In cases of conversion, the broker usually takes the customer’s funds without making any real investment. Often, brokers have the trust of their customers, and may use that trust to obtain access to their funds. Converting the customer’s funds – essentially stealing – can occur in a variety of forms. For example, it can occur through the creation of bogus promissory notes from a fictitious company. Conversion may also occur when a broker “borrows” funds from the customer, and fails to pay the money back. All brokerage firms prohibit brokers from borrowing money from their customers.
If you have been the victim of conversion fraud, contact the attorneys at Oakes & Fosher today for a free case evaluation.