When it comes to securities fraud cases, it seems that one of the more
common issues in the matter is investors not knowing to whom they should
write the check. This is a problem that results in investors often losing
money. It is extremely important for you to know where your money is going
and exactly who is benefitting from it.
Attorney Dave Meyer Explains Why Writing Checks Directly to Brokers Can
Oftentimes, the broker will ask the investor to write the check out to
him or her directly or to the company which they own. This is a mistake.
You should only write the check to the company that will be taking custody
of your funds. This is generally the large brokerage firm that is a trusted
name in the industry. If the broker asks you to make the check payable
to him or her, or the independently owned company, it should be a red flag.
When dealing with a broker or a registered financial advisor, the check
should be made out only to the large institution. While there are some
honest independent brokers and brokerage firms, you should still make
sure that you are writing the check out to a reputable institution that
is serving as the custodian of your assets. You should always perform
enough research to make sure that you can trust the broker or brokerage
firm with which you are working.
Investors who have been requested to write the check out to the broker
are often the victims of securities fraud. If you have lost money in this
manner, our securities attorneys at Meyer Wilson may be able to help.
We aim to recover your losses from the broker who has wronged you. During your
free case review, we can discuss the situation you are involved in and work to determine
if you have a case. Call today to get started.