If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRAs Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Delaware city: Wilmington, Delaware.
The Delaware Department of Justice, Securities Division, in Wilmington, Delaware, regulates the sales of securities in the state of Delaware. Its website provides information on state securities Statutes and Rules, and information on how to file a complaint.
Delawares Securities Act is similar to many states Acts with regard to providing for civil liability for the commission of securities fraud in the sale of securities (including untrue statements of material fact or omissions of material fact). The statute provides for rescission (or damages if the investor no longer owns the security), reasonable attorneys fees, and interest.
The Civil Liability section of the Delaware Securities Act is as follows:
§ 7323. Civil liabilities.
(a) Any person who:
(1) Offers or sells a security in violation of § 7313, § 7304 or § 7311(b) of this title, or of any rule or order under § 7312 of this title which requires the affirmative approval of sales literature before it is used, or of any condition imposed under § 7306(d) of this title.
(2) Offers, sells or purchases a security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statement made, in the light of the circumstances under which they are made, not misleading (the buyer or seller not knowing of the untruth or omission), and who does not sustain the burden of proof that the person did not know, and in the exercise of reasonable care could not have known of the untruth or omission, is liable to the person buying or selling the security from or to him or her, who may sue either at law or in equity to recover the consideration paid for the security, together with the interest at the legal rate from the date of payment costs, and reasonable attorneys' fees, less the amount of any income received on the security, upon the tender of the security, or for damages if he or she no longer owns the security.
(b) Every person who directly or indirectly controls a seller or buyer liable under
subsection (a), every partner, officer, or director of such a seller or buyer, every person occupying a similar status or performing similar functions, every employee of such seller or buyer who materially aids in the sale, and every broker-dealer or agent who materially aids in the sale or purchase are also liable jointly and severally with and to the same extent as the seller or buyer, unless the nonseller or nonbuyer who is so liable sustains the burden of proof that the person did not know, and in exercise of reasonable care could not have known, of the existence of the facts by reason of which the liability is alleged to exist. There is contribution as in cases of contract among the several persons so liable.
(c) Any tender specified in this section may be made at any time before entry of
(d) Every cause of action under this chapter survives the death of any person who
might have been a plaintiff or defendant.
(e) No person may sue under this section more than 3 years after the contract of sale.
No person may sue under this section if the buyer received a written offer, before suit and at a time when the buyer owned the security, or if a seller received a written offer before suit, to refund the consideration paid together with interest at the legal rate from the date of payment, less the amount of any income received on the security, and the seller failed to accept the offer within 30 days of its receipt, or if the buyer received such an offer before suit and at a time when the buyer did not own the security, unless the buyer rejected the offer in writing within 30 days of its receipt.
(f) No person who has made or engaged in the performance of any contract in violation of any provision of this chapter or any rule or order hereunder, or who has acquired any purported right under any such contract with knowledge of the facts by reason of which its making or performance was in violation may base any suit on the contract.
(g) Any condition, stipulation, or provision binding any person acquiring any security to waive compliance with any provision of this chapter or any rule or order hereunder is void.
(h) The rights and remedies provided by this chapter are in addition to any other rights or remedies that may exist at law or in equity.
FINRA securities brokerage firms with their main offices in Delaware:
5809 KENNETT PIKE, WILMINGTON, DE 19807
DUPONT CAPITAL MANAGEMENT MARKETING CORPORATION
DELAWARE CORPORATE CENTER, ONE RIGHTER PARKWAY, SUITE 3200, WILMINGTON, DE 19803-1534
LEE FINANCIAL SECURITIES, INC.
2756 WOODLAWN DRIVE, SUITE #6-201, HONOLULU, HI 96822-1856
Mailing Address: 503 BLACKBIRD DRIVE, HOCKESSIN, DE 19707-2053
MONADNOCK SECURITIES, LP
219 WEST NINTH STREET, # 220, WILMINGTON, DE 19801