To Whom Do I Write My Check?
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 Be Dangerous
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.