Other types of fraud that are more rare include Illegal Accounts. A broker is not permitted to place customer's check or money intended for transactions involving securities into his own account, regardless of the amount of money or the length of time involved. Mishandling customer funds, such as money intended for insurance product or putting the money into the broker's personal account, is a serious violation and could result in prosecution by state or federal criminal agencies.
Brokers also may not create ficticious, park money in another person's account or create false accounts in a misleading fashion.
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