Sacramento, CA asked in Securities Law for California

Q: My broker disappeared after I discovered fraudulent misrepresentations associated with my account. Who do I sue if I

don't know his current whereabouts?

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2 Lawyer Answers
Steve A. Buchwalter
Steve A. Buchwalter
PREMIUM
Answered
  • Securities Law Lawyer
  • Encino, CA
  • Licensed in California

A: If there is wrongdoing, the brokerage firm he was associated with would be responsible.

Alex Schmidt
Alex Schmidt
PREMIUM
Answered
  • Securities Law Lawyer
  • Cranford, NJ

A: You may be able to file a claim against the broker dealer your broker was employed with. If your broker worked at a licensed broker dealer then certain claims you have against the broker can also be leveled against the brokerage firm in a FINRA arbitration. The brokerage firm may be responsible to pay the damages or investment losses in your account caused by the fraudulent activity if a panel of arbitrators concludes that fraudulent misrepresentation did in fact occur. If your broker was operating under his own auspices as an independent registered investment advisor things can become more problematic. Much will depend on whether the advisor was acting as anyone's agent when committing the fraud in your investment account. If your broker was operating completely independent under his own auspices you can still sue your missing broker but recovery of your lost assets will depend on a number of factors. To provide the best response more information is needed concerning your broker.

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