Joel Freedman, a former broker at Morgan Stanley, has been accused of executing unauthorized trades in a client’s account between 2023 and 2024. The client has alleged that Freedman made trades in their account without proper consent or authorization, violating FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade. The customer dispute, which was settled on January 24, 2024, involved equity listed options.
According to Freedman’s BrokerCheck record, he was registered with Morgan Stanley (CRD 149777) in Pennsylvania from June 1, 2009, to March 28, 2024. The client’s allegations suggest that Freedman breached his fiduciary duty and acted against the client’s best interests by executing trades without proper authorization. Unauthorized trading is a serious violation of industry regulations and can result in significant financial losses for investors.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Joel Freedman and Morgan Stanley in connection with these allegations. The firm encourages any clients who may have suffered losses due to Freedman’s alleged misconduct to contact them for a free consultation at 1-888-885-7162 . Investment fraud and bad advice from financial advisors can have devastating consequences for investors, and it is crucial to seek legal guidance from experienced professionals.
Understanding Unauthorized Trading and Its Consequences
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Unauthorized trading occurs when a broker executes trades in a client’s account without obtaining the client’s prior consent or approval. This practice violates FINRA rules and may result in disciplinary action against the broker. When a broker engages in unauthorized trading, they may be exposing the client to excessive risk or making decisions that do not align with the client’s investment objectives and risk tolerance, potentially leading to significant financial losses.
The Importance of Proper Authorization and Documentation
Brokers are required to obtain explicit authorization from clients before executing any trades on their behalf. This authorization should be documented in writing, either through a power of attorney or a trading authorization form. Verbal authorizations may be acceptable in some cases, but they should be followed up with written confirmation to avoid any misunderstandings or disputes. Clients should carefully review their account statements and trade confirmations to ensure that all transactions align with their investment objectives and risk tolerance, and immediately contact their broker or the firm’s compliance department if they notice any discrepancies or unauthorized trades.
Protecting Yourself from Investment Fraud and Unauthorized Trading
To minimize the risk of falling victim to investment fraud or unauthorized trading, investors should take the following steps:
- Carefully review and understand all account opening documents and trading authorization forms before signing them.
- Regularly monitor account statements and trade confirmations to identify any unauthorized or suspicious activity.
- Maintain open communication with your broker and ask questions about any trades or strategies you do not understand.
- Keep detailed records of all communications with your broker, including emails, phone calls, and in-person meetings.
Recovering Losses Through FINRA Arbitration
If you have suffered losses due to unauthorized trading, investment fraud, or other forms of broker misconduct, you may be able to recover your losses through FINRA arbitration. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover their losses through this process. FINRA arbitration is a faster and more cost-effective alternative to traditional litigation, allowing investors to present their case before a neutral panel of arbitrators with expertise in securities law and the financial industry.
Don’t let broker misconduct or investment fraud jeopardize your financial future. Contact Haselkorn & Thibaut today at 1-888-885-7162 for a free consultation, and their experienced attorneys will review your case and help you understand your legal options.
