Investor Resources
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Washington, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Washington, including Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Yakima, Kirkland, and Bellingham.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Washington city, Seattle.
The Washington State Division of Securities regulates the securities industry in Washington. Its website states that its primary mission is to protect the investing public and promote confidence in the capital markets. The website further allows customers to file a complaint against their financial advisor and links to Washington's Securities laws and Regulations.
Similar to many other states, the Securities Act of Washington provides for civil liability for misrepresentations and omissions of material fact in the sale of securities and securities fraud, and provides for rescission damages, interest and attorneys fees.
Common Legal Claims by investors against their financial advisors in Washington are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Ohio, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Ohio, including Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Parma, Canton, Youngstown, and Lorain.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in three Ohio cities, Columbus, Cincinnati, and Cleveland.
The Ohio Department of Commerce, Division of Securities regulates the securities industry in Ohio. Its website states "The Division licenses broker-dealers, securities salespersons, investment advisers, investment adviser representatives and investment officers. The Division also registers securities offered for sale to Ohioans. When Ohio securities law is violated, the Division can pursue administrative actions, civil injunctive actions and criminal referrals. Ohio is considered a model state in its licensing, registration, and enforcement practices." The website further allows customers to file a complaint against their financial advisor and links to Ohio's Securities laws and Rules.
Common Legal Claims by investors against their financial advisors in Ohio are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Michigan, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Michigan, including Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Clinton, Flint, Dearborn, Canton, and Livonia.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Michigan city, Detroit.
The Michigan Securities and Audit Division regulates the securities industry in Michigan. Its website states that it "oversees the registration of individuals and entities that provide investment-related advice to Michigan residents, the registration and exemption of products, and investigates complaints related to securities." The website further allows customers to file a complaint against their financial advisor and links to Michigan's Uniform Securities Act and associated Rules.
Michigan's Uniform 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 and omissions of material fact). The Act provides for rescission (or damages if the investor no longer owns the security), reasonable attorneys fees, and interest.
Common Legal Claims by investors against their financial advisors in Michigan are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Louisiana, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Louisiana, including New Orleans, Baton Rouge, Shreveport, Metairie, Lafayette, Lake Charles, Bossier City, Kenner, Monroe, and Alexandria.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Louisiana city, New Orleans.
The Louisiana Securities Division of the Office of Financial Institutions regulates the securities industry in Louisiana. Its website states that it "registers securities offerings for sale to the public and licenses broker-dealers, agents, and investment advisers. Working in close cooperation with the Financial Industry Regulatory Authority and the United States Securities and Exchange Commission, this section also investigates and originates enforcement actions regarding unfair practices, complaints, and violations of law regarding a variety of securities activities." The website further allows customers to file a complaint against their financial advisor and links to Louisiana's Securities Law and securities Rules and Regulations.
Louisiana's Securities Law 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 and omissions of material fact). The Act provides for rescission (or damages if the investor no longer owns the security, reasonable attorneys fees, and interest.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Missouri, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Missouri, including Kansas City, St. Louis, Springfield, Columbia, Independence, Lee's Summit, O'Fallon, St. Joseph, St. Charles, and St. Peters.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in two Missouri cities, St. Louis and Kansas City.
The Missouri Secretary of State, Securities Division regulates the securities industry in Missouri. Its website states that it "seeks to protect Missouri investors from fraud through the enforcement of the securities laws with an emphasis on restitution for investors." The website further provides a means for customers to file a complaint against a securities broker or firm, and provides links to the Missouri Securities Act and Regulations. https://www.sos.mo.gov/securities
Missouri's Uniform 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 and omissions of material fact). The Act provides for rescission (or damages if the investor no longer owns the security, reasonable attorneys fees, and interest.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including New Mexico, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of New Mexico, including Albuquerque, Las Cruces, Rio Rancho, Santa Fe, Roswell, Farmington, South Valley, Hobbs, Clovis, and Alamogordo.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one New Mexico city, Albuquerque.
The New Mexico Securities Division of the Regulation and Licensing Department regulates the securities industry in New Mexico. Its website states that it reviews and processes applications, investigates complaints, handles public inquiries, and takes administrative actions against securities professionals. The website further provides a means for customers to file a complaint against a securities broker or firm, and provides links to the New Mexico Securities Act and Regulations. http://www.rld.state.nm.us/securities-division/Investors.aspx
New Mexico's Uniform 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.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Utah, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Utah, including Salt Lake City, West Valley City, Provo, West Jordan, Orem, Sandy, St. George, Ogden, Layton and South Jordan.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Utah city, Salt Lake City.
The Utah Division of Securities regulates the securities industry in Utah, and states as follows regarding its mission: "The Division seeks to create a level playing field in the investment industry and ensure minimum standards of competence, training, and fair-dealing by issuing licenses to broker-dealers and investment advisers and all of their agents and representatives..." Its website provides information on Utah Securities Laws and Regulations, and provides a means for customers to file complaints against their financial advisors. https://securities.utah.gov/index.html
Utah's Uniform 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.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Arkansas, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Arkansas, including Little Rock, Fort Smith, Fayetteville, Springdale, Jonesboro, Rogers, Conway, Bentonville, Pine Bluff, and Hot Springs.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Arkansas city, Little Rock.
The Arkansas Securities Department's Mission Statement is: "Promote an environment in which the securities and financial markets within the department's jurisdiction function efficiently and without necessary regulatory impediments and in which the Department protects the financial well-being of Arkansas citizens through effective consumer protection and education." Its website (http://www.securities.arkansas.gov/default.asp) provides information on Arkansas state securities Statutes and Rules, and information on how to file a complaint.
The Securities Act of Arkansas 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.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
This list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Arizona, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Arizona, including Phoenix, Tucson, Chandler, Mesa, Scottsdale, Gilbert, Glendale, Tempe, Peoria, Surprise, and Yuma.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Arizona city, Phoenix.
The Arizona Securities Division "strives to preserve the integrity of the financial marketplace through investigative actions as well as the registration and oversight of securities, securities dealers, and salespersons, and investment advisors and their representatives" and to "deter financial fraud." Its website (https://azcc.gov/securities) provides information on Arizona state securities Statutes and Rules, and information on how to file a complaint.
The Securities Act of Arizona 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.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
This list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Nevada, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Nevada, including Las Vegas, Reno, Henderson, Paradise, Spring Valley, Sunrise Manor, Enterprise, Sparks, and Carson City.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in two Nevada cities, Las Vegas and Reno.
The Nevada Secretary of State, Securities Division describes its goals as follows: "The goals of the Securities Division of the Office of the Secretary of State are to ensure the integrity of the securities marketplace through investigative actions as well as the registration and oversight of securities, securities brokers and dealers, investment advisors and their representatives; to enhance legitimate capital formation; and to minimize the burden and expense of regulatory compliance by legitimate businesses." Its website provides information on Nevada's Securities Act and Rules, and information on how to file a complaint: https://www.nvsos.gov/sos/investor-information
Nevada's 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.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Kentucky, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Kentucky, including Louisville, Jefferson County, Lexington-Fayette, Bowling Green, Owensboro, Covington, and Richmond.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Kentucky city, Louisville.
The Kentucky Department of Financial Institutions, Division of Securities regulates broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives in Kentucky. Its website: https://kentucky.gov/government/Pages/AgencyProfile.aspx?Title=Department+of+Financial+Institutions provides information on state securities Statutes and Rules, and information on how to file a complaint.
The Kentucky Securities Act, Kentucky Statutes 292.480, 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.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including Illinois, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Illinois, including Chicago, Aurora, Naperville, Joliet, Rockford, Springfield, Elgin, Peoria, Champaign, Waukegan, Cicero, and Bloomington.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Illinois city, Chicago.
The Illinois Secretary of State regulates broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives in Illinois and is responsible for the regulation of the securities industry in Illinois and protection of investors by ensuring compliance with the law and investigating any complaints of fraud or improper practices. Its website: https://www.cyberdriveillinois.com/departments/securities/ provides information on state securities Statutes and Rules, and information on how to file a complaint.
The Illinois Securities Law of 1953, 815 ILCS 5/13, 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.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent Virginia residents in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Virginia, including Northern Virginia, Virginia Beach, Chesapeake, Norfolk, Fairfax, Abington, Arlington, Richmond, Newport News, Hampton Roads, Alexandria, Roanoke, Suffolk, Lynchburg, Centreville, Dale City, Reston, Loudoun/Leesburg, Harrisonburg, Ashburn, McLean, Henrico, Chesterfield, Staunton, Williamsburg and Charlottesville.
If an individual investor has a dispute with a FINRA brokerage firm stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in two Virginia cities: Richmond, Virginia and Norfolk, Virginia. Northern Virginia residents may also request a hearing in Washington, D.C.
The Virginia State Corporation Commission, Division of Securities, in Richmond, Virginia, regulates the sales of securities in the state of Virginia. Its website provides information on state securities Statutes and Rules, and information on how to file a complaint.
Virginia's 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 attorney"s fees, and interest.
Common Legal Claims by investors against their financial advisors in Virginia are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Civil Liability section of the Virginia Securities Act is as follows:
Va. Code 13.1-522. Civil liabilities.
A. Any person who: (i) sells a security in violation of 13.1-502, 13.1-504 A, 13.1-507 (i) or (ii), 13.1-510 (e) or (f), or (ii) sells a security by means of an 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 were made, not misleading (the purchaser not knowing of such untruth or omission), and who shall not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of such untruth or omission, shall be liable to the person purchasing such security from him who may sue either at law or in equity to recover the consideration paid for such security, together with interest thereon at the annual rate of six percent, costs, and reasonable attorneys' fees, less the amount of any income received on the security, upon the tender of such security, or for the substantial equivalent in damages if he no longer owns the security.
B. Any person who (i) engages in the business of advising others, for compensation, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities in willful and material violation of 13.1-503, subsection A of 13.1-504, or of any rule or order under 13.1-505.1, or (ii) receives, directly or indirectly, any consideration from another person for advice as to the value of securities or their purchase or sale, whether through the issuance of analyses, reports or otherwise and employs any device, scheme, or artifice to defraud such other person or engages in any act, practice or course of business which operates or would operate as a fraud or deceit on such other person, shall be liable to that person who may sue either at law or in equity to recover the consideration paid for such advice and any loss due to such advice, together with interest thereon at the annual rate of six percent from the date of payment of the consideration plus costs and reasonable attorney's fees, less the amount of any income received from such advice and any other economic advantage.
C. Every person who directly or indirectly controls a person liable under subsection A or B of this section, including every partner, officer, or director of such a person, every person occupying a similar status or performing similar functions, every employee of such a person who materially aids in the conduct giving rise to the liability, and every broker-dealer, investment advisor, investment advisor representative or agent who materially aids in such conduct shall be liable jointly and severally with and to the same extent as such person, unless able to sustain the burden of proof that he did not know, and in the 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 shall be contribution as in cases of contract among the several persons so liable.
D. No suit shall be maintained to enforce any liability created under this section unless brought within two years after the transaction upon which it is based; provided, that, if any person liable by reason of subsection A, B or C of this section makes a written offer, before suit is brought, to refund the consideration paid and any loss due to any investment advice provided by such person, together with interest thereon at the annual rate of six percent, less the amount of any income received on the security or resulting from such advice, or to pay damages if the purchaser no longer owns the security, no purchaser or user of the investment advisory service shall maintain a suit under this section who has refused or failed to accept such offer within thirty days of its receipt.
E. Any tender specified in this section may be made at any time before entry of judgment.
F. Any condition, stipulation or provision binding any person acquiring any security or receiving any investment advice to waive compliance with any provision of this chapter or of any rule or order thereunder shall be void.
G. The rights and remedies provided by this chapter shall be in addition to any and all other rights and remedies that may exist at law or in equity.
FINRA securities brokerage firms with their main offices in Virginia:
AGECROFT PARTNERS, LLC
103 CANTERBURY ROAD, RICHMOND, VA 23221-3211
ALL FUNDS, INC.
1444 ORANGE TURNPIKE, MONROE, NY 10950-3716
Mailing Address: PO DRAWER H, VALLEY COTTAGE, NY 10989
ALLIED BEACON PARTNERS, INC.
7501 BOULDERS VIEW DR, SUITE 601, RICHMOND, VA 23225
ALPHA OMEGA CAPITAL SECURITIES, LLC
7400 BEAUFONT SPRINGS DR., SUITE 105, RICHMOND, VA 23225
ANDERSON & STRUDWICK, INCORPORATED
707 E. MAIN STREET 20TH FLOOR, RICHMOND, VA 23219
Mailing Address: P.O. BOX 1459, RICHMOND, VA 23218-1459
BGB SECURITIES, INC.
1100 NORTH GLEBE RD-STE 1040, ARLINGTON, VA 22201-4798
BIA CAPITAL STRATEGIES, LLC
15120 ENTERPRISE COURT, SUITE 100, CHANTILLY, VA 20151
Mailing Address: 15120 ENTERPRISE COURT, SUITE 100, CHANTILLY, VA 20151
BLUESTONE CAPITAL PARTNERS, LLC
1650 TYSONS BOULEVARD, SUITE 1530, MCLEAN, VA 22102
BUTLER CAPITAL INVESTMENTS, LLC
222 COURT SQUARE, CHARLOTTESVILLE, VA 22902
CAPITAL BROKERAGE CORPORATION
6620 WEST BROAD STREET, BUILDING 2, RICHMOND, VA 23230
CAPITOL SECURITIES & ASSOCIATES, INC.
100 CONCOURSE BLVD., SUITE 101, GLEN ALLEN, VA 23059
CAPITOL SECURITIES MANAGEMENT, INC.
100 CONCOURSE BLVD, SUITE 101, GLEN ALLEN, VA 23059
CARY STREET PARTNERS LLC
1210 EAST CARY STREET, SUITE 300, RICHMOND, VA 23219
CHEVAL CAPITAL, INC.
901 N. PITT STREET-110, ALEXANDRIA, VA 22314
CLEARVIEW CORRESPONDENT SERVICES, LLC
8006 DISCOVERY DRIVE, SUITE 200, RICHMOND, VA 23229
CORTVIEW CAPITAL SECURITIES LLC
1021 EAST CARY ST, 11TH FLOOR, RICHMOND, VA 23219
DAVENPORT & COMPANY LLC
ONE JAMES CENTER, 901 E. CARY STREET, RICHMOND, VA 23219
Mailing Address: P.O. BOX 85678, RICHMOND, VA 23285-5678
DMG SECURITIES, INC.
GREAT FALLS PROFESSIONAL CENTER 737 WALKER ROAD, SUITE3, GREAT FALLS, VA 22066
Mailing Address: GREAT FALLS PROFESSIONAL CENTER 737 WALKER ROAD, SUITE 3, GREAT FALLS, VA 22066
DOMINION PARTNERS, L.C.
4801COX ROAD, STE 104, GLEN ALLEN, VA 23060
EWING BEMISS & CO.
901 EAST BYRD STREET SUITE 1500, RICHMOND, VA 23219-4033
FBR CAPITAL MARKETS & CO.
1001 19TH STREET NORTH, ARLINGTON, VA 22209
FBR INVESTMENT SERVICES, INC.
1001 NINETEENTH STREET NORTH, ARLINGTON, VA 22209
FINANCIAL SECURITY MANAGEMENT, INCORPORATED
575 LYNNHAVEN PARKWAY, SUITE 310, VIRGINIA BEACH, VA 23452
FIRST DOMINION CAPITAL CORP.
8730 STONY POINT PARKWAY, BUILDING III, SUITE 205, RICHMOND, VA 23235
Mailing Address: 8730 STONY POINT PARKWAY, SUITE 205, RICHMOND, VA 23235
FIRST GEORGETOWN SECURITIES, INC.
1700 DIAGONAL RD., # 200, ALEXANDRIA, VA 22314
FOLIOFN INVESTMENTS, INC.
8180 GREENSBORO DR, 8TH FLOOR, MCLEAN, VA 22102
GIT INVESTMENT SERVICES, INC.
1700 NORTH MOORE STREET, SUITE M1E, ARLINGTON, VA 22209-1903
GOULD CAPITAL, LLC
5245 CATTERTON ROAD, FREE UNION, VA 22940
GUIDANCE SECURITIES, LLC
11107 SUNSET HILLS ROAD, SECOND FL, RESTON, VA 20190
Mailing Address: 11107 SUNSET HILLS ROAD, RESTON, VA 20190
GUIDANCE SECURITIES, LLC
11107 SUNSET HILLS ROAD, SECOND FL, RESTON, VA 20190
Mailing Address: 11107 SUNSET HILLS ROAD, RESTON, VA 20190
HAMPTON HEDGE FUND MARKETING, LLC
2605 GENEVA HILL COURT, OAKTON, VA 22124
HARRIS WILLIAMS & CO.
1001 HAXALL POINT, 9TH FLOOR, RICHMOND, VA 23219
INVESTORS SECURITY COMPANY, INC.
127 E. WASHINGTON STREET, SUITE 101, SUFFOLK, VA 23434
JAMES RIVER SECURITIES CORP.
58 BROAD STREET ROAD, MANAKIN-SABOT, VA 23103-2213
KINGSBRIDGE CAPITAL CORP.
12407 RIDGE RD, KING GEORGE, VA 22485
KIPPSDESANTO & COMPANY
1600 TYSONS BOULEVARD, SUITE 375, MCLEAN, VA 22102
LARA, SHULL & MAY, LLC
7600 LEESBURG PIKE, SUITE 120 EAST, FALLS CHURCH, VA 22043
MANNA CAPITAL MANAGEMENT
6521 ARLINGTON BLVD., SUITE 502, FALLS CHURCH, VA 22042
MARRIOTT SECURITIES, LLC
THREE JAMES CENTER, 1051 EAST CARY STREET, SUITE 1430, RICHMOND, VA 23219
MARTIN VENTURES LLC
351 RIVER BEND RD, GREAT FALLS, VA 22066
MASON SECURITIES, INC.
11130 SUNRISE VALLEY DRIVE, SUITE 200, RESTON, VA 20191-5321
MATRIX PRIVATE EQUITIES, INC.
11 SOUTH 12TH STREET, 3RD FLOOR, RICHMOND, VA 23219
MAYMONT PARTNERS, INC.
1801 LIBBIE AVE, SUITE 104, RICHMOND, VA 23226
MCKINNON & COMPANY, INC.
999 WATERSIDE DRIVE, SUITE 1200, NORFOLK, VA 23510
Mailing Address: 999 WATERSIDE DRIVE, SUITE 1200, NORFOLK, VA 23510
MCLAUGHLIN RYDER INVESTMENTS, INC.
1421 PRINCE STREET, SUITE 400, ALEXANDRIA, VA 22314
MCLEAN SECURITIES, LLC
7900 WESTPARK DRIVE, SUITE A320, MCLEAN, VA 22102
MEDALIST SECURITIES INC.
100 SHOCKOE SLIP, 2ND FL, RICHMOND, VA 23219
MONETA SECURITIES CORPORATION
15413 CHAMPIONSHIP DRIVE, HAYMARKET, VA 20169
Mailing Address: PO BOX 909, HAYMARKET, VA 20168
MUTUAL FUNDS INVESTMENT COMPANY
16176 POINT BEVERLY COURT, MONTPELIER, VA 23192
Mailing Address: PO BOX 364, MONTPELIER, VA 23192
NAVY FEDERAL BROKERAGE SERVICES, LLC
1007 ELECTRIC AVENUE, VIENNA, VA 22180
NORTHWEST FINANCIAL GROUP
200 SPRING STREET, SUITE 120, HERNDON, VA 20170
PACE FINANCIAL SERVICES, LLC
4401 FAIR LAKES COURT, FAIRFAX, VA 22033-3848
Mailing Address: 4401 FAIR LAKES COURT, FAIFAX, VA 22033-3848
PARCHMAN, VAUGHAN & COMPANY, L.L.C.
1040 PARK AVENUE, SUITE 120, BALTIMORE, MD 21201
POTOMAC SECURITIES, LLC
44081 PIPELINE PLAZA, #320, ASHBURN, VA 20147
PRESIDIO SECURITIES, INC.
3 RIVER PLACE, LEXINGTON, VA 24450
RE INVESTMENT CORPORATION
4301 WILSON BOULEVARD, ARLINGTON, VA 22203
ROBINSON & LUKENS, INC.
1319 VINCENT PL, MCLEAN, VA 22101
Mailing Address: P.O. BOX 956, MCLEAN, VA 22101-0956
SAUNDERS RETIREMENT ADVISORS, INC.
7400 BEAUFONT SPRINGS DR SUITE 300, RICHMOND, VA 23225
Mailing Address: 7400 BEAUFONT SPRINGS DRIVE, SUITE 300, RICHMOND, VA 23225
SCOTT & STRINGFELLOW, LLC
901 E. BYRD STREET, RIVERFRONT PLAZA, WEST TOWER, RICHMOND, VA 23219-3310
Mailing Address: P.O. BOX 1575, RICHMOND, VA 23213
SCOTT JAMES GROUP, INC.
6700 ARLINGTON BOULEVARD, FALLS CHURCH, VA 22042
SEALE CAPITAL, INC.
950 N. GLEBE ROAD, SUITE 950, ARLINGTON, VA 22203
SMITHER & COMPANY CAPITAL MARKETS, LLC
4337 COX ROAD, GLEN ALLEN, VA 23060
SPIRE SECURITIES, LLC
12355 SUNRISE VALLEY DRIVE, SUITE 305, RESTON, VA 20191
STERLING BENEFITS BROKERAGE, LLC
4356 BONNEY ROAD, BUILDING 2, SUITE 101, VIRGINIA BEACH, VA 23452
STONECROFT SECURITIES LLC
23253 MEADOWVALE GLEN CT., DULLES, VA 20166
TBC SECURITIES, LLC
2690 CLARENDON BLVD., SUITE 200, ARLINGTON, VA 22201
THOMPSON DAVIS & CO., INC.
15 SOUTH 5TH STREET, RICHMOND, VA 23219
Mailing Address: PO BOX 1854, RICHMOND, VA 23218
TIER ONE PARTNERS, INC.
2500 LANDER CT, MIDLOTHIAN, VA 23113
TRANS AMERICAN EQUITIES CORPORATION
4141 N. HENDERSON RD STE 8, ARLINGTON, VA 22203
U.S. INVESTORS, INC.
515 KING STREET, SUITE 310, ALEXANDRIA, VA 22314
WEALTHFORGE, LLC
501 EAST FRANKLIN STREET, SUITE 118, RICHMOND, VA 23219
WOODVILLE HALL CAPITAL, LLC
SUITE 201, 2 WEST WASHINGTON STREET, MIDDLEBURG, VA 20117
Mailing Address: PO BOX 113, MIDDLEBURG, VA 20118
WWC SECURITIES, LLC
11911 FREEDOM DRIVE STE 1010, RESTON, VA 20190
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent residents from across the country, including California, in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of California, including Los Angeles, San Francisco, San Diego, San Jose, Fresno, Sacramento, Long Beach, Oakland, Bakersfield, Anaheim, Santa Ana, Riverside, Stockton, Irvine, Chula Vista, Fremont, San Bernardino, and Modesto.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in three California cities, San Francisco, Los Angeles, and San Diego.
The California Broker-Dealer and Investment Adviser Division (BDIA) is a division of the California Corporations Commissioner which regulates broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives in California pursuant to the Corporate Securities Law of 1968. Its website (https://dbo.ca.gov/broker-dealers-state-investment-advisers-and-sec-investment-advisers/) provides information on state securities Statutes and Rules, and information on how to file a complaint.
California’s 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) and interest.
Common Legal Claims by investors against their financial advisors are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. NASD Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent Maryland residents in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case. We serve clients from all areas of Maryland, including Baltimore, Columbia, Germantown, Silver Spring, Waldorf, Ellicott City, Frederick, Rockville, Gathersburg, Bethesda, Hagerstown, Annapolis, Cumberland, Montgomery County, and Prince George's County.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA's Dispute Resolution system. FINRA Arbitration holds arbitration hearings in one Maryland city: Baltimore, Maryland. D.C. Metro area Maryland residents may also request a hearing in Washington, D.C.
The Maryland Attorney General, Securities Division, in Baltimore, Maryland, regulates the sales of securities in the state of Maryland. Its website provides information on state securities Statutes and Rules, and information on how to file a complaint.
Maryland's 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 attorney's fees, and interest.
Common Legal Claims by investors against their financial advisors in Maryland are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Civil Liability section of the Maryland Securities Act is as follows:
Md. Corporations and Associations Code Ǡ11-703. Civil liabilities
(a) When seller, purchaser or advisor liable. --
(1) A person is civilly liable to the person buying a security from him if he:
(i) Offers or sells the security in violation of Ǡ11-304(b), Ǡ11-401(a), Ǡ11-402(a), or Ǡ11-501 of this title, or of any rule or order under Ǡ11-205 of this title which requires the affirmative approval of sales literature before it is used; or
(ii) Offers or sells the 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 statements made, in the light of the circumstances under which they are made, not misleading, the buyer not knowing of the untruth or omission, and if he does not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.
(2) A person is civilly liable to the person selling a security to him if he offers to purchase or purchases the 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 statements made, in light of the circumstances under which they are made, not misleading, the seller not knowing of the untruth or omission, and if he does not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.
(3) A person is civilly liable to another person if the person:
(i) Acts as an investment adviser or representative in violation of Ǡ11-302(c), Ǡ11-401(b), Ǡ11-402(b), or Ǎ 11-304(b) of this title or any rule or order promulgated under it, except that an action based on a violation of Ǡ11-402(b) of this title may not be maintained except by those persons who directly received advice from the unregistered investment adviser representative; or
(ii) Receives, directly or indirectly, any consideration from another person for advice as to the value of securities or their purchase or sale or for acting as an investment adviser or representative under Ǡ11-101(h) and (i) of this title, whether through the issuance of analyses, reports, or otherwise, and employs any device, scheme, or artifice to defraud such other person or engages in any act, practice or course of business which operates or would operate as a fraud or deceit on such other person.
(b) Extent of liability. --
(1) A buyer may sue either at law or in equity:
(i) On tender of the security, to recover the consideration paid for the security, together with interest at the rate provided for in Ǡ11-107(a) of the Courts and Judicial Proceedings Article, as amended, from the date of payment, costs, and reasonable attorneys' fees, less the amount of any income received on the security; or
(ii) If he no longer owns the security, for damages.
(2) A seller may sue either at law or in equity:
(i) On tender of the consideration paid for the security, to recover the security, together with the amount of any income received on the security, costs, and reasonable attorneys' fees; or
(ii) If the buyer no longer owns the security, for damages.
(3) For the purposes of subsection (b)(1)(ii) of this section, damages are the amount that would be recoverable on a tender less the value of the security when the buyer disposed of it and interest at the rate provided for in Ǡ11-107(a) of the Courts and Judicial Proceedings Article, as amended, from the date of disposition.
(4) (i) In any action brought under subsection (a)(3) of this section a person may sue either at law or in equity for the rescission of the advisory contract and any damages resulting from the violation, together with interest at the rate provided for in Ǡ11-107(a) of the Courts and Judicial Proceedings Article, as amended, from the date of payment of the consideration, costs, and reasonable attorneys' fees, less the amount of any income received from such advice.
(ii) An action based on a violation of Ǡ11-302(c) of this title may not prevail where the person accused of the violation sustains the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the existence of the facts by reason of which the liability is alleged to exist.
(c) Others jointly and severally liable with seller or purchaser. --
(1) Every person who directly or indirectly controls a person liable under subsection (a) of this section, every partner, officer, or director of the person liable, every person occupying a similar status or performing similar functions, every employee of the person liable who materially aids in the conduct giving rise to the liability, and every broker-dealer or agent who materially aids in such conduct are also liable jointly and severally with and to the same extent as the person liable, unless able to sustain the burden of proof that he 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.
(2) There is contribution as in cases of contract among the several persons so liable.
(d) Time of making tender. -- Any tender specified in this section may be made at any time before entry of judgment.
(e) Survival of cause of action. -- Every cause of action under this statute survives the death of any person who might have been a plaintiff or defendant.
(f) Limitation of actions; effect of offer of refund. --
(1) A person may not sue under subsections (a)(1) and (2) of this section after the earlier to occur of 3 years after the contract of sale or purchase or the time specified in paragraph (2) of this subsection.
(2) An action may not be maintained:
(i) To enforce any liability created under subsection (a)(1)(i) of this section, unless brought within one year after the violation on which it is based; or
(ii) To enforce any liability created under subsection (a)(1)(ii) or (2) of this section, unless brought within one year after the discovery of the untrue statement or omission, or after the discovery should have been made by the exercise of reasonable diligence.
(3) A person may not sue under subsection (a)(3) of this section more than 3 years after the date of the advisory contract or the rendering of investment advice, or the expiration of 2 years after the discovery of the facts constituting the violation, whichever first occurs.
(4) A person may not sue under this section:
(i) If the buyer received a written offer, before suit and at a time when he owned the security or asset, to refund the consideration paid together with interest at the rate provided for in Ǡ11-107(a) of the Courts and Judicial Proceedings Article, as amended, from the date of payment, less the amount of any income received on the security or asset, and he failed to accept the offer within 30 days of its receipt;
(ii) If the buyer received the offer before suit and at a time when he did not own the security or asset, unless he rejected the offer in writing within 30 days of its receipt; or
(iii) If the seller received a written offer from the buyer, before suit, to return the security or asset, together with the amount of any income received on the security, less interest at the rate provided for in Ǡ11-107(a) of the Courts and Judicial Proceedings Article, as amended, from the date of payment, and he failed to accept the offer within 30 days of its receipt.
(g) Effect of making or performing contract with knowledge of facts. -- A person may not base any suit on any contract if he:
(1) Has made or engaged in the performance of the contract in violation of any provision of this title or any rule or order under this title; or
(2) Has acquired any purported right under the contract with knowledge of the facts by reason of which its making or performance was in violation.
(h) Provision for waiver of compliance with section void. -- Any condition, stipulation, or provision binding any person acquiring any security or asset or receiving any investment advice to waive compliance with any provision of this title or any rule or order under this title is void.
(i) Rights and remedies additional to others. -- The rights and remedies provided by this title are in addition to any other rights or remedies that may exist at law or in equity, but this title does not create any cause of action not specified in this section or Ǡ11-410 of this title.
FINRA securities brokerage firms with their main offices in Maryland:
ARONSON CAPITAL ADVISORS, LLC
805 KING FARM BOULEVARD, SUITE 300, ROCKVILLE, MD 20850
ATLANTIC SECURITIES, INC.
920 PROVIDENCE RD., SUITE 201, TOWSON, MD 21286-2988
BELLAMAH, NEUHAUSER & BARRETT, INC.
8730 GEORGIA AVENUE, SUITE 500, SILVER SPRING, MD 20910-3648
BENGUR BRYAN & CO., INC.
509 SOUTH EXETER STREET, SUITE 210, BALTIMORE, MD 21202
BLUE SAND SECURITIES LLC
610 PROFESSIONAL DR., STE 275, GAITHERSBURG, MD 20879
BROADOAK PARTNERS, LLC
7201 WISCONSIN AVENUE, SUITE 630, BETHESDA, MD 20814
BROWN ADVISORY SECURITIES, LLC
901 SOUTH BOND STREET, SUITE 400, BALTIMORE, MD 21231-3340
Mailing Address: 901 SOUTH BOND STREET, SUITE 400, BALTIMORE, MD 21231
C. G. MENK & ASSOCIATES, INC.
7502 CONNELLEY DRIVE, SUITE 104, HANOVER, MD 21076
CALVERT INVESTMENT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE - SUITE 1000N, BETHESDA, MD 20814
CAMPBELL FINANCIAL SERVICES, INC.
2850 QUARRY LAKE DRIVE, BALTIMORE, MD 21209
CAPITAL PORTFOLIO MANAGEMENT, INC.
2205 YORK ROAD, SUITE 203, TIMONIUM, MD 21093
CEROS FINANCIAL SERVICES, INC.
1445 RESEARCH BOULEVARD, SUITE 530, ROCKVILLE, MD 20850
CFG CAPITAL MARKETS, LLC
1422 CLARKVIEW ROAD, 5TH FLOOR, BALTIMORE, MD 21209
CHAPIN, DAVIS
2 VILLAGE SQUARE, SUITE 200, BALTIMORE, MD 21210
CHESSIECAP SECURITIES, INC.
7911 SHERWOOD AVENUE, TOWSON, MD 21204
Mailing Address: 3 BETHESDA METRO CENTER, SUITE 700, BETHESDA, MD 20814
EAGLE EQUITIES, INC.
400 CRAIN HIGHWAY S.W., GLEN BURNIE, MD 21061-3645
Mailing Address: 400 CRAIN HWY S.W., GLEN BURNIE, MD 21061
ENTERPRISE EQUITIES, INC.
10227 WINCOPIN CIRCLE, SUITE 800, COLUMBIA, MD 21044
FELLS POINT RESEARCH LLC
600 WYNDHURST AVENUE, SUITE 300, BALTIMORE, MD 21210
FIFTH THIRD SECURITIES, INC.
34 FOUNTAIN SQUARE PLAZA, MD 10AT5G, CINCINNATI, OH 45202
Mailing Address: 38 FOUNTAIN SQUARE PLAZA, MD 10AT5G, CINCINNATI, OH 45263
FIRST INTERNET SECURITIES NETWORK
4800 MONTGOMERY LANE, BETHESDA, MD 20814
FORTIGENT SECURITIES COMPANY, LLC.
2600 TOWER OAKS BLVD, SUITE 300, ROCKVILLE, MD 20852-3103
FOUNDERS FINANCIAL SECURITIES LLC
1020 CROMWELL BRIDGE ROAD, TOWSON, MD 21286
FRS SECURITIES, LLC
1110 BONIFANT STREET, SUITE 301, SILVER SPRING, MD 20910
GLOBAL BROKERAGE SERVICES, INC.
11350 MCCORMICK RD., EP III SUITE 901, HUNT VALLEY, MD 21031
H. BECK, INC.
11140 ROCKVILLE PIKE, SUITE 400, ROCKVILLE, MD 20852
Mailing Address: 11140 ROCKVILLE PIKE-400, ROCKVILLE, MD 20852
HANNON ARMSTRONG SECURITIES, LLC
1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 520, ANNAPOLIS, MD 21401
HARBOR INVESTMENT ADVISORY, LLC
100 LIGHT STREET, SUITE 1300, BALTIMORE, MD 21202
HIGHBANK SECURITIES LLC
1 SOUTH STREET, SUITE 860, BALTIMORE, MD 21202
HOLLOWAY & ASSOCIATES, INC.
ONE MILL PLACE, STE 101, EASTON, MD 21601
Mailing Address: P.O. BOX 1559, EASTON, MD 21601
INNOVA SECURITIES, INC.
3703 WOODSMAN COURT, SUITLAND, MD 20746-1376
INTERNATIONAL MONEY MANAGEMENT GROUP, INC.
110 CHANNEL MARKER WAY SUITE #101, GRASONVILLE, MD 21638
INVESTORS PROPERTIES, INC.
3724 THOMAS POINT RD., ANNAPOLIS, MD 21403
Mailing Address: PO BOX 4220, ANNAPOLIS, MD 21403
JACQUES FINANCIAL, LLC
15430 AVERY ROAD, ROCKVILLE, MD 20855
JSI TRANSACTION ADVISORS, LLC
7852 WALKER DRIVE, STE. 200, GREENBELT, MD 20770
KOONCE SECURITIES, INC.
6550 ROCK SPRING DR. STE 600, BETHESDA, MD 20817-6550
LAFAYETTE INVESTMENTS, INC.
7910 WOODMONT AVE, SUITE 905, BETHESDA, MD 20814
LEGG MASON INVESTOR SERVICES, LLC
100 INTERNATIONAL DRIVE, BALTIMORE, MD 21202
LOMBARD SECURITIES INCORPORATED
1820 LANCASTER STREET, SECOND FLOOR, BALTIMORE, MD 21231
Mailing Address: 1820 LANCASTER STREET, BALTIMORE, MD 21231
MAP SECURITIES, INC.
1682 E. GUDE DRIVE - SUITE 201, ROCKVILLE, MD 20850
MORGAN STANLEY & CO. LLC
1585 BROADWAY, NEW YORK, NY 10036-8293
Mailing Address: 1300 THAMES STREET WHARF, 6TH FLOOR, C/O NORTH AMERICAN REGISTRATION, BALTIMORE, MD 21231
MORGAN STANLEY SMITH BARNEY
2000 WESTCHESTER AVENUE, PURCHASE, NY 10577-2530
Mailing Address: 1300 THAMES STREET, 6TH FLOOR, BALTIMORE, MD 21231
MS SECURITIES SERVICES INC.
1585 BROADWAY, NEW YORK, NY 10036-8293
Mailing Address: NORTH AMERICAN REGISTRATION, 1300 THAMES STREET, 6TH FLOOR, BALTIMORE, MD 21231
NC SECURITIES, LLC
3 BETHESDA METRO CENTER, SUITE 500, BETHESDA, MD 20814
OFFUTT SECURITIES, INC.
3515 BUTLER ROAD, GLYNDON, MD 21071
Mailing Address: P.O. BOX 559, COCKEYSVILLE, MD 21030
PARCHMAN, VAUGHAN & COMPANY, L.L.C.
1040 PARK AVENUE, SUITE 120, BALTIMORE, MD 21201
PERCIVAL FINANCIAL PARTNERS, LTD.
2 VILLAGE SQ., SUITE 252, BALTIMORE, MD 21210
POTOMAC CAPITAL MARKETS, LLC
5 SOUTH MARKET STREET, 4TH FLOOR, FREDERICK, MD 21701
POTOMAC INVESTMENT COMPANY
5600 WISCONSIN AVE #108, CHEVY CHASE, MD 20815
PRIME DEALER SERVICES CORP.
1221 AVENUE OF THE AMERICAS, NEW YORK, NY 10020
Mailing Address: NORTH AMERICAN REGISTRATION, 1300 THAMES STREET, 6TH FLOOR, BALTIMORE, MD 21231
PROFUNDS DISTRIBUTORS, INC.
7501 WISCONSIN AVE., SUITE 1000, BETHESDA, MD 20814
Mailing Address: 7501 WISCONSIN AVE., SUITE 1000, EAST TOWER, BETHESDA, MD 20814
PSA EQUITIES, INC.
11311 MCCORMICK ROAD, HUNT VALLEY, MD 21031-8622
RYDEX DISTRIBUTORS, LLC
805 KING FARM BLVD. STE 600, ROCKVILLE, MD 20850
SHELYN SECURITIES CORP
12250 ROCKVILLE PIKE, STE. 200, ROCKVILLE, MD 20852
SIGNAL HILL CAPITAL GROUP LLC
300 E. LOMBARD STREET, SUITE 1700, BALTIMORE, MD 21202-3243
STEBEN & COMPANY, INC.
2099 GAITHER ROAD, STE. 200, ROCKVILLE, MD 20850
Mailing Address: 2099 GAITHER ROAD, STE. 200, ROCKVILLE, MD 20850
STOUT CAUSEY CAPITAL CORPORATION
910 RIDGEBROOK ROAD, SPARKS, MD 21152
T. ROWE PRICE INVESTMENT SERVICES, INC.
100 E PRATT ST, BALTIMORE, MD 21202
TLS FINANCIAL SERVICES, INC.
920 PROVIDENCE RD, SUITE 203, TOWSON, MD 21286-2977
WASHINGTON SECURITIES CORPORATION
6935 WISCONSIN AVE NO. 510, CHEVY CHASE, MD 20815-6113
The Securities Fraud Lawyers at Greco & Greco, P.C. regularly represent Washington, D.C., Virginia, and Maryland residents in disputes with their financial advisors and securities salespersons, involving claims of suitability, violations of FINRA Rules, negligence, fraud, misrepresentation, ponzi schemes, breach of fiduciary duty, professional malpractice, and other claims. Please contact Scott Greco for a free attorney consultation about your case.
If an individual investor has a dispute with a FINRA brokerage firm or stock broker, he/she most likely will have to arbitrate through FINRA''s Dispute Resolution system. FINRA Arbitration holds arbitration hearings in Washington, D.C. for DC residents, and residents of Maryland and Virginia who request a Washington D.C. forum.
The Washington, DC Office of Insurance, Securities, and Banking regulates the sales of securities in Washington, DC. Its website provides information on securities Statutes and Rules, and information on how to file a complaint.
Washington, DC's 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 attorney''s fees, and interest.
Common Legal Claims by investors against their financial advisors in Washington DC are:
A. Suitability. Prior to recommending the purchase of specific investments or a specific investment strategy to a customer, a stock broker is required to determine that the investments are suitable to that particular investor. A suitability determination is based upon many different factors such as age, investment objectives, risk tolerance, employment situation, needs, income, assets, and investment experience. If an advisor’s recommendations of unsuitable investments result in the investor incurring significant losses, that investor may have a suitability claim against the broker and his/her firm.
B. Churning. Churning occurs when a broker exercises control over an account and allows the broker's interest in making commissions to override the investor's interests in the account. When a broker makes a buy or sell recommendation for an account, that broker should have the investor's best interests based on their investment objectives in mind. If the broker makes excessive buy and sell recommendations for the purposes of generating commissions for the broker by each buy and sell, that broker is engaged in churning the account. Excessive turnover in the assets of the account and/or a high cost to equity percentage are often a sign of churning.
C. Unauthorized Trading. Generally, an investor can have two kinds of an account, non-discretionary and discretionary. In a typical non-discretionary account, the broker must consult with and obtain the consent of the customer prior to making a trade in the account. Unauthorized trading occurs when a broker makes trades in a non-discretionary account without the consent of the customer.
D. Securities Fraud. Most of the claims in this list are subsets of securities fraud which is employing a device, scheme, or artifice to defraud, or obtaining money by means of untrue statements of material facts and failure to state material facts in violation of state blue sky / securities laws or federal law (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5). If a broker makes false statements to an investor or fails to advise the investor of certain important facts, the investor may be able to recover losses incurred resulting from this fraud.
E. Margin Disputes. Margin trading involves borrowing money from the brokerage firm to purchase securities greater in value than the equity in an investor's account. Due to the risky nature of trading on the margin, disputes with brokers often arise as a result of significant losses. If a broker trades on the margin without the knowledge or consent of the investor, the investor may be able to recover the losses resulting from the fraud.
F. Ponzi Scheme Investment Scams. Ponzi schemes generally involve promises of high returns by salespersons over short periods of time, but in reality result in stealing from Peter to pay Paul. Because returns to investors in ponzi schemes are often paid out of new investment monies from new investors, the scheme will ultimately fall apart when the new investors dry up, leaving all investors often holding a worthless investment. Financial Advisors and their brokerage firms who sell ponzi scheme fraudulent investments may be found liable for selling unsuitable investments, securities fraud, sale of unregistered securities, failure to supervise, and other legal violations.
G. Failure to Supervise Broker. FINRA firms have a duty to supervise their registered brokers, and their failure to do so may form the basis of various legal claims against them. FINRA Rule 3110 states: Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules. Final responsibility for proper supervision shall rest with the member.
Examples of legal grounds for liability of Broker-Dealers in these situations include:
a) under tort and agency law, principals can be found liable for the acts of their agents even if they are entirely innocent and have received no benefit from the transaction;
b) a broker's Broker-Dealer can also be found liable as a control person of that broker under state and federal securities laws; and
c) claims can be pursued in arbitration based on violations of FINRA rules including Rules related to supervision, suitability, and outside business activities.
Obviously, this list is by no means comprehensive and all of the legal requirements of the above claims stated are not completely set out. This web site is not intended to give legal advice or create an attorney-client relationship. Please contact our securities lawyers for a free consultation if you believe your financial advisor broker may be liable under one of the above claims, or for other wrongful conduct.
The Civil Liability section of the Washington, DC Securities Act is as follows:
§ 31-5606.05. Civil liability
(a)(1) A person shall be civilly liable to another person who buys a security if the person:
(A) Offers or sells a security in violation of § 31-5602.01, § 31- 5603.01, or § 31-5605.05, of a rule or order under § 31-5604.05 which requires the affirmative approval of sales literature, or of a condition imposed under § 31-5603.05(g) or (h); or
(B) Offers or sells a security by means of an untrue statement of a material fact or an omission to state a material fact necessary in order to make the statement made, in the light of the circumstances under which made, not misleading, the buyer does not know of the untruth or omission and the offeror or seller does not sustain the burden of proof that the offeror or seller did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.
(2) A person shall be civilly liable to another person who sells a security if the person offers to purchase or purchases the 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 it is made, not misleading, the seller does not know of the untruth or omission, and the purchaser does not sustain the burden of proof that the purchaser did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.
(3) A person shall be civilly liable to another person if the person:
(A) Acts as an investment adviser or representative in violation of §§ 31- 5602.02, 31-5605.02, 31-5605.05(b), or of any rule or order adopted under § 31-5604.05; or
(B)(i) Receives directly or indirectly any consideration from the other person for advice as to the value of securities or their purchase or sale or for acting as an investment adviser or representative under § 31-5601.01(17) or (18), whether through the issuance of analyses, reports or otherwise, and
(ii) Employs an device, scheme, or artifice to defraud the other person or engages in an act, practice, or course of business which operates or would operate as a fraud or deceit on the other person.
(b)(1) In an action brought under subsection (a)(1) of this section, a buyer may sue at law or in equity:
(A) To recover the consideration paid for the security, interest at the rate used in the Superior Court of the District of Columbia 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 and any income received on it; or
(B) For damages if the buyer no longer owns the security. The amount of damages shall be the amount that would be recoverable on a tender less the value of the security when the buyer disposed of it, plus interest at the rate used in the Superior Court of the District of Columbia from the date of disposition.
(2) In an action under subsection (a)(2) of this section, a seller may sue at law or in equity:
(A) On tender of the consideration paid for the security, to recover the security, the amount of any income received on the security, costs, and reasonable attorneys' fees; or
(B) For damages if the buyer no longer owns the security.
(3) In an action brought under subsection (a)(3) of this section, a person may sue at law or in equity for the rescission of the advisory contract and any damages resulting from the violation, interest at the rate used in the Superior Court of the District of Columbia from the date of payment of the consideration plus costs and reasonable attorney's fees, less the amount of any income received from such advice.
(c) A person who directly or indirectly controls a person liable under subsection (a) of this section; a partner, officer, or director of the person liable; a person occupying a similar status or performing similar functions; an employee of the person liable who materially aids in the conduct giving rise to the liability; and a broker-dealer or agent who materially aids in the conduct shall be liable jointly and severally with, and to the same extent as the person liable, unless her or she is able to sustain the burden of proof that he or she 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 shall be contribution among the several persons so liable.
(d) A tender specified in this section may be made at any time before entry of judgment.
(e) A cause of action under this chapter shall survive the death of any person who might have been a plaintiff or defendant.
(f)(1) A person may not sue under subsection (a)(1) and (2) of this section after the earlier of 3 years after the contract of sale or purchase, or the time specified in paragraph (2) of this subsection.
(2) An action may not be maintained:
(A) To enforce any liability under subsection (a)(1)(A) of this section unless brought within one year after the violation on which it is based; or
(B) To enforce a liability under subsections (a)(1)(B) or (a)(2) of this section unless brought within one year after the discovery of the untrue statement or omission or after the discovery should have been made by the exercise of reasonable diligence.
(3) A person may not sue under subsection (a)(3) of this section after the earlier of 3 years after the date of the advisory contract or the rendering of investment advice, or the expiration of 2 years after the discovery of the facts constituting the violation.
(g) No person may sue under this section if:
(1) The buyer received a written offer, before suit and at a time when the buyer owned the security or asset, to refund the consideration paid, and interest at the rate used in the Superior Court of the District of Columbia from the date of payment, less the amount of any income received on the security or asset, and the buyer failed to accept the offer within 30 days of its receipt;
(2) The buyer received such an offer before suit and at a time when the buyer did not own the security or asset, unless the buyer rejected the offer in writing within 30 days of its receipt; or
(3) The seller received a written offer from the buyer, before suit, to return the security or asset, together with the amount of any income received on the security, and interest at the rate used by the Superior Court of the District of Columbia from the date of payment, and the seller failed to accept the offer within 30 days of its receipt.
(h) No person may sue on a contract if the person has made or engaged in the performance of the contract in violation of this chapter or any rule or order adopted under this chapter, or has acquired any purported right under the contract with knowledge of the facts by reason of which its making or performance violated this chapter or a rule or order adopted under this chapter.
(i) A condition, stipulation, or provision that binds a person who acquires a security or asset, or receives a investment advice, to waive compliance with a provision of this chapter or a rule or order adopted under this chapter shall be void.
(j) The rights and remedies provided by this chapter shall be in addition to any other rights or remedies that may exist at law or in equity, but this chapter does not create a cause of action not specified in this section or authorized under the bonding requirements of § 31-5602.03(h).
FINRA securities brokerage firms with their main offices in Washington, DC:
ABA BUSINESS SERVICES, LLC
1120 CONNECTICUT AVE, NW, WASHINGTON, DC 20036
Mailing Address: 1120 CONNECTICUT AVE, NW, ATTN: HELEN SULLIVAN, 8TH FLOOR, WASHINGTON, DC 20036
ACHATES CAPITAL ADVISORS LLC
1001 CONNECTICUT AVENUE, N.W., SUITE 715, WASHINGTON, DC 20036
ALBRIGHT SECURITIES LLC
1101 NEW YORK AVENUE, NW, SUITE 900, WASHINGTON, DC 20005
ARC SECURITIES, LLC
1330 CONNECTICUT AVENUE, NW, SUITE 223, WASHINGTON, DC 20036
BRIAN COHN, INCORPORATED
5525 SHERIER PLACE, NW, WASHINGTON, DC 20016
CALLAHAN FINANCIAL SERVICES, INC.
1001 CONNECTICUT AVE. NW, SUITE 1001, WASHINGTON, DC 20036
CAPFI PARTNERS, LLC
2445 M STREET NW, 2ND FLOOR, WASHINGTON, DC 20037
CHERTOFF CAPITAL, LLC
1110 VERMONT AVENUE, N.W., 4TH FLOOR, WASHINGTON, DC 20005
COMPASS POINT RESEARCH & TRADING, LLC
3000 K STREET, NW, SUITE 340, WASHINGTON, DC 20007
ENGLAND SECURITIES, LLC
1015 18TH STREET, NW, SUITE 900, WASHINGTON, DC 20036
FOLGER NOLAN FLEMING DOUGLAS INCORPORATED
725 15TH STREET N.W., WASHINGTON, DC 20005-2109
FTI CAPITAL ADVISORS, LLC
1101 K STREET NW, 10TH FLOOR, WASHINGTON, DC 20005
Mailing Address: 1101 K STREET NW, SUITE B100, WASHINGTON, DC 20005
GLOBAL MARKETS, LLC
2700 QUEBEC STREET NW, WASHINGTON, DC 20008-1223
HAMILTON CLARK SECURITIES COMPANY
1701 PENNSYLVANIA AVENUE NW, SUITE 300, WASHINGTON, DC 20006
HEIGHT SECURITIES, LLC
975 F STREET, NW, SUITE 520, WASHINGTON, DC 20004
ICMA-RC SERVICES, LLC
777 NORTH CAPITOL STREET, NE, SUITE 600, WASHINGTON, DC 20002-4240
JOHNSTON, LEMON & CO. INCORPORATED
1101 VERMONT AVENUE - NW, WASHINGTON, DC 20005-3521
KALORAMA CAPITAL, LLC
1776 I STREET NW, SUITE 900, WASHINGTON, DC 20006-3757
LBC CAPITAL PARTNERS LLC
700 13TH STREET, NW. STE 925, WASHINGTON, DC 20005
LFC SECURITIES, LLC
1250 CONNECTICUT AVE NW, SUITE 310, WASHINGTON, DC 20036
MCCRACKEN ADVISORY PARTNERS CORPORATION
1010 VERMONT AVE NW, STE #710, WASHINGTON, DC 20005
MILESTONE ADVISORS LLC
1775 I STREET, NW, SUITE 800, WASHINGTON, DC 20006
SCULLY CAPITAL SECURITIES CORP.
1133 15TH STREET NW, SUITE #900, WASHINGTON, DC 20005
SUCCESS TRADE SECURITIES, INC.
1900 L. STREET NW, SUITE 301, WASHINGTON, DC 20036
TAYLOR FINANCIAL SERVICES, LLC
1128 16TH ST., NW, WASHINGTON, DC 20036
TCG SECURITIES, L.L.C.
1001 PENNSYLVANIA AVE., NW, SUITE 220 SOUTH, WASHINGTON, DC 20004-2505
TWS FINANCIAL, LLC.
1101 PENNSYLVANIA AVENUE SUITE 600, WASHINGTON, DC 20004
UGR, LLC
1227 25TH STREET, NW, SUITE 609, WASHINGTON, DC 20037
ULLICO INVESTMENT COMPANY, INC.
1625 EYE STREET, NW, WASHINGTON, DC 20006
WACHTEL & CO., INC.
1101 FOURTEENTH ST.-NW, WASHINGTON, DC 20005
SHELYN SECURITIES CORP
12250 ROCKVILLE PIKE, STE. 200, ROCKVILLE, MD 20852
SIGNAL HILL CAPITAL GROUP LLC
300 E. LOMBARD STREET, SUITE 1700, BALTIMORE, MD 21202-3243
STEBEN & COMPANY, INC.
2099 GAITHER ROAD, STE. 200, ROCKVILLE, MD 20850
Mailing Address: 2099 GAITHER ROAD, STE. 200, ROCKVILLE, MD 20850
STOUT CAUSEY CAPITAL CORPORATION
910 RIDGEBROOK ROAD, SPARKS, MD 21152
T. ROWE PRICE INVESTMENT SERVICES, INC.
100 E PRATT ST, BALTIMORE, MD 21202
TLS FINANCIAL SERVICES, INC.
920 PROVIDENCE RD, SUITE 203, TOWSON, MD 21286-2977
WASHINGTON SECURITIES CORPORATION
6935 WISCONSIN AVE NO. 510, CHEVY CHASE, MD 20815-6113