Overview
On May 18, 2026, a FINRA arbitration panel awarded a customer $787,414.00 in compensatory damages against Charles Schwab & Co., Inc. related to his claim that funds were removed from his brokerage account without his authorization.
When A Brokerage Firm Fails To Safeguard Customer Funds
Brokerage firms occupy a position of trust with respect to the custody of customer assets. Claims like conversion and breach of the covenant of good faith and fair dealing exist precisely because a customer’s brokerage account is supposed to be a secure place to hold assets, not one where money can disappear without the customer’s authorization and without meaningful recourse. Firms often resist these claims by pointing to account agreements that purport to limit their liability, but arbitration panels routinely reject the notion that boilerplate contract language excuses a firm from its basic obligation to prevent unauthorized access to and removal of customer funds.
Impacted Investors
For investors who discover unexplained withdrawals, transfers, or shortfalls in their brokerage accounts, prompt action matters. If you have experienced an unauthorized withdrawal, transfer, or other unexplained loss of funds in a brokerage account at Charles Schwab, or any brokerage firm, you may have a claim for failing to safeguard your assets and failing to supervise the handling of your account. Belfort Law, PLLC represents investors in FINRA arbitration claims against broker-dealers for unauthorized account activity, conversion of customer funds, and related supervisory failures. Contact our office at (800) 556.3526 or through our website for a free, confidential consultation to discuss your options before time runs out on your claim.