Selling Away and Unregistrered Private Sale of Stock:
It is rare, but every so often a broker will engage in plainly criminal acts like theft,
fraud, and forgery. The broker intentionally devises a plan to steal your
money. Often this scheme will involve what is known as selling away,
meaning the broker’s investment activities are being done on the side and
are not being reported to or approved by the brokerage firm that employs him.
Another method of stealing your money is by unregistred private sales
of stock where brokers sell you investments that don’t exist, or have no chance of becoming successful
from the beginning. He will give you a
stock certificate to make you believe you have something of value, but in reality,
your investment isn’t worth the paper the stock certificate is printed on. You have
the right to seek recovery for any fraudulent conduct that results in brokers selling away and
by misappropriation of your funds into worthless securities.
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