If you are an investor who has had dealings with Ameriprise stockbroker James Dunn and has either suffered losses or suspected wrongdoing, you are advised to seek expert guidance. At Haselkorn & Thibaut, we have been contacted by several victims of the Virginia-based broker and are undertaking free reviews of their cases.
Dunn has a chequered recent record in the industry. After being terminated by Wells Fargo because of “concerns regarding mutual fund trades that were marked unsolicited at the time the trades were entered” Dunn joined Ameriprise Financial Services. He resigned from Ameriprise at a time the firm was investigating him for issues related to unauthorized trades, suitability as well as texting with clients.
If you or a loved one invested with James Dunn, please contact us for a free consultation with one of our investment fraud lawyers. Our nationwide toll-free number is 1-800-856-3352.
What is unauthorized trading?
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Unauthorized transactions or unauthorized trading are when a broker sells or buys securities without authorization from the investor-client. Unauthorized trading is prohibited by the Financial Industry Regulatory Authority (FINRA). FINRA Rule 2010 establishes the standards for commercial ethics and trade principles. The broker must discuss any trades with an investor prior to executing them unless the investor has granted the broker discretion.
FINRA Rules 2510(b), 2020 specifically prohibit brokers from placing discretionary trades in customers’ non-discretionary accounts. Unauthorized trading is also a violation of just and equitable principles and trade. It also violates Rule 10b and 10b-5 because it is fraudulent. One court stated that no omission could have been more significant than failing to notify the investor about his sales and purchases. It is important to remember that laws regarding unauthorized trading can vary from one state to the next.
There are many ways that unauthorized trading could occur. Unauthorized trading can occur in many different situations. For example, investment advisors may mark unapproved trades as unsolicited. This means that the broker gives the impression that the trade was requested by the investor and that the trade idea came from the client. Brokers may enter trades and try to get consent from clients after they have completed the trade. Sometimes, brokers may agree to an investment strategy but then feel that they don’t need to contact the client after each trade. These are examples of unapproved trading strategies.
What can investors do?
Unauthorized trades are considered to be a serious violation of industry rules. The brokerage firm, that has a responsibility for supervising their registered representatives, can also be held liable for broker actions like unauthorized and unsuitable trades in customer accounts. Dunn is facing action by 5 customers for a total claim of over $1.5 million.
Investors have many options. FINRA arbitration can be used to pursue claims against brokers or brokerage firms for unauthorized trading. The amount of damages can vary from out-of pocket losses, interest, and attorney’s fees to market-adjusted damages. Market-adjusted damages (also known as properly managed account damages or lost profits damages) are the money that an investor would have made if he had a properly managed portfolio, less the amount of the investor’s loss. An investor would subtract the amount earned from the unauthorized trade from the amount he would have made if the transaction had not occurred.
The services of Haselkorn & Thibaut lawyers are available to investors seeking recovery of losses arising out of negligence, fraud, and misconduct of their brokers. Not only do we dedicate two lawyers to each case, along with a securities arbitration paralegal, but clients also need to pay us only if a recovery is made.
If you believe you could have been adversely impacted on account of having had dealings with James Dunn, contact us today. You can reach us at 1-800-856-3352.
