Dear John Chapman,

Dear John Chapman,

I have a broker that I am now realizing stole over $200/month from one of my accounts.

He claims it was a “management fee”, but I never authorized such a fee. Do I have a case against him?

-Nervous in Nashville

Dear Nervous,

Yes. In a situation where a professional in charge of your finances has committed any kind of fraud or theft, it is possible to bring forward a case against that person. Many, if not all brokerage firms, have strict internal policies forbidding their brokers from borrowing or taking money from clients. Too often, brokers view their clients’ assets as a pool of ready capital from which they may take advantage. FINRA Rule 2010 requires registered persons to observe high standards of commercial honor and just and equitable principles of trade. In this case, it does not sound like your broker was doing so.

Sincerely,
John Chapman

John S. Chapman

If you have a question for John Chapman, please email it to
dearjohn@johnschapman.com

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