Sanctuary Securities, Inc. and broker Chad Keller are currently under investigation by the investment fraud law firm Haselkorn & Thibaut following allegations of misconduct. The customer dispute, filed on February 13, 2024, claims that Keller disregarded the customer’s instructions not to sell their 75 shares of Eli Lilly stock, with 50 shares sold in 2016 and 25 shares sold in 2018.
According to Keller’s FINRA BrokerCheck report, the dispute was denied, and the damage amount requested was not disclosed. Haselkorn & Thibaut is now investigating the case to determine if any violations of FINRA rules or other misconduct occurred. Investment fraud and bad advice from financial advisors can lead to significant losses for investors, as highlighted in a recent Forbes article.
Understanding the Allegation and FINRA Rules
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The customer’s complaint revolves around the alleged unauthorized sale of their Eli Lilly stock by broker Chad Keller. Unauthorized trading occurs when a broker makes trades in a customer’s account without obtaining prior consent or going against the customer’s expressed wishes.
FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Additionally, FINRA Rule 3260 prohibits brokers from making discretionary trades in a customer’s account unless the customer has provided written authorization and the account has been accepted as a discretionary account by the broker’s firm.
The Importance of Broker Misconduct for Investors
Allegations of unauthorized trading are serious, as they indicate a breach of trust between the broker and the investor. When a broker disregards a client’s instructions or makes trades without proper authorization, it can lead to significant financial losses and undermine the investor’s financial goals.
Investors rely on their brokers to act in their best interests and to follow their instructions faithfully. Unauthorized trading erodes the trust that is essential to the broker-client relationship and can leave investors feeling vulnerable and unsure about the safety of their investments.
Recognizing Red Flags and Seeking Help
Investors should be aware of red flags that may indicate broker misconduct, such as:
- Trades made without prior discussion or approval
- Inconsistencies between the investor’s goals and the trades made
- Unexplained or excessive trading activity
- Difficulty reaching the broker or obtaining clear answers about account activity
If investors suspect their broker has engaged in unauthorized trading or other misconduct, they should promptly report their concerns to the broker’s firm and regulatory authorities, such as FINRA. Investors may also benefit from seeking the assistance of an experienced investment fraud law firm, like Haselkorn & Thibaut, to help them navigate the complex process of recovering their losses.
How FINRA Arbitration Can Help Investors Recover Losses
FINRA arbitration is a dispute resolution process that allows investors to seek financial recovery from brokers and brokerage firms for losses caused by misconduct. By filing a claim with FINRA, investors can have their case heard by a neutral panel of arbitrators who have the authority to award damages if wrongdoing is found.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of combined experience representing investors in FINRA arbitration proceedings. With a 98% success rate and a “No Recovery, No Fee” policy, the firm is committed to helping investors recover their losses caused by broker misconduct.
Investors who believe they may have been victims of unauthorized trading or other forms of broker misconduct are encouraged to contact Haselkorn & Thibaut for a free consultation by calling 1-888-885-7162 .
