Legal Question in Securities Law in California

I opened a single account (with money included in a Prenuptial) and a custodial account for my daughter (money from her deceased father; also included in a prenuptial) at a brokerage house several years ago. I was the only one authorized to trade the accounts, no trading authorization forms were signed by me granting a third party rights to trade the account. I recently found evidence that my husband was trading the accounts and confronting the brokerage house, (we are now divorced) I was told it was "common practice" to allow the husband rights to trade the accounts. Is that correct?

Thank you for your input.


Asked on 6/16/10, 5:44 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I sure hope it isn't common practice, because it's illegal.

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Answered on 6/16/10, 10:00 pm
Daniel Bakondi The Law Office of Daniel Bakondi

No. They may have been negligent here. You can stop it by requesting that it stop in writing. Also, do you have damages? If so, you may be able to bring a finra arbitration claim. I work in this area, so you may contact me if you have more questions.

Kind regards,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

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Answered on 6/16/10, 10:45 pm


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