentially improper transactions. Depending on your circumstances, FINRA may require personal information like your contact details and full name.

You may also need to provide information like:

• The name of your brokerage firm
• The name of the branch manager at the investment firm
• Dates of any unauthorized transactions
• The number of shares involved in the transaction
• The price for each share involved in the transaction 

Additionally, you may provide information contained in emails or other written communications provided by the investment firm. You may also need to supply trade confirmations, account statements, and other potential supporting documents.

You’ll need to explain your concerns about these trades and why you believe they qualify as unauthorized transactions. For example, you may need to provide details about account discrepancies or strange trading activity.

You can discuss the specific information to provide in your situation by reaching out to an attorney for help. Your lawyer may even help you gather some of the information you need to submit in your report. 

What Happens Once You Report Unauthorized Trading?

FINRA, the SEC, or another agency that received your report regarding unauthorized trading may investigate after you provide information about potential misconduct. These agencies have the power to take action against investment firms that engage in unauthorized trading. 

It takes time for these agencies to determine if an investment firm or advisor has engaged in improper trading. You will not get immediate information about the resolution of your report. Your lawyer can provide more information about possible wait times for your situation. 

You May Seek Compensation for Unauthorized Trades

You can also work with an attorney to seek compensation to cover the financial losses you experience due to unauthorized trading. An attorney can help you build a claim that could bring you funds to pay for all the money you lose due to this form of misconduct. 

Generally, you need to go through FINRA arbitration to secure compensation in this situation. Most investment firms require you to sign an arbitration agreement before they handle financial matters on your behalf. 

These agreements prevent you from filing a lawsuit against the investment firm or your financial advisor. You can learn more about FINRA arbitration with your attorney. 

Attorneys Handle Unauthorized Trading on a Contingency Basis

You can secure legal help with the FINRA arbitration process without worrying about legal fees. Law firms can take on these claims on a contingency-fee basis, so you only pay for legal fees after the conclusion of the arbitration. 

Talk to Us About Unauthorized Trading

Are you wondering how to report unauthorized trading? You can contact our team at Meyer Wilson to get detailed information about how to report this form of misconduct to the proper authorities. 

We can also step in to help with your FINRA arbitration claim against the party that engaged in this type of misconduct. We have over 75 years of combined experience that we can apply to your situation. You can call or complete our online contact form to learn more.