New York, NY securities attorney Jenice L. Malecki talks about unauthorized trading, churning, and overconcentration cases. She explains that trading, churning, and over-concentration cases—what she refers to as the “too much” cases—are common issues in brokerage accounts. In unauthorized trading cases, investors often place too much trust in their broker, allowing trades to occur without consultation. She emphasizes that discretion should only be granted through properly executed agreements, ensuring the firm reviews trades appropriately.

In churning cases, brokers engage in excessive trading primarily to generate commissions rather than to serve the investor’s best interest. Over-concentration occurs when too much of a portfolio is invested in a single asset or sector, which can be risky even if that sector appears to perform well in the short term. She cautions that concentrated positions can expose investors to significant losses in a market downturn, and warns that high-commission, high-risk investments may signal motives that are not aligned with the client’s best interest.